Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

October 12, 2006 06:00 ET

Maximizer Software Announces Increased Revenues for the Third Quarter of 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - 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 August 31, 2006.

For the third quarter of 2006:

- The company's total revenues increased 12 percent 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 percent 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 percent 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 licenses of 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.

About Maximizer Software

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 & 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 organization 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, Nestle Clinical, Ericsson, HSBC, Singapore Airlines, Cathay Pacific, William Mercer, and Bank of New York. Learn more about Maximizer Software at 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 Earnings
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(in thousands of Canadian dollars,)

For the three months ended For the nine months ended
August 31, August 31,
--------------------------- ---------------------------
--------------------------- ---------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)

Revenues $ 4,862 $ 4,346 $ 14,008 $ 12,578

Cost of sales 1,093 971 2,984 2,825
------------ ------------ ------------ ------------

Gross profit 3,769 3,375 11,024 9,753
------------ ------------ ------------ ------------

Operating
expenses
Selling and
marketing 1,346 1,262 3,945 3,785
Research and
development 831 812 2,515 2,394
Administrative
and other 1,241 1,112 3,593 3,387
Amortization
of plant and
equipment 62 66 175 195
Restructuring
costs 303 0 303 0
------------ ------------ ------------ ------------
3,783 3,252 10,531 9,761
------------ ------------ ------------ ------------

Income (loss)
from operations (14) 123 493 (8)

Other income/
(expenses)
Interest
expense (47) (49) (156) (135)
Foreign
exchange
loss (6) (138) (95) (51)
------------ ------------ ------------ ------------
(53) (187) (251) (186)
------------ ------------ ------------ ------------

Net income
(loss)
for the
period $ (67) $ (64) $ 242 $ (194)
------------ ------------ ------------ ------------


Contact Information