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The Markets
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The Markets
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Software & services

Sopheon withdraws guidance but says recurring revenues "have remained good"

Several sectors in which Sopheon operates, such as food, beverage and consumables; chemicals; and defence, are showing resilience to the crisis at present.

Sopheon PLC (LON:SPE), the software firm, warned investors that sales cycles are lengthening.

The future impact of the coronavirus pandemic remains hard to predict so the company has withdrawn market guidance on its likely performance this year.

On the plus side, several sectors in which Sopheon operates, such as food, beverage and consumables; chemicals; and defence, are showing resilience to the crisis at present.

So far in 2020 annualised recurring revenues (ARR) “have remained good”, and the company is seeing orders restart from its existing customers, as their own operations settle down.

Revenue visibility for the full year 2020 now stands at US$23.2mln, which is above last year at this time, underpinned by ARR at US$15.9mln, Sopheon told investors.

Net cash at the end of April was US$21.8mln. After crunching the numbers and doing some modelling, the board has decided it can afford to pay its previously declared dividend of 3.25p per share.

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