Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

February 26, 2009 08:00 ET

Maximizer Software Announces Financial Results for Fiscal 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - Maximizer Software Inc. (TSX:MAX), a leading provider of simple, accessible, customer relationship management (CRM) solutions for small and medium-sized businesses (SMBs), today announced financial results for its fourth quarter and year ended November 30, 2008.

"Despite challenging global economic conditions, Maximizer Software's 2008 year-end revenues were only slightly behind the record revenue achieved in 2007," said John Caputo, president, Maximizer Software. "The Company's emphasis on mobile CRM in 2008 has opened doors to new opportunities and will allow us to build on our success as a leader in this market."

For the fourth quarter of 2008:

- The Company's total revenues were US$3.9 million compared to US$4.0 million in the previous quarter and were US$5.6 million in the corresponding quarter of 2007.

- Operating expenses and cost of sales were US$4.5 million compared to US$4.6 million in the previous quarter and US$5.2 million in the corresponding quarter of 2007.

- Income (loss) before other income (expenses) was a loss of US$0.6 million compared to a loss of US$0.6 million in the previous quarter and income of US$0.4 million in the corresponding quarter of 2007.

- Other income (expenses) were nominal expenses compared to income of US$0.1 million in the previous quarter and expenses of US$0.3 million in the corresponding quarter of 2007.

- Net income (loss) under GAAP was a net loss of US$0.6 million compared to a net loss of US$0.5 million in the previous quarter and a net income of US$0.2 million in the corresponding quarter of 2007.

For the 2008 fiscal year:

- The Company's total revenues decreased by 5.4% to US$16.9 million in 2008 from US$17.9 million in 2007.

- Operating expenses and cost of sales were US$18.6 million in 2008 compared to US$18.0 million in 2007.

- Loss before other expenses was US$1.7 million in 2008 compared to $US0.1 million in 2007.

- Other expenses were nominal in 2008 compared to US$0.5 million in 2007.

- Net loss under GAAP was US$1.7 million in 2007 compared to US$0.6 million in 2007.

"Although Maximizer Software's working capital decreased US$0.8 million as at November 30, 2008 compared to November 30, 2007, the Company continued to be free of any third party debt," said Kam Sandhu, vice president, Finance and Administration. "In addition, in February 2009, the Company successfully negotiated an increase in its overdraft facility with HSBC Bank Canada to Cdn$1.0 million to assist in day-to-day working capital requirements."

HIGHLIGHTS

Maximizer Software Inc. (the "Company") has four key corporate objectives: increasing revenue, increasing profitability, expanding its customer base and increasing its brand recognition. In 2008, the Company's progress on these corporate objectives was as follows:

Revenue

Total revenues decreased 5.4% to US$16.9 million in 2008 from US$17.9 million in 2007. The breakdown of revenues by region was as follows:

- The Americas region recorded revenues of US$9.4 million in 2008 compared to US$10.3 million in 2007.

- The EMEA region recorded revenues of US$4.0 million in 2008 compared to US$4.2 million in 2007.

- The Asia Pacific region recorded revenues of US$3.5 million in 2008 and 2007.

Profitability

The Company realized a net loss of US$1.7 million in 2008 compared to net loss of US$0.6 million in 2007.

The breakdown of the net loss by region was as follows:

- The Americas region recorded a net loss of US$1.0 million in 2008 compared to net income of US$0.1 million in 2007.

- The EMEA region recorded a net loss of US$0.1 million in 2008 compared to nominal net income in 2007.

- The Asia Pacific region recorded a net loss of US$0.6 million in 2008 compared to a net loss of US$0.7 million in 2007.

Expanding Customer Base

In February 2008, the Company launched 'Maximizer CRM 10 Entrepreneur Edition', an upgrade from 'Maximizer 9', incorporating it under the 'Maximizer CRM' brand as the fourth edition, along with the 'Group', 'Professional' and 'Enterprise' editions. In October 2008, 'Maximizer CRM 10.5' was launched, with a strong focus on mobile CRM enhancements to 'MaxMobile for BlackBerry®'.

In 2008, over 510 new and over 1,050 existing customers purchased more than 8,500 seats of 'Maximizer CRM 10'. Over 110 new and over 200 existing customers purchased more than 2,200 seats of the new 'Maximizer CRM 10.5' release and more than 3,000 seats were shipped to customers under the Company's highly successful maintenance program.

Over 250 new and 360 existing customers purchased more than 1,080 seats of 'Maximizer 9'. Over 1,270 new and over 2,080 existing customers purchased more than 6,570 seats of the new 'Maximizer CRM 10 Entrepreneur Edition' release.

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 these customers include:

Americas:

American Guarantee Financial; Brown Realty Advisors; Creative Business Interiors; Guaranteed Returns; Guest-Tek Services; National Kidney Foundation; Owl Distribution Inc; Unitrak Corporation; University of Nevada Reno; and US Family Advocates.

EMEA:

At Home Services from Anchor Trust; ARM Investment Managers; Bell Pottinger Group; BNP Paribas ; Danielson Europe BV ; Entrepreneur Magazine (UK); Immobilsarda; IPM Informed Portfolio Mgmt Capital AB; Pinnacle Computer Systems; and SecureData.

Asia Pacific:

City of Onkaparinga; CSS Computer Finance; Entertainment Services Theatrical Pty Ltd.; Golden Homes ; MEGT (Australia) Ltd.; Panacea; Redink Pty Ltd.; Shinwon Datanet; Suncorp Treasury; and Wealth Management Group.

Increasing Brand Recognition

During 2008, the Company continued to increase its level of brand recognition through successful marketing and media relations activities.

The Company was again rated a "Strong Performer" and received high marks for mid-market "Market Presence" and "Current Offering" in Forrester Research's CRM Wave Reports: "Midmarket CRM Suites, Q3 2008", "Sales Force Management, Q4 2008"; and "Customer Service Software Solutions, Q4 2008". These reports recognized the Company for the cost-effectiveness of its products, extensive customer base and Maximizer's "Time to Value" - the length of time it takes companies to install Maximizer CRM and get it in the hands of their employees.

Other prestigious industry honors earned during the year included:

- CRM Magazine - "2008 CRM Market Leader Award: Small Business Suite CRM" (second award in three years)

- Customer Inter@ction Solutions - "CRM Excellence Award"

- Gartner 2008 SFA Magic Quadrant for Sales Force Automation report - "Niche Player" Honors

- ISM Strategic Advisors - "Top 15 CRM Solutions" (sixth consecutive year)

- Software Magazine - Software 500 (sixth consecutive year)

- Branham300 - Top 250 Canadian Technology Companies

- Business in Vancouver - 2008 Top 100 High-Tech Companies

"CRM is proud to recognize characteristically strong competitor Maximizer Software as a winner in the CRM industry", said Joshua Weinberger, managing editor of CRM magazine. "Maximizer's longtime commitment to serving the fastest-growing CRM segment-SMBs-is reflected in the results, particularly in the high marks it received for its focus on affordability and mobility, and for helping to drive best practices and customer satisfaction."

The Company was also mentioned in numerous articles in key industry analyst reports and business publications during fiscal 2008. Organizations writing about the Company included:

Forrester Research, Aberdeen Group, Gartner Research, Computerworld, eWeek, Top Tech News, Entrepreneur, Inc.com, Wireless Business Technology, RCR Wireless, Sales and Marketing Management, CRM Advocate, IT Business, Small Business Computing, CBR, SellingPower, CRM Today, insideCRM, destinationCRM, DM News, VAR Business, Small Business Technology, TMCnet and IT Business.

Strategic Partnerships

In 2008, the Company added support for Jigsaw, a leading provider of business information and data services that uniquely leverages user-generated content contributed by its global membership. The Company also partnered with McObject®, a provider of embedded database technology for intelligent, connected devices, to enhance customer data storage capacity for 'MaxMobile for BlackBerry®', on mobile smartphone devices.

The Company further strengthened its existing partner relationship with Research in Motion (RIM) through joint initiatives focused on 'MaxMobile for BlackBerry®'. 25 new channel partners were also added globally.

About Maximizer Software

Maximizer Software is a leading provider of simple, accessible, customer relationship management (CRM) solutions, providing the best value for small and medium-sized businesses. As a pioneer in the CRM industry for more than 20 years, Maximizer offers sales, marketing, and customer service staff and managers access to customer information through mobile devices, online, or the desktop. Maximizer's solutions enable organizations to accelerate business growth by streamlining sales, marketing and customer service processes, while exceeding client expectations. Maximizer Software has sold over one million licenses to more than 120,000 customers, ranging in size from entrepreneurs to multi-national organizations, including: Siemens, Societe Generale, HSBC, TD Securities, Lockheed Martin, Brian Tracy International, Fisher & Paykel Healthcare, Oxford University Press, and Cathay Pacific. Maximizer Software is a global business with offices and over 400 business partners throughout the Americas, Europe/Middle East/Africa and Asia Pacific. For more information, 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
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(in thousands of US dollars)

For the three For the
months ended year ended
November 30, November 30,
---------------------- ----------------------
2008 2007 2008 2007
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(unaudited) (unaudited)

Revenues $ 3,946 $ 5,631 $ 16,938 $ 17,898

Cost of sales 869 1,120 3,574 3,762
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Gross profit 3,077 4,511 13,364 14,136
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Operating expenses
Selling and marketing 1,350 1,643 5,464 5,197
Research and development 807 1,037 3,546 3,423
Administrative and other 1,452 1,326 5,776 5,396
Amortization of plant and
equipment 64 69 259 266
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3,673 4,075 15,045 14,282
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Income (loss) before other
income (expenses) (596) 436 (1,681) (146)

Other income (expenses)
Restructuring costs (229) - (229) -
Interest expense (29) (41) (140) (171)
Foreign exchange gain (loss) 213 (227) 341 (327)
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(45) (268) (28) (498)
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Net income (loss) $ (641) $ 168 $ (1,709) $ (644)
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