Angoss reports fourth quarter and fiscal 2008 results



    TORONTO, Feb. 9 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V: ANC)
today announced unaudited results for the fourth quarter and fiscal year ended
November 30, 2008.
    2008 revenues were $7,541,523, up 2% from 2007 revenues of $7,361,476.
Fourth quarter revenues of $1,855,106 were off 3% from 2007 fourth quarter
revenues of $1,911,831.
    2008 net income of $294,255 ($0.04 per share) was up 312% from 2007 net
income of $71,346 ($0.01 per share). Fourth quarter net income was $161,481,
compared with a 2007 fourth quarter loss of $12,308.
    During 2008, the Company benefited from demand for more advanced
analytics systems to help companies achieve revenue growth and improved risk
management while reducing marketing and sales costs despite a more challenging
business environment. Billed revenues in the fourth quarter of $2.85 million
were up 9.6% from prior year fourth quarter billed revenues of $2.6 million.
North American growth of 11.2% was offset by a 2.2% decline in Europe.
    Billed revenues for Angoss analytics solutions are dependent on specific
solution implementation cycles and will continue to fluctuate on a quarterly
basis. Contract signings for existing and recurring clients, as well as an
improved foreign exchange environment, contributed to year over year growth in
billed revenues. Fourth quarter and fiscal 2008 results do not incorporate
results from the acquisition of the dthree Intellimaxx(TM) business in
December, 2008.
    Operating expenses increased 11% during 2008 reflecting initial
investment and expansion costs associated with the Company's US field sales
team. 2008 operating income was $324,985, compared with 2007 operating income
of $858,464. With initial investments complete, the Company expects to produce
incremental, higher margin US revenue growth as business conditions improve in
the US financial services and ICT industries during the second half of 2009.
    Offsetting increased operating expenses was a significant positive swing
in foreign exchange exceeding $750,000 over 2007 results (with almost $400,000
of this year over year shift occurring during Q4, 2008) due to the
strengthening of the US Dollar, partially offset by the declining value of the
British Pound. The Company's revenues are earned primarily in North America
and UK markets.
    "Despite a challenging business environment, Angoss closed new business,
added new customers, introduced innovative new analytics solutions to the
market, and acquired a new business in 2008," commented Angoss President Eric
Apps. "We are well positioned to leverage our leadership position in analytics
to provide advanced marketing, sales and risk solutions that will help our
clients achieve revenue growth at reduced cost in 2009. Given the general
outlook, we will also manage expenses carefully to keep costs in line with
revenues."

    Fourth Quarter and Fiscal Year Highlights

    Continued Expansion of Financial and ICT Client Base.

    The Company continued to generate business with existing and new clients
such as Bank of America, Barclaycard, Citigroup, Discover Financial, Nokia,
Novell, eBay PayPal, USAA, and WSIB. Challenging business conditions,
particularly for US and UK based retail banking clients, impacted on deal
closings during the fourth quarter. While IT spending is expected to remain
generally tight, the Company's ability to deliver cost effective analytics
systems supporting revenue acquisition, client retention, and collections
optimization should enable the Company to continue to close business with
existing and new customers during 2009.

    
    Angoss Positioned As Challenger In Gartner Magic Quadrant for Customer
    Data Mining.
    

    Angoss moved up to the 'Challenger Quadrant' in the Gartner Magic
Quadrant for Customer Data Mining released in July, 2008, reflecting the
Company's differentiated focus on providing easier to deploy analytics
solutions, its industry leadership in the introduction of "on demand"
analytics capabilities for marketing and sales organizations, and favorable
feedback based on independent research conducted with end customers on
participating vendors and their capabilities. The Company hopes to further
strengthen its position as one of the leading challengers to traditional
statistical tools vendors in the customer data mining industry in 2009.

    Launch of KnowledgeSEEKER(R) for Salesforce CRM.

    During 2008 the Company developed and introduced KnowledgeSEEKER for
Salesforce CRM, an innovative on demand advanced analytics system that
accelerates sales team performance. The product release culminated with a
formal launch at Dreamforce 2008 Salesforce User Conference, in November,
2008. Available through Apex, the Salesforce ecosystem for partner
applications, KnowledgeSEEKER for Salesforce CRM helps sales organizations use
more advanced analytics to achieve superior sales performance. As a result of
these initiatives, Angoss has secured high visibility, leads and interaction
with the Salesforce marketing, sales and product management teams, while also
directly engaging with existing Angoss finance and ICT customers to introduce
this capability to their marketing and sales organizations. The Company has
developed a solid pipeline of opportunities in the financial services and ICT
industries, including existing Salesforce CRM customers interested in
extending their capabilities through the addition of more sophisticated
analytics, targeting and optimization capabilities of the KnowledgeSEEKER for
Salesforce CRM.

    Acquisition of dthree and Intellimaxx(TM).

    Following completion of the 2008 fiscal year, the Company completed its
acquisition of the Intellimaxx business formerly conducted by dthree, Inc.
Integration of the Intellimaxx(TM) business is proceeding as scheduled. Angoss
and dthree personnel are focused on enhancing dthree's existing client
relationships, extending the capabilities of the Intellimaxx platform, and
enabling significant improvements in marketing effectiveness and cost
reduction through integration of Intellimaxx with Angoss' market proven
analytics engine. Final acquisition and related information will be detailed
in the Company's 2008 annual report to be released in March, 2009. The Company
believes that its ability to successfully complete, implement and improve the
management of acquired businesses will be important to future growth plans.

    Results Summary

    Unaudited preliminary results for the three months and twelve months
ended November 30, 2008 and corresponding 2007 results are as follows:

    
    ANGOSS Software Corporation
    Income Statement Information
    (unaudited, stated in Canadian dollars)

                                Three Months ended        YTD - 12 Months
                                November    November    November    November
                                30, 2008    30, 2007    30, 2008    30, 2007

    Revenues                  $1,855,106  $1,911,831  $7,541,523  $7,361,476
                              ----------------------- -----------------------
    Gross margin               1,855,106   1,911,831   7,541,523   7,361,476
    Operating Expenses
      General and
       administration            415,462     399,858   1,670,868   1,603,250
      Sales and marketing      1,239,243   1,115,495   4,593,452   4,076,190
      Research and development,
       net                       218,054     180,907     952,218     823,572
                              ----------------------- -----------------------
                               1,872,759   1,696,260   7,216,538   6,503,012
                              ----------------------- -----------------------
    (Loss) income before the
     following                   (17,653)    215,571     324,985     858,464
      Other income                     -      28,040      19,895      64,234
      Amortization of capital
       assets                    (93,482)    (89,291)   (366,339)   (330,695)
      Amortization of
       deferred charges           (5,523)    (17,372)    (27,153)    (60,953)
      Dividend expense            (6,304)    (18,255)    (36,684)    (78,795)
      Foreign exchange gain
       (loss)                    273,023    (123,069)    398,251    (358,034)
      Stock based compensation    11,420      (7,932)    (18,700)    (22,875)
                              ----------------------- -----------------------
    Net income and
     comprehensive income for
     the period               $  161,481  $  (12,308) $  294,255  $   71,346
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Basic and diluted loss per
     share                    $     0.02  $    (0.00) $     0.04  $     0.01
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Weighted average number
     of shares outstanding
      Basic                    7,256,612   8,020,193   7,380,744   7,976,401
      Diluted                  7,291,626   8,020,193   7,406,943   8,123,381



    Selected Cash Flow Information
    (unaudited, stated in Canadian dollars)

                                Three Months ended        YTD - 12 Months
                              ----------------------- -----------------------
                                November    November    November    November
                                30, 2008    30, 2007    30, 2008    30, 2007

    Cash (used in) provided
     by operating activities  $  527,591  $  460,267  $  720,245  $1,031,881
    Cash used in investing
     activities                  (32,079)     (8,794)   (225,068)   (785,604)
    Cash (used) provided by
     financing activities       (659,066)   (616,186)   (981,290)     (5,155)
    Net increase (decrease)
     in cash during the period  (163,554)   (164,713)   (486,113)    241,122



    Selected Balance Sheet Information             November 30,  November 30,
    (unaudited, stated in Canadian dollars)               2008          2007

      Cash and cash equivalents                    $ 1,848,994   $ 2,335,107
      Accounts receivable                            2,035,651     2,025,907
      Prepaid expenses and other assets                374,201       467,440
                                                   --------------------------
    Total current assets                             4,258,846     4,828,454
      Capital assets, net                              721,197       862,468
                                                   --------------------------
    Total assets                                   $ 4,980,043   $ 5,690,922
                                                   --------------------------

      Accounts payable and accrued liabilities     $   659,678   $   752,731
      Current portion of deferred revenue            3,942,103     3,880,371
      Current portion of repayable contribution              -        10,988
      Current portion of capital leases                102,853       110,685
      Current portion of term debt                     214,286        60,000
      Current redeemable portion of preferred shares         -       547,847
      Other                                             27,763        38,376
                                                   --------------------------
    Total current liabilities                        4,946,683     5,400,998
                                                   --------------------------

      Capital leases                                   121,970       175,047
      Term debt                                        482,143       195,000
      Lease inducement                                  94,952       122,715

                                                   --------------------------
    Total liabilities                                5,645,748     5,893,760
    Total shareholders' equity                        (665,705)     (202,838)
                                                   --------------------------
    Liabilities and shareholders' equity           $ 4,980,043   $ 5,690,922
                                                   --------------------------

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    About Angoss Software Corporation

    Angoss Software empowers people to make "Better Business Decisions. Every
Day"(TM)
    Some of the world's leading financial services, telecom, information and
communications technology and retail organizations use Angoss On-Demand
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 New York and the
UK and has partnered 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:

For further information: Lon Vining, Chief Financial Officer, (416)
593-2420, lvining@angoss.com

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Angoss Software Corporation

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