ANGOSS REPORTS FIRST QUARTER FISCAL 2011 RESULTS AND MANAGEMENT / BOARD CHANGES

TORONTO, April 14 /CNW/ - Angoss Software Corporation (Angoss) (TSXV: ANC) a leading provider of predictive analytics software and solutions, today announced unaudited results for the first quarter ended February 28, 2011.

In the first quarter of 2011, earned revenue of $2,032,652 was up 1.0% from 2010 revenue of $2,013,266.

In the first quarter of 2011, the Company reported a net loss of $260,533 ($0.03 per share) compared with 2010 net loss of $137,694 ($0.02 per share).  The increase in the 2011 net loss was primarily the result of increased operating expenses and foreign exchange losses offset by a decline in interest expense.  On a year over year basis, the Canadian dollar strengthened 5.0% and 6.2% against the US and UK respectively.  We continue to monitor this issue closely as we move forward and look to hedge currency risk when practical and affordable.

In the first quarter of 2011, billed revenue of $1,405,212 was down 28.8% from 2010 billed revenue of $1,971,687.  Billed initial software license revenue was down YOY by 39% or $364,267. This shortfall can be attributed primarily to a decline in selling personnel employed by Angoss during this comparative period.  Billed solutions revenue was down 40.8% or $267,787.  This difference was primary due to an inadequate pipeline of opportunities at the end of Q4, 2010. Subscription solutions contracts tend to have longer sales cycles than that of Analytic Software sales and the effort to restore an adequate level of solution opportunities during the first quarter has been deemed unacceptable and corrective action has been implemented by management.  We remain hopeful that a recovery of performance can be attained in 2011.  We will closely watch our activities and performance in this area. In an effort to minimize this impact in the future, Angoss has embarked on a focused recruiting endeavour to backfill open sales positions and add strength of leadership in both the software and solutions areas. Intellimaxx revenue was down 23.9% or $70,120 due to the loss of an account in the second half of fiscal 2010. The billed revenue associated with Intellimaxx represents continues to present operating challenges for the organization.

R&D costs increased $145,203 in Q1 2011 vs. Q1 2010 and are attributed to additional costs associated with the Hornby Mobile acquisition and extensive development efforts focused on completing version 5.5 of the Intellimaxx marketing platform. The journey to date in developing this solution has been very expensive and undertaken during less than optimal economic conditions for a product that serves the retail consumer market.  We will consider all our potential options going forward with regard to this product.

Management / Board Changes

Martin Galligan, President & CEO today announced the following management changes.

G. William Sheldon, Chief Solutions Officer

We are pleased to announce that Mr. Sheldon has accepted an offer to join Angoss as our Chief Solutions Officer.  In this newly created position Bill will have global responsibility to grow our Software-as-a-Service business and expand our professional services capabilities associated with this business.  Bill joins us from Paradyz Analytics where he recently held the position of Vice President of Marketing Solutions. Prior to Paradyz, Bill was Chief Operating Officer for CFM Partners who provide compliance risk management solutions to the financial services industry. Bill was previously Senior Vice President of MarketBridge Corporation, a leading global professional services firm focused solely on Sales and Marketing effectiveness.

Bill is a graduate of the University of Virginia and holds a MBA from the Kogod School of Business at the American University in Washington, DC.

Brad McCamus, Vice President, North American Software Sales

Brad has joined Angoss Software Corporation in the capacity of Vice President, North American Software Sales. Brad has over 15 years of experience in go-to-market strategy and sales management with leading North American companies. He has helped senior executives implement sales strategy initiatives that improve the effectiveness of field and inside sales. Brad's career includes time with Xerox Corporation in sales and sales management, as a Vice President at MarketBridge Corporation, as well as Vice President at Fusion Learning Inc.

Brad is a MBA graduate of the Rotman School of Management and a Professional Engineer (University of Waterloo).

Dr. Gordon Swartz

In addition, Angoss looks to strengthen its Board of Directors with the addition of Dr. Gordon Swartz to our slate of proposed directors. Dr. Swartz is an independent management consultant specializing in go-to-market strategy, pricing of new offerings, market analytics and market modeling. His professional experience includes over 20 years in business school academia and consulting. As the Associate Dean for Executive Education at Georgetown University's McDonough School of Business, he was responsible for the development of several world-class graduate degree programs.  In his earlier academic career, Dr. Swartz was Deputy Dean of the MBA program and a professor of marketing at the London Business School.

Dr. Swartz holds a B.Sc. in nuclear engineering and political science from the Massachusetts Institute of Technology, an MBA from Northeastern University and a Ph.D. in business administration from Harvard University's Graduate School of Business.

Dr. Ian J Scott

Effective April 21st, 2011, Dr. Scott will no longer be with the Corporation. Dr. Scott recently held the position of Chief Technology Officer and was an officer of the Corporation.  Prior to this recent appointment Dr. Scott was Vice President of Consulting and responsible for Angoss solution business product development and performance prior to this appointment.

"The Solutions Business capabilities of Angoss are well recognized and utilized by our client base," commented John Gardner, Chairman. " Ian Scott was a driving force behind our FundGUARD solution, and during his ten year association with Angoss Software he has delivered significant intellectual capital to the corporation.  Much of his pioneering proprietary work at Angoss is core to our Software-as-a-Solution offerings".

Predictive Analytics has come of age as a core enterprise practice to sustain competitive advantage

"As we move forward during 2011 we will continue to invest in market coverage and people to advance our success in our core competency.  " said Martin Galligan. "We are poised for growth in this area and a renewed focus is the key under pinning of our 2011 go-to-market strategy.  We are confident that we enter the balance of the year having made many of the necessary management changes that will strengthen our sales and marketing focus to advance our position as a leading provider of predictive analytics software and solutions."

ANGOSS Software Corporation    
Income Statement Information    
(unaudited, stated in Canadian dollars)    
For the period ended Three months ended
  February 28, February 28,
  2011 2010
     
Revenues $2,032,652 $2,013,266
Operating Expenses    
  General and administration 439,246 423,871
  Sales and marketing 1,037,778 1,119,864
  Research and development, net 495,324 350,121
  1,972,348 1,893,856
Income before the following 60,304 119,410
  Amortization of capital assets (83,520) (88,281)
  Amortization of intangible assets (102,071) (104,991)
  Interest expense (33,699) (81,230)
  Foreign exchange gain (loss) (95,638) 20,146
  Stock based compensation (5,909) (2,748)
Net (loss) and comprehensive (loss) for the period $(260,533) $(137,694)
     
Basic and diluted (loss) earnings per share $(0.03) $(0.02)
     
Weighted average number of shares outstanding    
  Basic 7,491,908 7,256,612
  Diluted 7,491,908 7,256,612
     

ANGOSS Software Corporation    
Selected Cash Flow Information    
(unaudited, stated in Canadian dollars)    
For the period ended Three months ended
  February 28, February 28,
  2011 2010
     
Cash provided (used) by operating activities $(109,707) $496,989
Cash used in investing activities (32,250) (12,519)
Cash provided (used) by financing activities 373,103 (129,793)
Effect of foreign exchange rate fluctuations on cash and cash equivalents (70,917) (19,805)
Net increase (decrease) in cash during the period 160,229 334,872
     

     
ANGOSS Software Corporation    
Selected Balance Sheet Information    
(unaudited, stated in Canadian dollars)    
As at February 28, November 30,
  2011 2010
     
  Cash and cash equivalents $1,485,775 $1,325,546
  Restricted investments 248,691 335,000
  Accounts receivable 1,263,239 2,021,389
     
Total assets 5,476,247 6,380,359
     
  Accounts payable and accrued liabilities 1,200,429 1,580,646
  Current portion of deferred revenue 3,604,500 4,236,185
     
Total liabilities 7,258,541 8,408,033
     
Liabilities and shareholders' equity 5,476,247 6,380,359


About Angoss Software Corporation

Angoss is a global leader in delivering predictive analytics to businesses looking to improve performance across sales, marketing and risk.

With a suite of desktop, client-server and in-database software products and Software-as-a-Service solutions, Angoss delivers powerful approaches to turn information into actionable business decisions and competitive advantage.

Angoss software products and solutions are user-friendly and agile, making predictive analytics accessible and easy to use.

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: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE ANGOSS Software Corporation

For further information:

Lon Vining
Chief Financial Officer
416-593-2420
lvining@angoss.com

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