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Sopheon surges after "justifiably confident" AGM statement

Sopheon said it is the only vendor recognised in three different Gartner Market Guides as well as in its Magic Quadrant for Project Portfolio Management Worldwide
R&D under the microscope
Sopheon's market differentiation continues to be validated by numerous awards

Sopheon PLC (LON:SPE), the product life-cycle software provider, said its full-year revenue visibility is at an all-time high for this time of the year.

In a statement issued ahead of its annual general meeting (AGM), the company said last year’s positive momentum has continued this year, with the company signing new business that is underpinning performance expectations for the full-year.

READ: Investors cotton on to Sopheon's potential as numbers impress

“Full year revenue visibility for 2018 from contracted business and recurring revenue streams is now up 34% at US$23.5mln, compared to US$17.5mln at this time last year - an all-time high for our mid-year AGM report,” the company was set to tell shareholders at the AGM.

The recurring revenue streams include the effect of several perpetual licence deals and major services extensions, as well as a further major software-as-a-service (SaaS) deal closed during the current quarter.

The group said that, as per proposals outlined in its annual report, it is carrying out “ambitious investment plans” across multiple function areas of the business to scale-up for growth in 2018 and beyond.

Where appropriate, the board is also prepared to consider merger and acquisition opportunities if they are consistent with its goals and focused investment criteria.

“The board continues to be confident and enthusiastic about the prospects of the company, the out-turn for the year and the opportunity to continue to deliver on our vision,” the statement concluded.

WATCH: Sopheon PLC focused on expanding its footprint and seizing growth opportunities

House broker finnCap said Sopheon’s outlook statement for the current year was “justifiably confident”.

“Visibility (contracted revenue for delivery by year-end) of US$23.5mln represents 76% of full-year forecasts, an all-time high in absolute terms, and surpassing the best yet experienced in the range of 55%-73% enjoyed in the past ten years, at this stage of the year,” the broker said.

“Organic revenue growth expectations of 9% for the year are dwarfed by the 34% growth in visibility, and prospects are clearly strong: forecast are de-risked; earnings quality is improving; and investment in sales and marketing has the opportunity to deliver yet further momentum to growth,” it added, as it reiterated its price target at 1,000p.

Shares in Sopheon were up 7.4% at 945p in lunchtime trading.

 

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Sopheon Timeline

Newswire
January 29 2019
Newswire
January 11 2019

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