Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

February 27, 2008 09:01 ET

Maximizer Software Announces Record Revenue for Fiscal 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - 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, 2007.

"I am pleased to report that Maximizer Software achieved record revenue in 2007, with the highly successful release of the milestone 10th version of our CRM solution, Maximizer CRM 10, contributing significantly to this record result," said John Caputo, President, Maximizer Software. "Coupled with the Maximizer CRM 10 release was the launch of MaxMobile for BlackBerry® which extends our mobile CRM offering and provides our customers with yet another choice of access to Maximizer CRM through the latest mobile devices."

For the fourth quarter of 2007:

- The Company's total revenues increased by 37.8% to US$5.6 million compared to US$4.1 million in the previous quarter and by 34.3% compared to US$4.2 million in the corresponding quarter of 2006.

- Operating expenses and cost of sales was US$5.2 million compared to US$4.5 million in the previous quarter and US$4.3 million in the corresponding quarter of 2006.

- Income before other expenses was US$0.4 million compared to loss before other expenses of US$0.1 million in the previous quarter and US$0.1 million in the corresponding quarter of 2006.

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

- Net income under GAAP was US$0.2 million compared to a net loss of US$0.5 million in the previous quarter and a net loss of US$0.1 million in the corresponding quarter of 2006.

For the 2007 fiscal year:

- The Company's total revenues increased by 8.3% to US$17.9 million in 2007 from US$16.5 million in 2006.

- Operating expenses and cost of sales were US$18.0 million in 2007 compared to US$15.9 million in 2006.

- Loss before other expenses was US$0.1 million in 2007 compared to income before other expenses of US$0.6 million in 2006.

- Other expenses and income tax expense were US$0.5 million in 2007 compared to US$0.5 million in 2006.

- Net loss under GAAP was US$0.6 million in 2007 compared to net income of US$0.1 million in 2006.

"Although Maximizer Software ended the 2007 year with a decrease in its cash position, its accounts receivable grew significantly due to the successful release of Maximizer CRM 10 in November 2007," said Kam Sandhu, Vice President Finance and Administration.

"Deferred revenue also continued to grow from customers joining the Company's annual maintenance program indicating a healthy future services revenue stream."

HIGHLIGHTS

Increasing Revenue

Total revenues increased 8.3% to US$17.9 million in 2007 from US$16.5 million in 2006. The breakdown of revenues by region was as follows:

- The Americas region recorded revenues of US$10.3 million in 2007 compared to US$9.9 million in 2006.

- The Europe/Middle East/Africa ("EMEA") region recorded revenues of US$4.2 million in 2007 compared to US$3.3 million in 2006.

- The Asia Pacific region recorded revenues of US$3.5 million in 2007 compared to US$3.3 million in 2006.

Increasing Profitability

The Company realized a loss before other expenses of US$0.1 million in 2007 compared to income before other expenses of US$0.6 million in 2006. Net loss was US$0.6 million in 2007 compared to net income of US$0.1 million in 2006. The breakdown of net income (loss) by region was as follows:

- The Americas region recorded net income of US$0.1 million in 2007 compared to US$0.7 million in 2006.

- The EMEA region recorded a nominal net income in 2007 compared to a net loss of US$0.1 million in 2006.

- The Asia Pacific region recorded a net loss of US$0.7 million in 2007 compared to US$0.5 million in 2006.

Expanding Customer Base

In 2007, Maximizer Software re-branded its 'Maximizer Enterprise' product line as 'Maximizer CRM', while launching the milestone 10th version of the product. In 2007, over 440 new and over 1,430 existing customers purchased more than 11,300 seats of 'Maximizer Enterprise'. In addition, in November 2007, the last month of the Company's 2007 fiscal year, over 90 new and over 270 existing customers purchased more than 2,500 seats of the new 'Maximizer CRM 10' release and more than 10,000 seats were shipped to customers under the Company's highly successful maintenance program.

Also in 2007, over 2,200 new and over 2,000 existing customers purchased more than 7,500 seats of the 'Maximizer' product line.

Strategic Partnerships:

The Company also added critical strategic alliances with CanDoGo™, an on-demand sales and professional coaching provider, and 90 Degree Software, a business intelligence reporting provider, as well as strengthened existing partner relationships with Research in Motion (RIM) for Maximizer's new MaxMobile for BlackBerry® offering. The Company also added 48 new channel partners globally.

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 which include:

Americas:

Applied Engineering Inc.; Citizens Bank of Canada; GeoAge; International Registries Inc.; Jim Pattison Lease; Ontario College of Teachers; OSG Tap & Die; Parrish & Heimbecker; Powercomm Inc.; and S.U.C.C.E.S.S.

EMEA:

ABN Amro Bank; Axios Systems; BEDIA; Burkert Contromatic Ltd.; CC Africa; Fedelta Managers Limited; Franklin Covey; J. Wilms N.V.; Omega Digital Technologies; and Thomas Gunn Navigation Services.

Asia Pacific:

Aged Care Financial Services; CYTYC (Australia) Pty Ltd.; Dairy Innovation; Elco Systems; Haac Limited; Honeycombe Property Development; Industry Funds Management; New Horizons Training Centre; Queensland Rail - Finance Department; and Reuters.

Increasing Brand Recognition

During 2007, Maximizer Software continued to increase the Company's level of brand recognition through successful marketing and media relations activities.

Maximizer Software was rated a "Strong Performer" and received high marks for mid-market "Market Presence" in each of Forrester Research's 2007 CRM Wave Reports: "Midmarket CRM Suites, Q1 2007"; "Sales Force Automation, Q2 2007"; and "Customer Service Management Software, Q2 2007". These reports recognized Maximizer 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 and get it in the hands of their employees.

Other prestigious industry honors earned during the year included:

- Branham300 - Top 250 Canadian Technology Companies

- Business Technology Institute - "Product of the Year" award

- CRM Magazine - 2007 CRM Market Award "CRM Leader best serving the requirements of small businesses"

- Gartner 2007 SFA Magic Quadrant benchmark report - "Niche Player" honors

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

- Software Magazine - Software 500 (fifth consecutive year)

- Inside CRM - "Top 25 Influencers in 2007" awarded to William Anderson, Executive VP, Technology

- Customer Inter@ction Solutions - "Product of the Year" award and "CRM Excellence Award"

According to Nadji Tehrani, founder and chairman of TMC, publishers of Customer Interaction Solutions, "The Eighth Annual CRM Excellence Awards commend the companies that have proven to be true CRM partners to their customers and clients. Maximizer has demonstrated to the editors of Customer Inter@ction Solutions that their products and services have substantially improved the processes of their clients' businesses by streamlining and facilitating the flow of information needed for companies to retain their most precious asset - their customers."

Maximizer Software was also mentioned in an increased volume of articles in key industry analyst reports and business publications during 2007. Organizations writing about the Company included: AMI Partners, Forrester Research, BackBone, Computerworld, Inc.com, SellingPower, CRM Today, DestinationCRM, SearchCRM, Canadian Business Online, DM News, VAR Business, Small Business Technology Magazine, TMCnet and IT Business.

Global Business Partner Conference:

In October 2007, Maximizer hosted its first ever Global Business Partner Conference, themed "Connect, Collaborate and Succeed." The highly successful conference featured industry leaders such as Laurie McCabe, Vice President, SMB Insights & Solutions, AMI-Partners, and Paul Briggs, Senior Marketing Manager, RIM, who presented to 66 of Maximizer's top business partners from around the world.

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. Built on a web-based architecture, Maximizer CRM offers sales, marketing, and customer service users and managers their choice of access to customer information - through the desktop, web, or mobile device. Maximizer Software has sold more than one million licenses and has over 8,000 corporate 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 in 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 months ended For the year ended
November 30, November 30,
-------------------------- ------------------

2007 2006 2007 2006
--------- --------- --------- ---------
(unaudited) (unaudited) (audited) (audited)

Revenues $ 5,631 $ 4,194 $ 17,898 $ 16,519

Cost of sales 1,120 883 3,762 3,506
--------- --------- --------- ---------

Gross profit 4,511 3,311 14,136 13,013
--------- --------- --------- ---------

Operating expenses
Selling and marketing 1,643 1,277 5,197 4,747
Research and development 1,037 718 3,423 2,927
Administrative and other 1,326 1,358 5,396 4,518
Amortization of plant and
equipment 69 59 266 212
--------- --------- --------- ---------
4,075 3,412 14,282 12,404
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Income (loss) before other
income (expenses) 436 (101) (146) 609

Other (income) expenses
Restructuring costs 0 0 0 271
Interest expense 41 60 171 196
Foreign exchange (gain)
loss 227 (58) 327 26
--------- --------- --------- ---------
268 2 498 493
--------- --------- --------- ---------

Net income (loss) before
taxes 168 (103) (644) 116

Income tax expense 0 21 0 21
--------- --------- --------- ---------

Net income (loss) $ 168 $ (124) $ (644) $ 95
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