Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

October 15, 2008 08:00 ET

Maximizer Software Announces Stable Revenues for Third Quarter 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2008) - Maximizer Software Inc. (TSX:MAX), a leading provider of simple, accessible customer relationship management (CRM) solutions for small to medium-sized businesses (SMBs), today announced financial results for its third quarter ended August 31, 2008. All results are reported in US dollars.

For the third quarter of 2008:

- The company's total revenues were US$4.0 million in the third quarter of 2008 compared to US$4.1 million in the corresponding quarter of 2007.

- Operating expenses and cost of sales was US$4.6 million compared to US$4.5 million in the corresponding quarter of 2007.

- Other (income) expenses were other income of US$0.9 million compared to other expenses of a nominal amount in the corresponding quarter of 2007.

- Net loss under generally accepted accounting principles (GAAP) was US$0.5 million, the same as the corresponding quarter of 2007.

"Despite challenging economic conditions, we maintained consistent revenue results in the third quarter," said John Caputo, President, Maximizer Software. "In addition, our mobile CRM business continues to grow and open doors with customers that might not have otherwise purchased CRM software, as we leverage opportunities in the exploding smartphone market."

HIGHLIGHTS

In the third quarter of 2008, 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$4.1 million in the corresponding quarter of 2007. The breakdown by region was as follows:

- The Americas region recorded revenues of US$2.1 million in the third quarter of 2008 compared to US$2.4 million in the corresponding quarter of 2007.

- The EMEA region recorded revenues of US$1.0 million in the third quarter of 2008, compared to US$0.8 million in the corresponding quarter of 2007.

- The Asia Pacific region recorded revenues of US$0.9 million in the third quarter of 2008, the same as the corresponding quarter of 2007.

Increasing Profitability

The Company recorded a net loss of US$0.5 million in the third quarter of 2008, the same as the corresponding quarter of 2007. The breakdown by region was as follows:

- The Americas region recorded a net loss of US$0.4 million in the third quarter of 2008 compared to net income of US$0.1 million in the corresponding quarter of 2007.

- The EMEA region recorded net income of US$0.1 million in the third quarter of 2008 compared to a net loss of US$0.3 million in the corresponding quarter of 2007.

- The Asia Pacific region recorded a net loss of US$0.1 million in the third quarter of 2008, compared to a net loss of US$0.2 million in the corresponding quarter of 2007.

Expanding Customer Base

Throughout the third quarter of 2008, Maximizer Software continued to increase sales of the Maximizer CRM 10 product lines.

In the third quarter of 2008, over 120 new and over 300 existing customers purchased or upgraded more than 2,450 seats of 'Maximizer CRM 10' and over 1,800 seats were shipped to customers under the Company's highly successful maintenance program.

Also in the third quarter of 2008, 370 new and over 340 existing customers purchased more than 1,400 licenses of the latest version, 'Maximizer CRM 10 Entrepreneur Edition'.

In total, Maximizer Software shipped more than 5,400 licenses of Maximizer CRM 10 during the third quarter of 2008.

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:

Bell Pottinger Group; City of Onkaparinga, Dredging Supply Company Inc.; Golden Homes; IPM Informed Portfolio Mgmt Capital AB; Jericho Systems Corporation; Magnolia Brush Mfrs Ltd.; Mickelson Capital Consulting; Motivational Productions, Inc.; Suncorp Treasury; Texas Longhorn Equities Inc.; Transit Trailer; Unitrak Corporation; University of Nevada Reno; US Family Advocates.

Increasing Brand Recognition

In the third quarter of 2008, Maximizer Software continued to raise its level of brand awareness through successful marketing and media relations.

In August 2008, Maximizer was selected by CRM magazine as the winner of their 2008 Market Leader Award for SMB CRM for the second time in three years, taking the lead position from last year's winner and rival Salesforce.com. The awards are based on a composite score that includes revenue, revenue growth, market share, customer wins, reputation for customer satisfaction, depth of product functionality and company direction.

Publications that featured Maximizer Software during the third quarter included Selling Power, Sales & Marketing Management, CRMAdvocate, Inside CRM, SearchCRM.com, destinationCRM.com and TMCNet.

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. As a pioneer in the CRM industry for more than 20 years, Maximizer offers sales, marketing, and customer service staff and managers access to customer information through mobile devices, online, or the desktop. Maximizer's solutions enable organizations to accelerate business growth by streamlining sales, marketing and customer service processes, while exceeding client expectations. Maximizer Software has sold over one million licenses to more than 120,000 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 throughout 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
--------------------------------------------------------------------------
(in thousands of US dollars)

For the three For the nine
months ended months ended
August 31, August 31,
--------------------- ---------------------
--------------------- ---------------------
2008 2007 2008 2007
--------- --------- --------- ---------
--------- --------- --------- ---------
(unaudited) (unaudited) (unaudited) (unaudited)

Revenues $ 4,032 $ 4,087 $ 12,992 $ 12,267

Cost of sales 819 952 2,705 2,642
--------- --------- --------- ---------

Gross profit 3,213 3,135 10,287 9,625
--------- --------- --------- ---------

Operating expenses
Selling and marketing 1,352 1,209 4,114 3,554
Research and development 877 895 2,739 2,386
Administrative and other 1,491 1,408 4,324 4,070
Amortization of plant
and equipment 68 71 195 197
--------- --------- --------- ---------
3,788 3,583 11,372 10,207
--------- --------- --------- ---------

Loss from operations (575) (448) (1,085) (582)

Other (income) expenses
Interest expense 37 48 111 130
Foreign exchange (gain)
loss (128) (23) (128) 100
--------- --------- --------- ---------
(91) 25 (17) 230
--------- --------- --------- ---------

Net loss $ (484) $ (473) $ (1,068) $ (812)
--------- --------- --------- ---------
--------- --------- --------- ---------


Contact Information