Angoss reports record revenues, led by growth in On-Demand analytics solutions business



    TORONTO, Jan. 31 /CNW/ - Angoss Software Corporation (Angoss)
(TSX-V: ANC) today announced preliminary unaudited results for the fourth
quarter and fiscal year ending November 30, 2007.
    The Company reported record fourth quarter and fiscal year revenues,
higher operating income, with growth in cash flow and deferred revenues.
Expanded use of Angoss predictive analytics software and on-demand predictive
analytics solutions by financial services and information and communications
technology industry clients were the primary driver of business growth.
    On a billed basis, annual revenues grew 9.0% to $7,984,947
(2006: $7,327,374). On an earned basis, annual revenues grew 7.9% to
$7,361,476 (2006: $6,824,114). Deferred revenues were up 21.2% to $3,880,371
(2006 - $3,201,319). Operating expenses increased 5.8% to $6,503,012 from
prior year expenses of $6,143,622. Operating income for the year grew 26.2% to
$858,464, compared with prior year operating income of $680,492. Revenue,
deferred revenue and operating income growth resulted from expanded licensing
and on demand analytics solutions sales.
    "Our 2007 results reflect our industry focus on finance and ICT, and our
uniquely differentiated ability to deliver both licensed and on-demand
advanced analytics solutions for the marketing, sales and risk management
needs of these clients" commented Angoss President Eric Apps. "The current
business environment indicates 2008 will be a challenging year. However,
recent events have further validated the need for financial services and ICT
clients to re-evaluate their traditional statistical tools based approaches to
the assessment of business opportunities and risks, and to evaluate more
advanced, easier to use, and more effective predictive analytics capabilities
to their marketing and sales efforts, and their credit and claims lifecycle
activities. Our client feedback is overwhelmingly positive and confirms our
ability to help our customers drive revenue growth, reduce cost, and
proactively detect, mitigate and reduce credit and operational risks."
    The Company also closed the year with almost $4.4 million in cash and
receivables (2006: $3.9 million), after paying $575,000 for scheduled
retirement of preferred shares. Operating cash flow was $1,031,881
(2006: $1,087,160), consistent with 2006 results.
    Net income was $71,346, compared with prior year net income of $310,879.
This reduction, despite higher revenues, resulted from non-cash foreign
exchange expenses and increased amortization expenses. Foreign exchange
expenses primarily due to the decline in the US Dollar in 2007 were
approximately $358,000 versus prior year expenses of approximately $27,000.
Amortization expenses associated with infrastructure investments supporting
the build out of the Company's on-demand business increased to $331,000 versus
prior year expenses of approximately $188,000. These two factors alone
combined to reduce net income year over year by approximately $479,000.
    Fourth quarter earned revenues grew 4.7% to $1,911,831
(2006: $1,825,819). Billed revenues were $2,577,904, down 6.3% from Q4 2006
billed revenues of $2,751,427. Fourth quarter 2006 results were positively
impacted by large billings associated with specific solution implementations.
Billed revenues will continue to fluctuate on a quarterly basis as the Company
expands its on demand subscriptions business based on the timing of sales
cycles, and acceptance and implementation of solution proposals.
    Operating expenses were down 3.1% to $1,696,260 from prior year
fourth quarter operating expenses of $1,750,479. Fourth quarter operating
income was $215,571, compared with fourth quarter 2006 operating income of
$75,340. The fourth quarter net loss was $12,308, compared with prior year net
income of $53,314. Non-cash foreign exchange expenses of $123,000 in the
fourth quarter associated with the decline of the US Dollar versus a prior
year gain of $86,000 -- this one factor alone reduced net income, year over
year, in the quarter by approximately $209,000.

    Fourth Quarter and Fiscal Year Highlights

    Angoss predictive analytics solutions combine market-proven Angoss
predictive analytics software and industry specific templates; best practices
and implementation services that help clients achieve business value benefits
from predictive analytics faster, and at lower cost.
    The demonstrated capability of Angoss to provide both technology transfer
and on-demand solution delivery options enabling advanced analytics has helped
us deliver rapid, measurable return on investment through accelerated customer
acquisition rates, higher revenue growth, improved insight into customer risk,
and faster time to data driven decisions, are key differentiators for clients 
selecting Angoss.
    Angoss implementations are geared to industry and client specific stages,
needs and capabilities, using the Angoss Predictive Analytics Maturity
Model(TM), a proven implementation methodology which ensures rapid return on
investment, effective knowledge transfer, and rapid solution availability
using both technology licensing and subscription service delivery models.

    Credit Lifecycle Analytics and Portfolio Management Solutions for
    Consumer and Small Business Lending.

    Angoss continued to expand deployments of KnowledgeSEEKER(R),
KnowledgeSTUDIO(R) and StrategyBUILDER(TM) with leading financial services
organizations during 2007 as financial services organizations seek to improve
their analytics capabilities to proactively address and assess changing credit
conditions in their consumer and small business portfolios. Continued
expansion of user groups with Citigroup, Bank of America, HSBC, JP Morgan
Chase, Wachovia, Washington Mutual, Wells Fargo, Barclays, and others
highlighted a year of expansion in the context of challenging market
conditions which are expected to continue throughout 2008. With the
introduction of additional high performance analytics, scorecard creation and
strategy design software during 2007, the Angoss analytics suite is well
positioned as a feature rich alternative for the traditional statistical tools
and methodologies clients have struggled with to address the analytics
challenges associated with recent credit risk lifecycle areas.

    Angoss FundGUARD(TM) System Drives Significant Growth In Assets Under
    Management.

    Angoss FundGUARD(TM) helps mutual fund and wealth management companies
use predictive analytics to drive territory coverage planning and growth in
assets under management, while reducing redemption risk. The Angoss
FundGUARD(TM) solution continued to extend its market leadership position in
the North American mutual fund industry, with continued addition during 2007
of subscriptions at current clients, new client signings, and continued
expansion of the Company's opportunity funnel, focused on North American and
European mutual fund industry prospects. FundGUARD(TM) has generated billions
of dollars in incremental assets under management, providing significant
business insight and value to mutual fund managers seeking to help their sales
organizations achieve improved sales performance and results. During 2008, the
Company will be launching its on-demand FundGUARD(TM) analytics portal for
existing clients and new subscribers, with adapters for Salesforce.com and
other popular on-demand and installed CRM applications.

    Angoss ClaimGUARD(TM) Helps Benefits Insurers Grow Premiums, Reduce Costs
    and Flag Abuse

    During 2007, Angoss successfully implemented the Angoss ClaimGUARD(TM)
system enabling improved fraud and abuse detection and better insight into the
drivers of claims costs at one of North America's largest benefits insurance
carriers. Angoss ClaimGUARD(TM) helps insurers grow premium revenues by better
understanding key drivers of claims costs and outcomes, reduce loss ratios
through more efficient analysis and assessment of claims, and reduce claims
fraud risk. The Angoss solution, implemented in multiple phases, and available
under both licensing and software-as-service delivery models, enables
identification of high-risk claim, claimant and care provider targets in
support of the carrier's claims fraud and abuse detection requirements.
ClaimGUARD(TM) has already resulted in significant, documented, actionable
business value benefits for the client, within weeks of the launch of the
initial solution delivery phase. Angoss expects to continue to expand its
opportunity funnel for ClaimGUARD(TM) solution implementations with North
American benefits and P&C insurers during the 2007 fiscal year.

    Angoss Expands ICT Offerings and Client Base.

    During 2007, Angoss continued to expand its telecom and technology
industry client base for both B2B and B2C marketing, sales and credit
lifecycle applications. In addition to requirements driven enhancements to the
Angoss ICT offering being driven from client engagements, the Company has also
expanded its engaged a third party consultant with domain expertise in the
North American telecom and technology industries to enable delivery of
additional, highly targeted analytics solutions to both existing and new
telecom industry clients.

    Operations Update

    Following receipt of required shareholder and regulatory approvals,
Angoss announced its share consolidation plan effective January 21, 2008.
Under the share consolidation plan, approximately 7,400,000 common shares will
be outstanding after giving effect to a 5 for 1 reverse split of the Company's
common shares and the cancellation of the shares held by former holders of
less than 7,500 shares. Final details of the share consolidation will be
contained in the Company's 2007 Annual Report.
    The Company plans to expand its operations in the US market during 2008
and will be recruiting US based sales resources to address targeted US
business opportunities. The Company will also be announcing additional major
on-demand product releases during 2008. These investments may be supplemented
by the acquisition of one or more analytics organizations if suitable targets
can be identified and negotiations can be concluded on acceptable terms. These
investments should provide the baseline for further expansion of the Company's
US operations in 2008 and future years.
    As a result of these initiatives, the Company may experience fluctuations
in quarterly operating profitability until such time as the company realizes
the benefits from such investments.

    Results Summary

    Unaudited preliminary results for the three months and twelve months
ended November 30, 2007 and corresponding 2006 results are as follows:

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

                          Three Months ended          YTD - Twelve Months
                       November 30,  November 30,  November 30,  November 30,
                           2007          2006          2007          2006

    Revenues           $ 1,911,831   $ 1,825,819   $ 7,361,476   $ 6,824,114
                      --------------------------   --------------------------
    Operating Expenses
      General and
       administration      399,858       513,588     1,603,250     1,700,187
      Sales and
       marketing         1,115,495       887,484     4,076,190     3,199,698
      Research and
       development,
       net                 180,907       349,407       823,572     1,243,737
                      --------------------------   --------------------------
                         1,696,260     1,750,479     6,503,012     6,143,622
                      --------------------------   --------------------------
    Income before the
     following             215,571        75,340       858,464       680,492
      Other income          28,040        31,537        64,234       187,829
      Amortization of
       capital assets      (89,291)      (63,632)     (330,695)     (188,304)
      Amortization of
       deferred charges    (17,372)      (22,800)      (60,953)      (81,895)
      Dividend expense     (18,255)      (28,263)      (78,795)     (119,073)
      Foreign exchange
       gain (loss)        (123,069)       86,237      (358,034)      (27,170)
      Stock option
       expense              (7,932)      (25,105)      (22,875)     (141,000)
                      --------------------------   --------------------------
    Net income for the
     period            $   (12,308)  $    53,314   $    71,346   $   310,879
                      --------------------------   --------------------------
                      --------------------------   --------------------------
    Basic and diluted
     loss per share    $     (0.00)  $      0.00   $      0.00   $      0.01
                      --------------------------   --------------------------
                      --------------------------   --------------------------

    Weighted average
     number of shares
     outstanding

      Basic             40,100,966    39,599,752    39,882,007    39,581,986
      Diluted           40,100,966    40,830,270    40,616,904    41,526,074


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

                          Three Months ended          YTD - Twelve Months
                      --------------------------   --------------------------
                       November 30,  November 30,  November 30,  November 30,
                           2007          2006          2007          2006

    Cash (used in)
     provided by
     operating
     activities        $   460,267   $   319,088   $ 1,031,881   $ 1,087,160
    Cash used in
     investing
     activities             (8,794)      (80,082)     (785,604)     (319,570)
    Cash provided by
     financing
     activities           (616,185)     (597,774)       (5,155)     (493,753)
    Net (decrease)
     increase in cash
     during the period    (164,712)     (358,768)      241,122       273,837



    Angoss Software Corporation
    Selected Balance Sheet Information             November 30,  November 30,
    (unaudited, stated in Canadian dollars)            2007          2006

    Assets
      Cash and cash equivalents                    $ 2,335,107   $ 2,093,985
      Accounts receivable                            2,025,907     1,831,410
      Prepaid expenses and other assets                467,440       479,591
                                                   --------------------------
    Total current assets                             4,828,454     4,404,986
      Capital assets, net                              862,468       407,559
                                                   --------------------------
                                                   $ 5,690,922   $ 4,812,545
                                                   --------------------------

    Liabilities and shareholders' equity
      Accounts payable and accrued liabilities     $   752,731   $   702,243
      Deferred revenue                               3,880,371     3,201,319
      Repayable contribution                            10,988        88,835
      Current portion of capital leases                110,685        43,379
      Current portion of term debt                      60,000             -
      Current redeemable portion of preferred
       shares                                          547,847       575,000
      Other                                             38,376        18,333
                                                   --------------------------
    Total current liabilities                        5,400,998     4,629,109
                                                   --------------------------
      Capital leases                                   175,047        70,628
      Term debt                                        195,000             -
      Lease inducement                                 122,715             -
      Class A Preferred shares, Series 1                     -       486,894
                                                   --------------------------
    Total liabilities                                5,893,760     5,186,631
    Total shareholders' equity                        (202,838)     (374,086)
                                                   --------------------------
                                                   $ 5,690,922   $ 4,812,545
                                                   --------------------------
    

    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.





For further information:

For further information: Alim Khan, Director-Marketing, (416) 593-2412,
akhan@angoss.com

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Angoss Software Corporation

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