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Sopheon PLC on Wednesday reported a swing to interim loss, due to weaker revenue, as a result of deferred revenue recognition.
The Minnesota, US-based enterprise software provider swung to a pretax loss of $743.000 in the first half of 2022 compared to a profit of $569,000 a year before.
This was on a revenue decline of 4.8% to $15.7 million from $16.5 million a year before.
Sopheon blamed this on materially more software-as-a-service contracts than perpetual license and service contracts, which led to a deferral in revenue recognition.
The company said that its annual revenue visibility is nearing $34.1 million. Last year's revenue amounted to $34.4 million.
Looking ahead, the company said it has both momentum and visibility going forward.
‘We continue to show good annual recurring revenue growth especially in software as a service, supported by high levels of retention. Commercial traction is also building, with both a faster pace of net new sales and the signing of the largest single deal in our history with the US Navy - underpinning future performance,’ the company said.
Shares were down 0.8% at 645.00 pence each on Wednesday morning in London.
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