Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

July 16, 2007 06:00 ET

Maximizer Software Announces Second Quarter 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 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 second quarter ended May 31, 2007. All results are reported in US dollars.

For the second quarter of 2007:

- The company's total revenues were consistent at US$4.2 million compared to US$4.2 million in the corresponding quarter of 2006.

- Operating expenses and cost of sales were US$4.2 million compared to US$3.9 million in the corresponding quarter of 2006.

- Other expenses were US$0.1 million compared to US$0.1 million in the corresponding quarter of 2006.

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

"We are pleased to report strong, global revenues for the Company's second quarter 2007," said John Caputo, President, Maximizer Software. "Maximizer's EMEA and Asia Pacific regions performed well during the quarter as we are beginning to see results stemming from the framework for international office synergy put in place during the first quarter of the year."

HIGHLIGHTS

In the second 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$4.2 million, compared to US$4.2 million in the corresponding quarter of 2006. The breakdown by region is as follows:

- The Americas region recorded revenues of US$2.2 million in the second quarter of 2007 compared to US$2.6 million in the corresponding quarter of 2006.

- The EMEA region recorded revenues of US$1.0 million in the second quarter of 2007 compared to US$0.9 million in the corresponding quarter of 2006.

- The Asia Pacific region recorded revenues of US$1.0 million in the second quarter of 2007 compared to US$0.7 million in the corresponding quarter of 2006.

Increasing Profitability

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

- The Americas region recorded a net loss of US$0.3 million in the second quarter of 2007 compared to a net income of US$0.3 million in the corresponding quarter of 2006.

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

- The Asia Pacific region recorded a net loss of US$0.1 million in the second quarter of 2007 compared to a net loss of US$0.2 million in the corresponding quarter of 2006.

"Although Maximizer Software ended the second quarter 2007 with a decrease in its cash position, due to an increase in accounts receivable and the net loss incurred during the quarter, it continued to be free of any third party debt," said Kam Sandhu, Vice President Finance and Administration.

Expanding Customer Base

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

In the second quarter of 2007, more than 130 new and over 480 existing customers purchased or upgraded more than 6,400 seats of 'Maximizer Enterprise'. Also during the quarter, over 1,100 customers purchased or upgraded more than 2,300 seats of 'Maximizer'.

In total, Maximizer Software shipped more than 8,700 licenses of the Maximizer line of CRM products throughout the quarter.

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:

BEDIA; Banco Finantia; Capital Regional District; Fedelta Managers Limited; HK Institute of Marketing; Mercury Graphics; Oandp Digital Technologies; Option Six; Omega Digital Technologies; Pioneer Square Advisors; Port Jersey Logistic; Queensland Rail; Salem Convention & Visitors Assn.; Spiral Solutions Europe BV; and the University Of Cambridge.

Increasing Brand Recognition

In the second 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 both "The Forrester Wave, Sales Force Automation, Q2 2007" and "The Forrester Wave: Customer Service Management Software, Q2 2007". The reports, Forrester's latest CRM research, 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.

Throughout the second quarter, Maximizer Software was bestowed with further industry technology and corporate strategy awards. In May 2007, Customer Interaction Solutions Magazine named Maximizer "Product of the Year" and praised the company for its commitment to the CRM industry. In June 2007, the editors of Customer Interaction Solutions further honored Maximizer Software with the publication's annual "CRM Excellence Award" in recognition of the Company's highly successful Maximizer deployment at a major North American resort real estate marketer.

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 Interaction 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."

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 For the six months
ended ended
May 31, May 31,
---------------------- ----------------------
---------------------- ----------------------

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

Revenues $ 4,173 $ 4,224 $ 8,180 $ 7,983

Cost of sales 901 803 1,690 1,647
--------- --------- --------- ---------

Gross profit 3,272 3,421 6,490 6,336
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Operating expenses
Selling and marketing 1,202 1,171 2,345 2,267
Research and development 776 755 1,491 1,466
Administrative and other 1,294 1,114 2,662 2,050
Amortization of plant
and equipment 66 51 126 99
--------- --------- --------- ---------
3,338 3,091 6,624 5,882
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Income (loss) from
operations (66) 330 (134) 454

Other expenses
Interest expense 34 46 82 94
Foreign exchange loss 77 40 123 79
--------- --------- --------- ---------
111 86 205 173
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Net income (loss) $ (177) $ 244 $ (339) $ 281
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