Angoss Reports Record Q1 Revenues



    Analytics and IntelliMaxx(TM) Drive Results

    TORONTO, April 20 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V:
ANC) today announced unaudited results for the first quarter ended February
28, 2009.
    First quarter revenues were $2,020,967, up 3% from 2008 first quarter
revenues of $1,953,037. Billed revenues were $1.62 million, up 25% from 2008
first quarter billed revenues of $1.29 million.
    IntelliMaxx(TM) contributed approximately $300,000 or 15% of earned
revenues and 18.5% of billed revenues for the period from closing through the
end of the first quarter. The IntelliMaxx(TM) business also achieved operating
profitability and positive cash flow in its first quarter of operations with
Angoss.
    Growth in both reported and billed revenues reflect solid growth in North
American software license and license renewal revenues, up 10% on an earned
basis (29% on a billed basis), offset by lower year over year earned and
billed UK sales (down 26% and 41% respectively) and lower year over year
billings in the Company's analytics solutions business in the quarter (down
38%).
    "Our record first quarter results in a tough market reflect expanding
usage of Angoss analytics software across many leading finance clients, and
the dedicated work of our IntelliMaxx(TM) team to provide a seamless
transition for customers" commented Angoss President Eric Apps. "Moving
forward, we are positioning the IntelliMaxx(TM) business to deliver a truly
unique suite of integrated marketing capabilities spanning data, analytics and
campaign execution for marketers looking to grow revenues and improve the
precision and effectiveness of their direct, email, mobile and online
marketing efforts."
    European results reflected challenging local market conditions in the UK
financial services sector, as well as the decline in value of the British
Pound, off 10% year over year. North American solutions results reflected
longer sales cycles and more complex approval processes in a challenging first
quarter. In both European operations and North American analytics solutions
areas, certain transactions expected for Q1 have since closed in Q2 but
challenging sales conditions are expected to persist throughout 2009. Billed
revenues for Angoss analytics solutions are dependent on specific solution
implementation cycles and will continue to fluctuate on a quarterly basis.
    First quarter operating expenses increased 18% to $1,959,395. Operating
profits were $61,572 compared with fiscal 2008 operating profits of $292,710.
Higher operating expenses primarily reflect incremental operating expenses of
the IntelliMaxx(TM) business and US operations. IntelliMaxx(TM) was operating
profit and cash flow positive in its first quarter with Angoss. The Company
expects to achieve additional operating expense reductions of approximately
$200,000 per quarter over the balance of 2009 as a result of business
integration and cost reduction initiatives associated with the IntelliMaxx(TM)
acquisition. These initiatives implemented effective March 15, 2009 should
position the Company well to continue to grow revenues with lower costs as
business conditions improve later in 2009.
    The Company reported a net loss of $17,109 ($0.00 per share) versus Q1,
2008 net income of $155,614 (or $0.02 per share). The net loss was
attributable to amortization expenses of $50,000 associated with the
IntelliMaxx(TM) acquisition. Partially offsetting increased operating expenses
was a positive non-cash gain in foreign exchange of approximately $100,000
over Q1, 2008 results due to the impact of the stronger US Dollar on the
Company's balance sheet assets.

    First Quarter Highlights

    Continued Client Expansion; Extending to Retail Sector. The Company
continued to generate business with an exceptional group of existing and new
blue chip clients in the first quarter such as American Express, ATB
Financial, ANZ Bank, Banamex, Bank of America, Citigroup and Citifinancial,
Conde Naste Publications, and M&T Bank. In the retailing segment, the
Company's IntelliMaxx(TM) offerings support solution delivery to Sirius Radio,
Shoppers Drug Mart, Rogers Media, The Source, Black's Photography, Sun Media
and other leading Canadian retailing and on-line media organizations.
Challenging business conditions, particularly for US and UK based retail
banking clients, continued to be evident in the first quarter. While IT
spending is expected to remain generally tight, the Company's ability to
deliver cost effective analytics systems supporting customer acquisition,
relationship management, and risk management, and retention should enable the
Company to continue to close business with existing and new customers during
2009.

    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. The Company plans to extend the IntelliMaxx(TM)
platform to offer integrated data management, analytics and campaign execution
and measurement capabilities, enabling highly targeted and effective marketing
initiatives for direct, email, web, and mobile marketing, all delivered on the
Intellimaxx(TM) on demand platform. These capabilities will be offered to
existing and new customers commencing in the second half of 2009.

    Sales Analytics: KnowledgeSEEKER(R) for Salesforce.com 1-2-3 Program
Brings Sales Analytics To The Cloud. Angoss is now able to offer a robust
"cloud computing" option for organizations running Salesforce.com who are
seeking to drive continuous process improvement in their sales organization.
The Company's on demand KnowledgeSEEKER(R) for Salesforce solution seamlessly
integrates with the Salesforce.com suite, and is designed entirely on the
.force platform, leveraging the Salesforce infrastructure to deliver revenue
growth, forecasting accuracy, and robust analytics and reporting capabilities
to Salesforce users. The Company expects to increase its targeted marketing
and subscriber acquisition efforts for KnowledgeSEEKER for Salesforce in the
second half of 2009.

    Risk Analytics: KnowledgeSTUDIO(R) 7 Product Release Plans. Angoss has
successfully completed development of KnowledgeSTUDIO(R) Version 7 which
incorporates several new features and capabilities, including Linux platform
support, "in database mining" extensions for Microsoft (R) SQL Server, Oracle,
and Netezza, and the addition of enhanced data preparation and optimization
tools for marketing and risk analysts. The product launch is scheduled for
late Q2, following completion of the Company's beta test program with
customers. With Version 7 Angoss will offer several enhancements and features
relevant to IT organizations seeking to improve time to analysis and analytics
system manageability while reducing the extensive implementation, training and
recurring cost requirements of traditional statistical tools.

    Results Summary

    Unaudited preliminary results for the three months ended Febraury 28,
2009 and corresponding 2008 results are as follows:

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

                                                       Three Months ended
                                                   February 28,  February 29,
                                                          2009          2008

    Revenues                                        $2,020,967    $1,953,037
                                                   --------------------------
    Operating Expenses
      General and administration                       446,816       386,523
      Sales and marketing                            1,240,272     1,063,522
      Research and development, net                    272,307       210,282
                                                   --------------------------
                                                     1,959,395     1,660,327
                                                   --------------------------
    Income before the following                         61,572       292,710
      Amortization of capital assets                   (82,656)     (78,129)
      Amortization of intangible assets                (50,000)           -
      Amortization of deferred charges                       -       (7,210)
      Dividend expense                                       -      (10,145)
      Foreign exchange gain (loss)                      56,225      (39,440)
      Stock based compensation                          (2,250)      (2,172)
                                                   --------------------------
    Net (loss) income and comprehensive
     income for the period                          $  (17,109)   $  155,614
                                                   --------------------------
                                                   --------------------------

    Basic and diluted (loss) earnings per share     $    (0.00)   $     0.02
                                                   --------------------------
                                                   --------------------------

    Weighted average number of shares outstanding
                                           Basic     7,256,612     7,755,869
                                         Diluted     7,256,612     7,792,622



    Selected Balance Sheet Information             February 28,  November 30,
    (unaudited, stated in Canadian dollars)               2009          2008

      Cash and cash equivalents                     $1,519,435    $1,425,994
      Accounts receivable                            1,542,691     2,035,651
      Prepaid expenses and other assets                446,537       414,201
                                                   --------------------------
    Total current assets                             3,508,663     3,875,846
      Capital assets, net                            1,513,870     1,144,197
      Intangible assets, net                         1,795,000             -
                                                   --------------------------
    Total assets                                    $6,817,533    $5,020,043
                                                   --------------------------


      Accounts payable and accrued liabilities      $  778,827    $  659,678
      Current portion of deferred revenue            3,504,255     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                        4,629,815     4,879,638
                                                   --------------------------
      Long-term debt                                 1,888,000             -
      Deferred revenue                                  67,045        67,045
      Capital leases                                   360,090       121,970
      Term debt                                        428,571       482,143
      Lease inducement                                  84,576        94,952
                                                   --------------------------
    Total liabilities                                7,458,097     5,645,748
    Total shareholders' equity                        (640,564)     (625,705)
                                                   --------------------------
    Liabilities and shareholders' equity            $6,817,533    $5,020,043
                                                   --------------------------



    Selected Cash Flow Information                     Three Months ended
                                                   --------------------------
    (unaudited, stated in Canadian dollars)        February 28,  February 29,
                                                          2009          2008

    Cash provided by operating activities           $  351,827    $  717,352
    Cash used in investing activities               (2,329,329)      (84,507)
    Cash provided (used) by financing activities     2,070,943      (827,902)
    Net increase (decrease) in cash during the
     period                                             93,441      (195,057)
    

    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:

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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