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VANCOUVER, BRITISH COLUMBIA – February 27, 2007 – Maximizer Software Inc. (TSX: MAX), the world’s leading
provider of affordable and
easy-to-use Customer Relationship Management (CRM) software applications, today
announced financial results for its fourth quarter and year ended November 30, 2006. The company also announced
that it has changed its reporting currency to US dollars to provide more relevant information given its
significant operations and market competition in the United States.
“We are very pleased to announce that Maximizer Software achieved record revenue growth and its fourth
consecutive year of profitability in fiscal 2006,” said John Caputo, President, Maximizer Software. “Our
revenue growth in 2006 was more than double the overall growth rate of the CRM industry as a whole. With
our newly-aligned executive management team, recent product innovations and rising levels of brand awareness,
we are better positioned to expand our share of the market for CRM applications than at any time in the
company’s history.”
For the 2006 fiscal year:
- The Company’s total revenues increased more than 14% to US$16.5 million in 2006 from US$14.4 million in 2005.
- Operating expenses and cost of sales were US$15.9 million compared to US$14.0 million in 2005.
- Income before other expenses was US$0.6 million in 2006 compared to US$0.4 million in 2005.
- Other expenses and income tax expense were US$0.5 million compared to US$0.3 million in 2005.
- Net income was US$0.1 million in 2006 and 2005.
For the fourth quarter of 2006:
- The Company’s total revenues decreased 2.9% to US$4.2 million compared to US$4.3 million in the previous
quarter and US$4.1 million in the corresponding quarter of 2005.
- Operating expenses and cost of sales were US$4.3 million compared to US$4.1 million in the previous quarter
and US$3.8 million in the corresponding quarter of 2005.
- Other expenses and income tax expense were nominal compared to US$0.3 million in the previous quarter and
US$0.1 million in the corresponding quarter of 2005.
- Net loss under GAAP was US$0.1 million compared to US$0.1 million in the previous quarter and net income of
US$0.2 million in the corresponding quarter of 2005.
“Maximizer Software ended the 2006 year with a significant increase in its cash position and its fourth
consecutive year of profitability,” said Kam Sandhu, Vice President Finance and Administration. “The Company
has eliminated all third party debt and is better positioned to take advantage of further growth opportunities.”
Increasing Profitability
The Company achieved income before other expenses of US$0.6 million in 2006 compared to US$0.4 million in 2005.
Net income was US$0.1 million in 2006 and 2005. The breakdown of net income by region was as follows:
HIGHLIGHTS
Increasing Revenue
Total revenues increased 14.8% to US$16.5 million in 2006 from US$14.4 million in 2005. The breakdown of revenues
by region was as follows:
- The Americas region recorded revenues of US$9.9 million in 2006 compared to US$8.3 million in 2005.
- The EMEA region recorded revenues of US$3.3 million in 2006 compared to US$3.2 million in 2005.
- The Asia Pacific region recorded revenues of US$3.3 million in 2006 compared to US$2.9 million in 2005.
Expanding Customer Base
Throughout 2006, Maximizer Software continued to increase sales of the Maximizer line of products. In 2006, over
570 new and 1,900 existing customers purchased more than 18,400 seats of 'Maximizer Enterprise'. Of these licenses,
more than 16,300 were purchases of ‘Maximizer Enterprise’ 9.0 or 9.5 which began shipping in November 2005 and
August 2006 respectively. In addition, over 27,400 seats of ‘Maximizer Enterprise’ 9 or 9.5 were shipped to
customers during the year under the Company’s highly successful maintenance program.
Also in 2006, over 2,200 new and over 3,800 existing customers purchased more than 12,100 seats of 'Maximizer'.
Of these licenses, more than 10,900 were purchases of ‘Maximizer 9’, the Company’s latest release, which started
shipping in February 2006.
The Company's new customers span a variety of industries in each of Maximizer Software's three geographic
regions, the Americas, EMEA and Asia Pacific, some of which include:
Americas:
Agriculture and Agri-Food Canada; Canadian Standards Association; City of Minneapolis; Lanelogic; Lockheed
Martin; Lortz Manufacturing; Ohio School for the Deaf; Port of Vancouver; TigerStop LLC; University of Waterloo
and Worksafe B.C..
EMEA:
2020 Innovation Group Limited; Banca IMI Spa; BenQ Mobile CEE GmbH; Bourne Leisure; Emirates Advocates;
Interbrand; Lausanne Tourisme; London School of Economics and Political Sciences; Oman Oil and Sandicliffe
Motor Contracts.
Asia Pacific:
AGM Publishing; Asthma Foundation SA Inc; China Manufactures Association (FOC); D-Link Australia Pty Ltd;
Energy Australia; Ferrier Hodgson Ltd; PBG & Associates; Queensland Institute of TAFE; Southern Controls;
Times International and the University of Portsmouth.
Increasing Brand Recognition
During 2006, Maximizer Software continued to increase the Company’s level of brand recognition through
successful media and industry analyst relations activities.
The Company was particularly honored in September of 2006 when it replaced key competitor Salesforce.com as
CRM Magazine’s CRM Market Leader for Small and Medium-Sized Business. According to CRM Magazine Editor-in-Chief
David Myron, “Small and medium-sized businesses have very demanding requirements from their technology vendor
and there is no doubting that this segment of the market represents a large and growing proportion of the
companies seeking the support of CRM technology and knowledge in 2006. Maximizer Software demonstrates the
highly-satisfied customers, proven technology, and smart corporate strategy that distinguish the company as the
winner of the SMB category this year.”
Other prestigious industry honors earned during the year included:
- Customer Inter@ction Solutions' "Product of the Year" award,
- ISM's “2006 Top 15 CRM Solutions” award,
- CRM Magazine’s “Market Leader” distinction in the SFA category,
- Customer Respect Group’s top rating among on-premise CRM vendors,
- Finalist status in SellingPower Magazine’s “Software Sales Team of the Year”,
- Communications Solutions’ “Product of the Year” award, And
- Customer Inter@ction Solutions' ”CRM Excellence Award”.
This success has continued into fiscal 2007, as the Company’s Maximizer 9 product has been selected among the
Small Business Technology Institute’s “Products of the Year” in the “Products that Get the Job Done” category.
Maximizer Software was also mentioned in an increased volume of articles in key industry analyst reports
and business publications during 2006. Organizations writing about the Company included: Forrester Research, The
451 Group, AMR Research, Aberdeen Group, eWeek, SearchCRM, CRM Magazine, TMCNet, SellingPower Magazine, Wall
Street and Technology, Manufacturing Business Technology, Managing Automation, CONTACT Magazine, ComputerWorld,
The Vancouver Sun, Computer Dealer News, SMBXtra and AMI Partners.
About Maximizer Software
Maximizer
Software is the world’s leading provider of affordable and easy-to-use
Customer Relationship Management (CRM) software applications. The
Maximizer line of products help companies develop more responsive,
personalised and profitable customer experiences. Built on a modern,
Web-based architecture, Maximizer is easily integrated with existing
corporate systems and features the latest in sales force automation,
marketing automation, email marketing and customer service technologies
in a single mobile-accessible business management system. Maximizer
Software has sold more than 1 million licenses of its award-winning
software solutions to companies ranging in size from entrepreneurs to
multi-national organisations. Customers include: Siemens, Playground -
an Intrawest Company, HSBC, Cathay Pacific, TD Securities, Brian Tracy
International, South Carolina Department of Commerce and Lockheed
Martin.
Maximizer
Software is a global business with an ecosystem of more than 8,000
corporate customers, 400 business partners and offices in the Americas,
Europe/Middle East/Africa and Asia Pacific. For more information please
visit: www.max.co.uk.
This release may contain certain forward-looking statements reflecting Maximizer Software’s current
expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties,
including without limitation, changes in market and competition, technological and competitive developments,
and potential downturns in economic conditions generally. Additional information on these and other potential
factors that could affect the Company’s financial results are detailed in documents filed from time to time with
the provincial securities commissions in Canada. All trademarks or registered trademarks stated herein are
properties of their respective owners.
Media contact:
Sara Katz
Marketing Manager EMEA
Maximizer Software Ltd
Direct: +44 (0)1628 587770
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