Maximizer Software Inc (TSX: MAX), a leading provider of proven and affordable customer relationship management (CRM) and contact management solutions, today announced financial results for its third quarter ended 31 August 2006.
For the third quarter of 2006:
The company`s total revenues increased 12% to $4.9 million compared to $4.3 million in the corresponding quarter of 2005.
Operating expenses and cost of sales were $4.9 million (including a one-time restructuring cost of $0.3 million) compared to $4.2 million in the corresponding quarter of 2005.
Other expenses were $0.1 million compared to $0.2 million in the corresponding quarter of 2005.
Net loss under generally accepted accounting principles (GAAP) was $0.1 million compared to a net loss of $0.1 million in the corresponding quarter of 2005.
"We are pleased to report that we continue to make progress in our chosen market and that revenues are once again higher," said John Caputo, President, Maximizer Software. "According to new research from industry analysts at AMI Partners, only 35% of American mid-sized businesses are currently using CRM products. This tremendous market opportunity coupled with Maximizer Software`s recent accolades, long history and domain expertise in this segment, position the company to generate increased momentum in the small and medium-sized business market."
Highlights
Maximizer Software names John Caputo president and announces re-alignment:During the third quarter, Maximizer Software completed a re-alignment of its executive leadership team and promoted the company`s former CFO and Co-President John Caputo, to sole President of Maximizer Software. The re-alignment also saw the company`s CTO and Co-President Tom Bennett take a strategic role on Maximizer Software`s board of directors.
Increasing revenue
Maximizer Software recorded revenues of $4.9 million, an increase in revenues of $0.6 million or 12% from $4.3 million in the corresponding quarter of 2005. The breakdown by region is as follows:
The Americas region recorded revenues of $2.8 million in the third quarter of 2006 compared to $2.3 million in the corresponding quarter of 2005.
The EMEA region recorded revenues of $0.9 million in the third quarter of 2006 compared to $1.1 million in the corresponding quarter of 2005.
The Asia Pacific region recorded revenues of $1.2 million in the third quarter of 2006 compared to $0.9 million in the corresponding quarter of 2005.
Increasing profitability
The company recorded a net loss of $0.1 million in the third quarter of 2006 (including a one-time restructuring cost of $0.3 million) compared to a net loss of $0.1 million in the corresponding quarter of 2005. The breakdown by region is as follows:
The Americas region recorded net loss of $0.2 million in the third quarter of 2006 (including a one-time restructuring cost of $0.3 million) compared to a net income of $0.1 million in the corresponding quarter of 2005.
The EMEA region recorded net loss of a nominal amount in the third quarter of 2006 compared to a net loss of a nominal amount in the corresponding quarter of 2005.
The Asia Pacific region recorded a net income of $0.1 million in the third quarter of 2006 compared to a net loss of $0.1 million in the corresponding quarter of 2005.
Expanding customer base
Maximizer Software continued to deliver on its `Two Brands for Two Markets` strategy increasing its sales of `Maximizer Enterprise` to the small to medium-sized enterprise (SME) market, and `Maximizer` to the small office/home office (SOHO) market.
In the third quarter of 2006, more than 150 new and over 1 000 existing customers purchased or upgraded more than 11 800 seats of `Maximizer Enterprise`. Of these customers, over 520 purchased or upgraded more than 6 000 seats of `Maximizer Enterprise 9.5`, the company`s latest release, which started shipping in August 2006.
During this same quarter, over 1 400 customers purchased or upgraded more than 3 800 seats of `Maximizer`. Of these customers, the vast majority purchased or upgraded to `Maximizer 9`, the company`s latest `Maximizer` release, which started shipping in February 2006.
More than 45 000 user licences for Maximizer Software`s version 9 products have been shipped to small and medium-sized businesses since shipping of these versions began in November of 2005 - indicating strong market adoption of the company`s most recent offerings.
The company`s new customers span a variety of industries in each of Maximizer Software`s three primary geographic regions, the Americas, EMEA and Asia Pacific.
New customers include: Lockheed Martin; London School of Economics and Political Sciences; China Manufactures Association (FOC); California Business Furnishing; Asthma Foundation SA Inc; City of Minneapolis; University of Waterloo; PunchStock; Sperco; Ohio School for the Deaf; and Resurrection Health Care.
Increasing brand recognition
In the third quarter of 2006, Maximizer Software continued to raise its level of brand awareness through successful media and analyst relations efforts.
During the quarter, Maximizer Software displaced Salesforce.com as the small and medium-sized business market leader according to an evaluation conducted by a panel of industry analysts at CRM Magazine. The evaluation, based on the company`s revenues, revenue growth, products, reputation for customer satisfaction and company direction, rated Maximizer Software ahead of key competitors Salesforce.com, Sage Software, NetSuite and FrontRange Solutions.
According to the Magazine`s 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."
Throughout the quarter, Maximizer Software was featured in more than 40 media and analyst articles and reports including coverage from: The 451 Group, AMI Partners, Aberdeen Group, DestinationCRM, SearchCRM, Wall Street and Technology and TMCNet.
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Maximizer Software Inc is a leading provider of proven and affordable customer relationship management (CRM) and contact management solutions that help small to medium-sized enterprises improve sales, streamline marketing, and enhance customer service and support. Maximizer Software has helped over 7 500 Maximizer Enterprise customers and over one million Maximizer users grow their businesses by building profitable customer relationships with award-winning solutions. Maximizer Software is a worldwide organisation with business partners and offices in its three regions: Americas, Europe/Middle East/Africa (EMEA), and Asia Pacific. Customers include leading companies such as Siemens, Ipsos-Reid, Nestl'e Clinical, Ericsson, HSBC, Singapore Airlines, Cathay Pacific, William Mercer, and Bank of New York. Learn more about Maximizer Software at www.maximizer.com.
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