Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

October 12, 2007 08:00 ET

Maximizer Software Announces Third Quarter 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 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 third quarter ended August 31, 2007. All results are reported in US dollars.

For the third quarter of 2007:

- The company's total revenues were US$4.1 million compared to US$4.3 million in the corresponding quarter of 2006.

- Operating expenses and cost of sales were US$4.5 million compared to US$4.1 million in the corresponding quarter of 2006.

- Other expenses were a nominal amount compared to US$0.3 million in the corresponding quarter of 2006.

- Net loss under generally accepted accounting principles (GAAP) was US$0.5 million compared to a net loss of US$0.1 million in the corresponding quarter of 2006.

"We continued to expand our customer base and reported relatively consistent revenues during the Company's third quarter of 2007," said John Caputo, President, Maximizer Software. "The loss incurred was larger than anticipated due to accrued costs related to the Company's leased premises. During the third quarter, we were pleased to make significant progress on the development of the upcoming milestone release of our Maximizer line of products."

HIGHLIGHTS

In the third quarter of 2007, the status of Maximizer Software's four corporate objectives of increasing revenue, increasing profitability, expanding the customer base, and increasing brand recognition was as follows:

Increasing Revenue

Maximizer Software recorded revenues of US$4.1 million, compared to US$4.3 million in the corresponding quarter of 2006. The breakdown by region is as follows:

- The Americas region recorded revenues of US$2.4 million in the third quarter of 2007 compared to US$2.4 million in the corresponding quarter of 2006.

- The EMEA region recorded revenues of US$0.8 million in the third quarter of 2007 compared to US$0.8 million in the corresponding quarter of 2006.

- The Asia Pacific region recorded revenues of US$0.9 million in the third quarter of 2007 compared to US$1.1 million in the corresponding quarter of 2006.

Increasing Profitability

The Company recorded a net loss of US$0.5 million in the third quarter of 2007 compared to a net loss of US$0.1 million in the corresponding quarter of 2006. The breakdown by region is as follows:

- The Americas region recorded a net income of US$0.1 million in the third quarter of 2007 compared to a net loss of US$0.2 million in the corresponding quarter of 2006.

- The EMEA region recorded a net loss of US$0.3 million in the third quarter of 2007 compared to a net income of a nominal amount in the corresponding quarter of 2006.

- The Asia Pacific region recorded a net loss of US$0.2 million in the third quarter of 2007 compared to a net income of US$0.1 million in the corresponding quarter of 2006.

"Maximizer Software's working capital decreased US$1.1 million as at August 31, 2007 compared to August 31, 2006," said Kam Sandhu, Vice President Finance and Administration. "The decrease is due to a decline in the Company's cash position and an increase in deferred revenue arising from the continued growth in the Company's maintenance program relating to its Maximizer line of products".

Expanding Customer Base

Throughout the third quarter of 2007, Maximizer Software continued to increase sales of the Maximizer line of products.

In the third quarter of 2007, more than 120 new and over 410 existing customers purchased or upgraded more than 4,100 seats of 'Maximizer Enterprise'. Also during the quarter, over 900 customers purchased or upgraded more than 1,800 seats of 'Maximizer'.

In total, Maximizer Software shipped more than 5,900 licenses of the Maximizer line of CRM products throughout the quarter.

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:

Aged Care Financial Services; Applied Engineering; Artistic Frame; Dorfin; Hartwell Exteriors; Industry Funds Managements; Industrial Marking Systems; Lincoln Financial Group; Parrish & Heimbecker; Real Time Automation; Recycling Council of BC; S&M Moving Systems; S.U.C.C.E.S.S; Urban Fire Protection; and United Forensics.

Increasing Brand Recognition

In the third quarter of 2007, Maximizer Software received many industry awards, as well as being featured in numerous articles in key industry publications, helping to raise the Company's brand awareness.

In addition, in September 2007, CRM Magazine named Maximizer Software a CRM Leader best serving the requirements of small businesses in its 2007 CRM Market Awards. In October 2007, Software Magazine named Maximizer Software to its Software 500 for the fifth consecutive year. Gartner also recognized Maximizer Software in its 2007 SFA Magic Quadrant benchmark report as a Niche Player.

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, personalized 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 organizations. 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, or to request a free trial please visit: www.maximizer.com.

This release may contain certain forward-looking statements reflecting Maximizer Software Inc.'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.



Maximizer Software Inc.
Consolidated Statements of Operations
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(in thousands of US dollars)


For the three months ended For the nine months ended
August 31, August 31,
------------------------- -------------------------
------------------------- -------------------------
2007 2006 2007 2006
--------- --------- --------- ---------
--------- --------- --------- ---------
(unaudited) (unaudited) (unaudited) (unaudited)


Revenues $ 4,087 $ 4,342 $ 12,267 $ 12,325

Cost of sales 952 976 2,642 2,623
--------- --------- --------- ---------

Gross profit 3,135 3,366 9,625 9,702
--------- --------- --------- ---------

Operating expenses
Selling and
marketing 1,209 1,203 3,554 3,470
Research and
development 895 743 2,386 2,209
Administrative
and other 1,408 1,110 4,070 3,160
Amortization of
plant and
equipment 71 54 197 153
--------- --------- --------- ---------
3,583 3,110 10,207 8,992
--------- --------- --------- ---------

Income (loss) from
operations (448) 256 (582) 710

Other (income)
expenses
Restructuring
costs 0 271 0 271
Interest expense 48 42 130 136
Foreign exchange
(gain) loss (23) 5 100 84
--------- --------- --------- ---------
25 318 230 491
--------- --------- --------- ---------

Net income (loss) (473) (62) (812) 219
--------- --------- --------- ---------
--------- --------- --------- ---------

Contact Information