Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

April 13, 2007 06:00 ET

Maximizer Software Announces First Quarter 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 13, 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 first quarter ended February 28, 2007. All results are reported in US dollars.

For the first quarter of 2007:

- The company's total revenues increased 6.6 percent to US$4.0 million compared to US$3.8 million in the corresponding quarter of 2006.

- Operating expenses and cost of sales were US$4.1 million compared to US$3.6 million in the corresponding quarter of 2006.

- Other expenses remained at US$0.1 million, the same as the corresponding quarter of 2006.

- Net loss under generally accepted accounting principles (GAAP) was US$0.2 million compared to net income of a nominal amount in the corresponding quarter of 2006.

"We are pleased to report that the Company continues to achieve revenue growth over its prior year," said John Caputo, President, Maximizer Software. "During the quarter, we also set in place a framework for leveraging the resources and experience of our Americas region across our global offices. The Americas region has led the Company's growth with revenues increasing by more than 20% per year over the past four years."

HIGHLIGHTS

In the first quarter of 2007, Maximizer Software's progress on its 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$4.0 million, compared to US$3.8 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 first quarter of 2007 compared to US$2.3 million in the corresponding quarter of 2006.

- The EMEA region recorded revenues of US$1.1 million in the first quarter of 2007 compared to US$0.8 million in the corresponding quarter of 2006.

- The Asia Pacific region recorded revenues of US$0.6 million in the first quarter of 2007 compared to US$0.6 million in the corresponding quarter of 2006.

During the quarter, the Company appointed Peter Simons as General Manager of Maximizer Software's Australia and New Zealand region. Simons brings more than 15 years of experience in the Australian and New Zealand information technology market to his role overseeing sales, marketing, distribution strategies and operations in the region. Simons previously founded HR Edge, a company focused on delivering PayGlobal human resources and payroll systems to the Australian market.

Increasing Profitability

The Company recorded a net loss of US$0.2 million in the first quarter of 2007 compared to net income of a nominal amount in the corresponding quarter of 2006. The breakdown by region is as follows:

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

- The EMEA region recorded net income of a nominal amount in the first quarter of 2007 which remains unchanged from the corresponding quarter of 2006.

- The Asia Pacific region recorded a net loss of US$0.3 million in the first quarter of 2007 compared to a net loss of US$0.2 million in the corresponding quarter of 2006.

"Maximizer Software ended the first quarter of 2007 with an increase in both its cash position and its deferred revenues as a result of the continued increase in customers joining the Company's highly successful annual maintenance program," said Kam Sandhu, Vice President Finance and Administration.

Expanding Customer Base

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

In the first quarter of 2007, more than 100 new and over 450 existing customers purchased or upgraded more than 4,900 seats of 'Maximizer Enterprise'. Also during the quarter, over 1,100 customers purchased or upgraded more than 1,300 seats of 'Maximizer'.

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:

ABN Amro Bank; Action Aviation; Abbey Protection Group; Industrial Precision Instruments; Jim Pattison Lease; Magenta recruitment; Mick George Ltd.; Ontario College Of Teachers; Performance Consumer Technology; Sea View Technologies; Montebello Packaging; The Oaks Group; UBS Investment Bank; and University of Western Ontario.

Increasing Brand Recognition

In the first quarter of 2007, Maximizer Software continued to raise its level of brand awareness through successful media and analyst relations efforts.

During the quarter, Maximizer Software was rated a 'Strong Performer' in Forrester Research's The Forrester Wave: Midmarket CRM Suites. As part of the 490-criteria evaluation, Maximizer Software received one of the highest scores for mid-market 'Market Presence' - based on the size of its customer base and research and development team. Maximizer Software was also ranked among the Top 15 CRM Solutions for small and medium-sized businesses by industry research and consulting firm ISM Strategic Advisors. This is the fifth consecutive year that Maximizer has been highlighted as a top CRM provider by the firm.

In February 2007, Maximizer Software won a Product of the Year Award from California-based Small Business Technology Institute. As part of its evaluation, the Small Business Technology panel evaluated almost 300 products based on criteria such as: overall fit; functionality and ease of use; quality and breadth of support; innovation and potential impact on the bottom line of a small business. Winners were highlighted in the institute's publication, Small Business Technology Magazine. According to the Magazine's Lab Director, Patrick Cook, "With the release of Maximizer 9, Maximizer Software continues to demonstrate its commitment to offering small businesses and entrepreneurs a product with robust features and proven reliability at a price point that makes sense. It has all the characteristics of a CRM software product that gets the job done for small business."

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
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(in thousands of US dollars)

For the three months ended
February 28,
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2007 2006
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(unaudited) (unaudited)

Revenues $ 4,007 $ 3,759

Cost of sales 789 844
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Gross profit 3,218 2,915
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Operating expenses
Selling and marketing 1,143 1,096
Research and development 715 711
Administrative and other 1,368 936
Amortization of plant and equipment 60 48
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3,286 2,791
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Income (loss) from operations (68) 124

Other expenses
Interest expense 48 48
Foreign exchange loss 46 39
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94 87
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Net income (loss) $ (162) $ 37
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