TORONTO, April 7 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V:
ANC) today announced unaudited results for the first quarter ending
February 29, 2008, reporting higher revenues and net income, and expanding
predictive analytics solutions opportunities and contract signings in its
focus industries of financial services and information and communications
technology.
Earned revenues of $1,953,037 increased by 11% over 2007 results
($1,757,979). Expanded use of the Company's Credit Risk Analytics(TM) systems
in the financial services sector for portfolio analysis, credit risk modeling,
and compliance with Basel and local market regulatory requirements, was a
primary contributor to revenues. The Company's On-Demand analytics solutions
business - consisting of the FundGUARD(TM) mutual fund predictive sales
solution and the ClaimGUARD(TM) fraud and abuse detection system for the North
American group benefits insurance and health services marketplace - were also
key contributors to revenue growth. Geographically, business expansion in
Europe, the Americas, and Asia regions offset slower growth in the US market.
The Company's billed revenues were $1.3 million compared with prior year
Q1 results of $1.4 million. Billed revenues reflect payment cycles for Angoss
analytics solutions offerings. The Company's business model is increasingly
focused on selling and delivering predictive analytics solutions combining
software licensing or subscription services with associated industry specific
implementation and configuration services. As a result, billed revenues will
fluctuate based on solution implementation cycles, and associated deliverables
and payments milestones. The Company's shift in focus from transactional,
commodity based statistical tools sales to higher value enterprise analytics
solutions will continue to impact on both sales and billing cycles for the
foreseeable future.
Operating expenses of $1,660,327 were up 6% from the first quarter of
2007 ($1,567,703), with sales expenses up 17%, research and development
expenses down 25%, and general and administrative flat year over year. Higher
sales and marketing expenses, and lower "core" R&D expenses reflect planned
business expansion into the US market as well as the transition of personnel
to development and solution delivery roles associated with the Company's
On-Demand enterprise analytics solutions business. It is expected that sales
and research and development expenses will grow during the 2008 fiscal year as
the Company invests in the expansion of its US based sales organization and in
additional research and development associated with the expansion of its
On-Demand solutions offerings for customer analytics in marketing, sales and
risk.
Operating profit was $292,710, or approximately $0.04 per share, compared
with prior year operating profit of $190,276 or $0.02 per share. Net income
rose marginally to $155,614, ($0.02 per share) compared with $152,705
($0.02 per share), despite strong operating profit growth as a result of the
year over year foreign exchange expense associated with the decline in the
value of the US Dollar which produced a negative swing for net income of
approximately $106,000.
Cash from operations of $702,352 (a $755,923 improvement from 2007) was
offset by financing and investing activities of $912,409. At a special meeting
of shareholders on January 3, 2008 the Company's shareholders overwhelmingly
approved a 5 for 1 share consolidation. The cost of the consolidation program
was $775,822, approximately $300,000 below original estimates, reflecting an
increase in the number of shareholders holding the minimum 7,500
pre-consolidation shares. As a result of the consolidation program, several
thousand individual shareholder accounts (82% of all accounts), representing
approximately 10% of the Company's pre-consolidation equity, were eliminated.
"Our first quarter 2008 results were encouraging, in a challenging
business environment, particularly for our core audience of retail lending,
investment banking, and mutual fund and wealth management clients," commented
Angoss President Eric Apps. "Near term, the business environment will continue
to be challenging. However, recent events have reinforced for our clients the
fundamental importance of the more advanced, easy-to-use analytics
capabilities offered by companies like Angoss to their core business processes
- so they can predict future trends with more confidence, earlier. In 2008 we
will invest in expanding our US based sales and solution delivery teams, to
take advantage of the business opportunities we see emerging in the US over
2008 and into 2009 as business conditions improve. We are also actively
exploring opportunities to diversify our local markets business in Europe and
into Asia as we build on already expanding relationships with the local market
affiliates of our global financial services clients."
First Quarter Highlights
Angoss continues to expand its predictive analytics solutions offerings,
combining market proven Angoss predictive analytics software and industry
specific templates, best practises and implementation services that help
clients achieve business value benefits from predictive analytics faster, and
at lower cost.
Expansion of Predictive Analytics Software Deployments with Market
Leaders in Finance and ICT Industries. Client acquisitions of the Angoss
KnowledgeSEEKER(R), KnowledgeSTUDIO(R) and StrategyBUILDER(TM) suite during
the first quarter continued to focus on the finance and information and
communications technology industries with user expansions including American
Express, Barclays Capital, Bill Me Later, Citigroup, Compass Bank, Guardian
Life, HSBC, Washington Mutual, Wells Fargo, JPMorgan Chase, Wachovia and
others.
Angoss FundGUARD(TM) Supports Predictive Lead Deployment To Grow Fund
Sales; Trials Exceed $3 Billion in Assets Under Management. The Angoss
FundGUARD(TM) solution continues to drive significant value for Angoss
customers, with assets under management ("aum") of adopting clients growing by
over $3 Billion. Angoss is now extending the solution capabilities with an
On-Demand portal for advanced analytics and enabling seamless integration with
clients' CRM platforms. Specifically designed for the mutual fund and wealth
management industry, and delivered on both traditional licensing and "software
as a service" (SaaS) delivery models, FundGUARD(TM) uses advanced analytics to
drive territory coverage planning and growth in assets under management while
reducing redemption risk. Recent significant downturns in equity markets have
negatively impacted near term fund client spending on technology solutions but
the Company believes the FundGUARD(TM) solution - particularly when integrated
with clients' own CRM platforms - will deliver accelerated growth in assets
under management and will continue to be a popular solution as the market
environment improves.
Angoss ClaimGUARD(TM) Supports Predictive Fraud and Abuse Detection;
Putting Suspicious Providers Out of Business. Angoss successfully continued
implementation of its ClaimGUARD(TM) solution with a leading North American
based benefits insurer during the first quarter, and is engaged in preliminary
discussions on the deployment and use of ClaimGUARD(TM) with several carriers
in the health benefits insurance marketplace. The ClaimGUARD(TM) solution has
enabled significantly enhanced capabilities in both detection and deterrence,
and is helping deliver improved transparency and accountability to the health
services marketplace in a business environment of continuing concern over
fraud and abuse.
Expansion of US Sales and Solution Delivery Team. During the first
quarter the Company successfully concluded recruiting efforts and has hired a
new US based head for its field sales organization. Based out of the US North
East, this field sales leader joins the Company from positions with GE,
Siebel, Chordiant and other technology industry vendors. He has joined the
Company and is expected to take on primary responsibility for building out the
US field sales team. In tandem with this appointment the Company is moving to
expand its US based sales support resources. In addition to providing closer
to client, sales support that will contribute to revenue growth, this
structure will help offset the Company's exposure to declines in the
US Dollar.Results Summary
Unaudited preliminary results for the three months ended February 29, 2008
and corresponding 2007 results are as follows:
ANGOSS Software Corporation
Income Statement Information
(unaudited, stated in Canadian dollars)
Three Months ended
February 29, February 28,
2008 2007
Revenues $ 1,953,037 $ 1,757,979
----------------------------
Operating Expenses
General and administration 386,523 382,518
Sales and marketing 1,063,522 905,932
Research and development, net 210,282 279,253
----------------------------
1,660,327 1,567,703
----------------------------
Income before the following 292,710 190,276
Amortization of capital assets (78,129) (70,020)
Amortization of deferred charges (7,210) (9,268)
Dividend expense (10,145) (20,070)
Foreign exchange gain (loss) (39,440) 67,027
Stock option expense (2,172) (5,240)
----------------------------
Net income and comprehensive income
for the period $ 155,614 $ 152,705
----------------------------
----------------------------
Basic and diluted loss per share $ 0.02 $ 0.02
----------------------------
----------------------------
Weighted average number of shares outstanding
Basic 7,755,869 7,899,945
Diluted 7,792,622 8,053,240
Selected Cash Flow Information
(unaudited, stated in Canadian dollars)
Three Months ended
----------------------------
February 29, February 28,
2008 2007
Cash (used in) provided by
operating activities $ 702,352 $ (53,571)
Cash used in investing activities (84,507) (561,857)
Cash (used) provided by financing activities (827,902) 598,515
Net decrease in cash during the period (210,057) (16,913)
Selected Balance Sheet Information February 29, November 30,
(unaudited, stated in Canadian dollars) 2008 2007
Cash and cash equivalents $ 2,125,050 $ 2,335,107
Accounts receivable 821,736 2,025,907
Prepaid expenses and other assets 337,449 467,440
----------------------------
Total current assets 3,284,235 4,828,454
Capital assets, net 868,846 862,468
----------------------------
Total assets $ 4,153,081 $ 5,690,922
Accounts payable and accrued liabilities $ 553,677 $ 752,731
Current portion of deferred revenue 3,216,270 3,880,371
Current portion of repayable contribution - 10,988
Current portion of capital leases 106,432 110,685
Current portion of term debt 60,000 60,000
Current redeemable portion of
preferred shares 555,057 547,847
Other 33,537 38,376
----------------------------
Total current liabilities 4,524,973 5,400,998
----------------------------
Capital leases 153,208 175,047
Term debt 180,000 195,000
Lease inducement 115,774 122,715
----------------------------
Total liabilities 4,973,955 5,893,760
Total shareholders' equity (820,874) (202,838)
----------------------------
Liabilities and shareholders' equity $ 4,153,081 $ 5,690,922
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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.
Headquartered in Toronto Canada, Angoss has offices in the UK and
partners with the world's leading enterprise software and services vendors.
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.
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For further information: Alim Khan, Director - Marketing, (416)
593-2412, akhan@angoss.com
