Growing interest in Angoss predictive analytics solutions for finance and telecom drives higher revenues and profits



    TORONTO, April 11 /CNW/ - Angoss Software Corporation (Angoss) (TSX-V:
ANC) today announced unaudited results for the first quarter ending
February 28, 2007, 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.
    Revenues of $1,757,979 increased by 12% over 2006 results ($1,574,610).
Expanding implementations of the Company's FundGUARD(TM) mutual fund
predictive sales solutions, additional business with existing Telecom
Marketing Analytics(TM) solution clients, and initial implementation revenues
resulting from the successful deployment of the Company's ClaimGUARD(TM) fraud
and abuse detection system for a leading North American group benefits
insurance provider, were the primary contributors to revenue growth. The
Company also continued to expand KnowledgeSEEKER(R) and KnowledgeSTUDIO(R)
predictive analytics software deployments across existing customers and new
financial services and information and communications technology clients in
the North America, Europe and Asian markets.
    The Company's billed revenues were $1.4 million, compared with prior year
results of $1.6 million. Billed revenues reflect payment cycles for Angoss
analytics software and solutions offerings. The Company's business model is
increasingly shifting to the provision of 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.
    Operating expenses of $1,567,703 were up 15% from the first quarter of
2006 ($1,358,281), reflecting one time costs associated with investments in
business expansion. These included the Company's relocation of operations to
new premises, installation and consulting expenses associated with investments
in new hardware, network, telecom, and security infrastructure, and
implementation and training costs associated with marketing automation and
demand generation tools to complement the Company's sales force automation
system, and website rebuild to reposition the Company's predictive analytics
software and solutions offerings. These investments will enable more effective
measurement and optimization of marketing and sales costs, and better position
the business to support a broader range of on demand software delivery options
for existing and new customers.
    Operating profit was $190,276 compared with prior year operating profit
of $216,329. Net income rose to $152,705 compared with a first quarter 2006
net income of $59,927. The increase in net income was primarily attributable
to revenue growth and a more favorable foreign exchange environment. During
the first quarter, the strengthening of the US Dollar and British Pound
resulted in a foreign exchange gain of $67,027 compared with a prior year loss
of $56,087.
    Using Angoss predictive analytics systems, clients are able to detect and
better target higher value customer segments, and significantly grow their
revenue opportunities, while improving the effectiveness of their sales
efforts, and more precisely targeting and measuring the impact of their
marketing expenses.
    "We are continuing to position our business around our proven technology
and people competencies focused on helping finance and ICT clients drive
significant business value from their data mining initiatives" commented
Angoss President Eric Apps. "Our messages of usability, scalability and
affordability for our market proven software, and our proven ability to help
clients new to data mining achieve significant business value with knowledge
transfer fast, are helping us expand our sales, and our opportunity funnel."

    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 ABN Amro India, AIG Hong Kong, Citifinancial, Dotomi,
Dell Canada, GE Commercial Finance, GMAC Insurance, Harland Financial, M&T
Bank, T-Mobile UK, United Health Group, Washington Mutual, and Westpac Banking
Corporation.

    Angoss FundGUARD(TM) Supports Predictive Lead Deployment To Grow Fund
    Sales; Trials Exceed $2 Billion in Assets Under Management.

    The Angoss FundGuard solution continues to drive significant value for
Angoss customers, with assets under management ("aum") of adopting clients
growing by well over $2 Billion. Initial client trials have been expanded to
full on demand subscription offerings, and additional clients were signed to
FundGUARD(TM) trials during the first quarter. 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. Angoss expects to
continue to expand the scope of its predictive analytics solutions for the
institutional finance, mutual fund and wealth management industries during
2007.

    Angoss ClaimGUARD(TM) Supports Predictive Fraud and Abuse Detection;
    Reduces Cycle Time to Target Suspicious Claims By 98% From Weeks to
    Hours.

    Angoss successfully continued implementation of its ClaimGUARD(TM)
solution with a leading North American based benefits insurer during the first
quarter, and expanded its sales funnel and focus on the claims lifecycle
opportunity in the insurance property and casualty insurance market segments
in North America. Initial project phase return on investment and business
value metrics show a 98% cycle time improvement and significant hard cash
business value benefit derived from use of the Angoss ClaimGUARD(TM) solution
to improve the speed, accuracy and value of identified fraud and abuse
candidates at claim, claimant and provider levels.

    Results Summary

    Unaudited preliminary results for the three months ended February 28,
2007 and corresponding 2006 results are as follows:

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

                                                       Three Months ended
                                                  ---------------------------
                                                   February 28,  February 28,
                                                          2007          2006

    Revenues                                       $ 1,757,979   $ 1,574,610
                                                  ---------------------------
    Operating Expenses
      General and administration                       382,518       368,980
      Sales and marketing                              905,932       708,724
      Research and development, net                    279,253       280,577
                                                  ---------------------------
                                                     1,567,703     1,358,281
                                                  ---------------------------
    Income before the following                        190,276       216,329
      Amortization of capital assets                   (70,020)      (30,245)
      Amortization of deferred charges                  (9,268)      (14,070)
      Dividend expense                                 (20,070)      (30,105)
      Foreign exchange gain                             67,027       (56,087)
      Stock option expense                              (5,240)      (25,895)
                                                  ---------------------------
    Net income for the period                      $   152,705   $    59,927
                                                  ---------------------------
                                                  ---------------------------

    Basic and diluted loss per share               $      0.00   $      0.00
                                                  ---------------------------
                                                  ---------------------------

    Weighted average number of shares outstanding
                                            Basic   39,688,002    39,499,723
                                          Diluted   40,848,318    40,266,200



    Selected Cash Flow Information
    (unaudited, stated in Canadian dollars)
                                                       Three Months ended
                                                  ---------------------------
                                                   February 28,  February 28,
                                                          2007          2006

    Cash (used in) provided by operating
     activities                                    $   (53,571)  $   343,029
    Cash used in investing activities                 (561,857)       (9,133)
    Cash provided by financing activities              598,515       (19,334)
    Net (decrease) increase in cash during
     the period                                        (16,913)      314,562



    Selected Balance Sheet Information             February 28,  November 30,
    (unaudited, stated in Canadian dollars)               2007          2006

      Cash and cash equivalents                    $ 2,077,072   $ 2,093,985
      Accounts receivable                            1,575,328     1,831,410
      Prepaid expenses and other assets                532,438       479,591
                                                  ---------------------------
    Total current assets                             4,184,838     4,404,986
      Other assets                                     928,696       441,147
                                                  ---------------------------
    Total assets                                   $ 5,113,534   $ 4,846,133
                                                  ---------------------------

      Accounts payable and accrued liabilities     $   547,114   $   702,243
      Current portion of deferred revenue            2,867,291     3,201,319
      Current portion of repayable contribution         69,299        88,835
      Current portion of capital leases                 78,402        43,379
      Current portion of term debt                      60,000             -
      Current redeemable portion of
       preferred shares                                575,000       575,000
      Other                                             13,854        18,333
                                                  ---------------------------
    Total current liabilities                        4,210,960     4,629,109
                                                  ---------------------------
      Capital leases                                   209,716        70,628
      Term debt                                        240,000             -
      Lease inducement                                 143,537             -
      Class A Preferred shares, Series 1               525,462       520,482
                                                  ---------------------------
    Total liabilities                                5,329,675     5,220,219
    Total shareholders' equity                        (216,141)     (374,086)
                                                  ---------------------------
    Liabilities and shareholders' equity           $ 5,113,534   $ 4,846,133
                                                  ---------------------------
    

    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
Australia 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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