Sopheon swings to loss due to deferred revenue recognition

(Alliance News) - Sopheon PLC on Wednesday reported a swing to interim loss, due to weaker ...

Alliance News 24 August, 2022 | 7:56AM
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(Alliance News) - 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 USD743.000 in the first half of 2022 compared to a profit of USD569,000 a year before.

This was on a revenue decline of 4.8% to USD15.7 million from USD16.5 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 USD34.1 million. Last year's revenue amounted to USD34.4 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.

By Abby Amoakuh; abbyamoakuh@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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