Strong growth in revenues and operating profit reported despite slowing
economyTORONTO, July 8 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V: ANC)
today announced unaudited results for the second quarter ended May 31, 2009.
Second quarter revenues were $2,244,549, up 19% from 2008 second quarter
revenues of $1,888,807. Billed revenues were $2.312 million, up 24% from 2008
second quarter billed revenues of $1.865 million. Initial and renewal
subscriptions for software licenses represented 59% of Q2 billed revenues,
while Angoss and IntelliMaxx(TM) "on demand" predictive analytics solution
subscriptions contributed 41% to Q2 billed revenues.
Year to date revenues were $4,265,516, up 11% from 2008 first half
revenues of $3,841,844. Billed revenues were $3.942 million, up 26% from 2008
first half billed revenues of $3.139 million. In year to date results, initial
and renewal subscriptions for software licenses represented 65% of billed
revenues, while Angoss and IntelliMaxx(TM) on demand analytics solutions
represented 35% of billed revenues.
"Second quarter results reflect continued growth of our on demand
analytics capabilities including our recent IntelliMaxx(TM) acquisition, as
well as solid performance in software licensing and license renewals for
Angoss predictive analytics software systems" commented Angoss President Eric
Apps. "These growth trends were positive, resulting in achievement of best
ever second quarter billed and earned revenues, despite a difficult business
environment. We expect conditions to remain challenging for the balance of
2009 as many customers continue to work through a difficult business
environment that is impacting on technology budgets, spending priorities, and
transaction approvals. Our ability to provide measurable return on software
technology investments, as well as our expanding "on demand" solution delivery
capabilities, have been the key drivers of growth this year."
Operating expenses were $1,898,644, up 4% from Q2 2008 operating expenses
of $1,819,076, but down from Q1, 2009 operating expenses. The decrease
resulted from company-wide adjustments in compensation and staffing levels,
effective March 31, 2009, in anticipation of continued challenging business
conditions for the balance of 2009.
Based on the combination of increased revenues and lower operating
expenses, the Company's operating profitability improved significantly in Q2
over Q1, 2009 and prior year results. Operating profit was $345,905 in Q2,
2009, or $0.05 per share, up almost 400% from prior year Q2 operating profit
of $69,730. In year to date results, operating profit was $446,243 (or $0.06
per share) versus prior year first half operation profit of $373,458 (or $0.05
per share).
The Company's second quarter net loss was $119,435, or $0.02 per share,
versus a prior year second quarter net loss of $34,678. In year to date
results, the Company's net loss is $136,544, versus net income of $120,936 or
$0.02 per share in first half 2008 results. The Company's net loss reflects
non cash amortization expense associated with the Q1, 2009 IntelliMaxx(TM)
acquisition, as well as the foreign exchange impact of the significant
deterioration in the value of the US Dollar in Q2, 2008.
Second Quarter Highlights
Continued Client Expansion and Analytics Innovation.
The Company continued to generate business with an exceptional group of
existing and new blue chip clients in the second quarter including Equifax, JP
Morgan Chase, Bank of America, Russell Investments Group, Rogers
Communications, 407 ETR, Mashreq, Ladbrokes, Sirius Radio, Alliance Data
Systems, Standard Chartered Bank, United Health Group, Ontario Lottery &
Gaming Corporation, Javelin Direct, and Charming Shoppes. The Company was also
selected to provide a prototype / proof of concept solution supporting
interactive programming guide analytics to meet the needs of cable operators,
service providers and device manufacturers in the converging computing and
cable television industries. This solution will be delivered on an on demand
hosted basis over the next several quarters, using the Angoss on demand
predictive analytics infrastructure platform.Marketing Analytics: IntelliMaxx(TM) On Demand Email, Web and Mobile
Marketing Solutions.The Company's integration of the IntelliMaxx(TM) business is proceeding
as scheduled. During the second quarter, the Company relaunched the
IntelliMaxx(TM) website to reflect the new positioning of the business, and
finalized its product roadmap and development plans for the integrated suite
of IntelliMaxx(TM) offerings. The Company is currently completing integration
of a refactored and modularized IntelliMaxx(TM) marketing suite with the
Angoss on demand analytics engine and analytic data mart, having secured
preliminary data assets from third parties to prototype the build out of the
IntelliMaxx(TM) proprietary data asset and data access toolkit for market
planning and customer targeting. Angoss will also be adding enhanced email and
mobile capabilities to extend IntelliMaxx(TM) integrated marketing and
measurement capabilities to mobile devices. These initiatives are expected to
continue through the balance of fiscal 2009.Sales Analytics: KnowledgeSEEKER(R) for Salesforce Selected to Drive
Sales Force Optimization for Major Fund and Wealth Management Client.Angoss has been selected as the preferred vendor for delivering advanced
analytics to support implementation of a major fund industry client with
almost $200 billion in assets under management deploying its CRM solution.
Angoss is proposing to deliver its FundGUARD(TM) solution on a fully
integrated basis with the client's Salesforce.com deployment, leveraging the
Angoss KnowledgeSEEKER(R) for Salesforce.com predictive analytics plug in for
the Salesforce.com platform. The Company currently expects to complete
negotiations and commence implementation during the second half of 2009.
Risk Analytics: KnowledgeSTUDIO(R) 7 Released to Customers.
Angoss released KnowledgeSTUDIO(R) Version 7 as scheduled, incorporating
several new features and capabilities, including Linux platform support, "in
database mining" extensions for Microsoft (R) SQL Server, Oracle, and Netezza,
and enhanced data preparation and optimization tools for marketing, sales and
risk analytics applications. Angoss financial services clients have reported
significant business value benefits from their use of Angoss, compared with
traditional, proprietary statistical toolkits, with analyst productivity gains
of up to 80% in the design, development and delivery of predictive models and
strategies to support marketing, sales and credit lifecycle risk and decision
management needs, compared with traditional statistical tools and methods.
Stock Option Disclosure.
In accordance with the requirements of The Toronto Venture Exchange, and
as previously disclosed in the Company's 2009 Management Information Circular
the Company has granted 22,500 options to acquire a total of 22,500 common
shares to directors other than management representatives at an exercise price
of $0.35 per share.ANGOSS Software Corporation
Income Statement Information
(unaudited, stated in Canadian dollars)
For the period ended Three months ended YTD - Six Months
------------------------- -------------------------
May 31, May 31, May 31, May 31,
2009 2008 2009 2008
Revenues $ 2,244,549 $ 1,888,807 $ 4,265,516 $ 3,841,844
------------------------- -------------------------
Operating Expenses
General and
administration 545,392 423,641 953,442 799,146
Sales and marketing 964,846 1,109,988 2,205,118 2,173,510
Research and
development, net 388,406 285,448 660,713 495,730
------------------------- -------------------------
1,898,644 1,819,077 3,819,273 3,468,386
------------------------- -------------------------
Income before the
following 345,905 69,730 446,243 373,458
Other income - 19,895 - 19,895
Amortization of
capital assets (99,187) (111,918) (181,843) (190,047)
Amortization of
intangible assets (50,000) - (100,000) -
Interest expense (37,005) (9,604) (75,771) (20,622)
Preferred share
expenses - (17,328) - (34,683)
Foreign exchange
gain (loss) (255,062) 28,521 (198,837) (10,919)
Stock based
compensation (24,086) (13,974) (26,336) (16,146)
------------------------- -------------------------
Net (loss) income and
comprehensive (loss)
income for the
period $ (119,435) $ (34,678) $ (136,544) $ 120,936
------------------------- -------------------------
------------------------- -------------------------
Basic and diluted
(loss) earnings per
share $ (0.02) $ (0.00) $ (0.02) $ 0.02
------------------------- -------------------------
------------------------- -------------------------
Weighted average number of shares outstanding
Basic 7,256,612 7,256,612 7,256,612 7,504,877
Diluted 7,256,612 7,256,612 7,256,612 7,528,732
Selected Cash Flow Information
(unaudited, stated in Canadian dollars)
For the period ended Three months ended YTD - Six Months
------------------------- -------------------------
May 31, May 31, May 31, May 31,
2009 2008 2009 2008
Cash provided by
operating activities $ (390,943) $ (650,217) $ 35,232 $ 67,135
Cash used in
investing activities (22,057) (86,584) (296,734) (171,091)
Cash provided (used)
by financing activities (135,844) 11,174 (193,901) (816,728)
Net increase (decrease)
in cash during the
period (548,844) (725,627) (455,403) (920,684)
Selected Balance Sheet Information May 31, November 30,
(unaudited, stated in Canadian dollars) 2009 2008
Cash and cash equivalents $ 970,591 $ 1,425,994
Restricted investments 391,000 423,000
Accounts receivable 1,983,009 2,035,651
Prepaid expenses and other assets 464,022 414,201
-------------------------
Total current assets 3,808,622 4,298,846
Capital assets, net 1,045,740 721,197
Intangible assets, net 1,745,000 -
-------------------------
Total assets $ 6,599,362 $ 5,020,043
-------------------------
Accounts payable and accrued liabilities $ 743,125 $ 659,678
Current portion of deferred revenue 3,498,002 3,875,058
Current portion of capital leases 101,248 102,853
Current portion of term debt 214,286 214,286
Other 31,199 27,763
-------------------------
Total current liabilities 4,587,860 4,879,638
-------------------------
Long-term debt 1,888,000 -
Deferred revenue 128,963 67,045
Capital leases 277,817 121,970
Term debt 375,000 482,143
Lease inducement 77,635 94,952
-------------------------
Total liabilities 7,335,275 5,645,748
Total shareholders' equity (735,913) (625,705)
-------------------------
Liabilities and shareholders' equity $ 6,599,362 $ 5,020,043
-------------------------Angoss Software empowers people to make "Better Business Decisions. Every
Day."(TM)
Some of the world's leading financial services, telecom, life sciences,
and retail organizations use Angoss predictive analytics software and services
to grow revenues, while reducing risk and cost. Angoss helps our clients
utilize business data to discover the key drivers of behavior, predict future
trends and events, and act with confidence when making business decisions.
Angoss combines powerful market proven software with focused industry
services expertise in the deployment, integration and use of predictive
analytics in enterprise environments. Our differentiators include broad user
acceptance, a commitment to open standards, rich functionality, rapid
deployment, exceptional ease-of-use and affordability.
For more information, visit www.angoss.com.
This press release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. The accuracy of these statements may
be impacted by a number of business risks and uncertainties that could cause
actual results to differ materially from those projected or anticipated,
including: the risk that the sale of our products and services involves a long
sales cycle; the risk that the economic environment and business conditions
will remain difficult to predict; the risk of competition in our target
markets; the risk that we may not respond adequately to evolving technologies;
the risk that we or our customers may have difficulties in introducing our
products or services; the risk that we will encounter difficulties in
continuing to offer services; the risk that we will encounter difficulties in
integrating the operations of acquired companies with our own; the risks of
conducting our operations in a variety of international locations; the risk
that we may need to record future write-downs of assets arising from our
investments in other companies; the risks relating to the costs that we may
incur as a result of litigation against us; and other risks described in our
filings with securities regulatory authorities, including our annual reports,
interim financial statements and similar disclosure documents. ANGOSS Software
does not undertake any obligation to update this forward-looking information
after the date of its initial publication, except as required under applicable
law.Note: The Toronto Venture Exchange has neither approved nor disapproved
the above information.
For further information: Lon Vining, Chief Financial Officer, (416)
593-2420, lvining@angoss.com
