Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

July 15, 2005 08:01 ET

Maximizer Software Announces Second Quarter 2005 Financial Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 15, 2005) - 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 second quarter ended May 31, 2005.

For the second quarter of 2005:

- The Company's total revenues were $4.0 million compared to $4.2 million in the previous quarter and $4.2 million in the corresponding quarter of 2004.

- Operating expenses and cost of sales were $4.3 million compared to $4.1 million in the previous quarter and $4.0 million in the corresponding quarter of 2004.

- Other expenses were $0.1 million compared to other income of $0.1 million in the previous quarter and marginal other expenses in the corresponding quarter of 2004.

- Net loss under GAAP was $0.3 million compared to net income of $0.2 million in the previous quarter and net income of $0.2 million in the corresponding quarter of 2004.

"We have progressed in the first half of 2005 on our corporate objectives of increasing revenue, expanding our customer base and increasing brand recognition," said John Caputo, Office of the President & Chief Financial Officer, Maximizer Software Inc. "During the second half of 2005, we will continue to execute on these objectives as well as on improving our profitability."

HIGHLIGHTS

Increasing Revenue

Maximizer Software recorded revenues of $4.0 million for the second quarter of 2005 and $8.2 million for the year to date, an increase of $0.05 million or 0.5% from the corresponding year to date for 2004. The breakdown by region of the second quarter of 2005 is as follows:

- The Americas region recorded revenues of $2.3 million in the second quarter of 2005, compared to $2.4 million in the previous quarter and $2.0 million in the corresponding quarter of 2004.

- The EMEA region recorded revenues of $0.9 million in the second quarter of 2005 compared to $1.0 million in the previous quarter and $1.1 million in the corresponding quarter of 2004.

- The Asia Pacific region recorded revenues of $0.8 million in the second quarter of 2005 compared to $0.9 million in the previous quarter and $1.1 million in the corresponding quarter of 2004.

Increasing Profitability

The Company recorded a net loss of $0.3 million for the second quarter of 2005 and a net loss of $0.1 million for the year to date compared to net income of $0.2 million for the corresponding year to date in 2004. The breakdown by region of the second quarter of 2005 is as follows:

- The Americas region recorded net income of a nominal amount in the second quarter of 2005 compared to net income of $0.3 million in the previous quarter and net income of $0.1 million in the corresponding quarter of 2004.

- The EMEA region recorded a net loss of $0.2 million in the second quarter of 2005 compared to net income of a nominal amount in the previous quarter and net income of a nominal amount in the corresponding quarter of 2004.

- The Asia Pacific region recorded a net loss of $0.2 million in the second quarter of 2005 compared to a net loss of $0.2 million in the previous quarter and net income of $0.1 million in the corresponding quarter of 2004.

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 sales of 'Maximizer' to the small office/home office (SOHO) market.

In the second quarter of 2005, over 150 new and over 500 existing customers purchased or upgraded more than 4,300 seats of 'Maximizer Enterprise'. Of these customers, over 600 purchased more than 4000 seats of 'Maximizer Enterprise 8', the Company's latest release, which started shipping in February 2004. During this same quarter, over 1,400 companies purchased or upgraded more than 3,300 seats of 'Maximizer 8', the Company's latest release, which started shipping in May 2004.

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:

Aecon Buildings Group; Brannelly Financial Pty Ltd; Callumet Electronics Corporation; Cooper Security; De la Rue Cash Systems AG; Denovo Partnership; Eggar & Co (Chemicals) Ltd; Global Financial Aid Services Inc.; Instiituto Francaise dAtene; Marine Safety Victoria; Medtox Laboratories; Midcoast Financial Inc; Pail Pac (Pty) Ltd - Durban; Sharp Plywood; Schoeller Network Control; Soil Instruments Limited; Trackerjack Australisia Pty Ltd; Willment Travel.

Increasing Brand Recognition

In the second quarter of 2005, Maximizer Software received three significant product awards that helped increase the Company's brand recognition: ISM's "Top 15 CRM Small and Medium Business Software" award; VARBusiness magazine's "Mid-Market Products of the Year" award; and Communications Solutions' "2004 Product of the Year" award. Maximizer Software was also named one of Canada's Top Technology Companies in the Branham300.

Maximizer Software achieved additional brand recognition in the second quarter of 2005 through feature articles and mentions in more than 17 technology, trade and business publications, including Backbone, B2B, Business in Vancouver, Communications Solutions, CRM Today, DestinationCRM.com, Entrepreneur, Inc., IT Toolbox, Sales & Marketing Management, SearchCRM.com, SmallBizTechnology.com, The Vancouver Sun, and VARBusiness. As a result of these articles, Maximizer Software was mentioned to a total potential audience of over ten million people in the second quarter of 2005.

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 7,000 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 Operations
--------------------------------------------------------------------
(in thousands of Canadian dollars)

For the For the
three months ended six months ended
May 31, May 31,
--------------------- ---------------------
2005 2004 2005 2004
--------- ---------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)

Revenues $ 4,021 $ 4,202 $ 8,232 $ 8,187

Cost of sales 891 1,000 1,854 1,799
--------- --------- --------- ---------

Gross profit 3,130 3,202 6,378 6,388
--------- --------- --------- ---------

Operating expenses
Selling and marketing 1,346 1,127 2,523 2,495
Research and
development 804 792 1,582 1,603
Administrative and
other 1,182 994 2,275 1,927
Amortization of plant
and equipment 66 86 129 179
--------- --------- --------- ---------
3,398 2,999 6,509 6,204
--------- --------- --------- ---------

Income (loss) from
operations (268) 203 (131) 184

Other
income/(expenses)
Interest expense (42) (42) (86) (83)
Foreign exchange gain
(loss) (9) 16 87 113
--------- --------- --------- ---------
(51) (26) 1 30
--------- --------- --------- ---------

Net income (loss) for
the period $ (319) $ 177 $ (130) $ 214
--------- --------- --------- ---------


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