Maximizer Software Inc.
TSX : MAX

Maximizer Software Inc.

October 12, 2005 08:00 ET

Maximizer Software Announces Third Quarter 2005 Financial Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 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 third quarter ended August 31, 2005.

For the third quarter of 2005:

- The Company's total revenues were $4.3 million, an increase of 8.1% compared to $4.0 million in the previous quarter, and an increase of 10.8% compared to $3.9 million in the corresponding quarter of 2004.

- Operating expenses and cost of sales were $4.2 million compared to $4.3 million in the previous quarter and $3.9 million in the corresponding quarter of 2004.

- Other expenses were $0.2 million, including a foreign exchange loss of $0.1 million, compared to $0.1 million in the previous quarter and $0.2 million in the corresponding quarter of 2004.

- Net loss under GAAP was $0.1 million compared to $0.3 million in the previous quarter and $0.1 million in the corresponding quarter of 2004.

"Our third quarter results are marked by a number of positive achievements, including an increase in total revenues of more than eight per cent and a significant improvement in our bottom line compared to last quarter," said John Caputo, Office of the President & Chief Financial Officer, Maximizer Software Inc. "We look forward to further progress in our final quarter this year."

HIGHLIGHTS

Increasing Revenue

Maximizer Software recorded revenues of $4.3 million for the third quarter of 2005 and $12.6 million for the year to date, an increase of $0.5 million or 3.9% from the corresponding year to date for 2004. The breakdown by region of the third quarter of 2005 is as follows:

- The Americas region recorded revenues of $2.3 million in the third quarter of 2005, compared to $2.3 million in the previous quarter and $2.1 million in the corresponding quarter of 2004.

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

- The Asia Pacific region recorded revenues of $1.0 million in the third quarter of 2005 compared to $0.8 million in the previous quarter and $0.9 million in the corresponding quarter of 2004.

Increasing Profitability

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

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

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

- The Asia Pacific region recorded a net loss of $0.1 million in the third quarter of 2005 compared to a net loss of $0.2 million in the previous quarter and a net loss of $0.2 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 third quarter of 2005, over 150 new and over 500 existing customers purchased or upgraded more than 5,000 seats of 'Maximizer Enterprise'. Of these customers, over 450 purchased more than 4,500 seats of 'Maximizer Enterprise 8', the Company's latest release, which started shipping in February 2004. During this same quarter, over 1,100 companies purchased or upgraded more than 2,300 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:

Air Quality Innovative Solution LLC; Alliance Insurance; Birlasoft; Can-Do National Tape; Combined Insurance; First Press; Hayden Communications Inc.; Healthspring USA LLC; Hutton and Northey Sales; Primeq Interactive Advertising Inc.; SMBC Capital Market Limited; Sports Knowledge Australia; Stirling University Research & Enterprise Ltd; Worth International Media Group.

Increasing Brand Recognition

In the third quarter of 2005, Maximizer Software received two significant product awards: CRMGuru.com's 'Summit Award for CRM Solution Excellence'; and Customer Inter@ction Solutions' 2005 'CRM Excellence Award'. Maximizer Software also achieved Gold Certified Partner Program status in Microsoft's ISV/Software Solutions core competency.

Maximizer Software was also featured and mentioned in more than ten technology, trade and business publications in the third quarter of 2005, including BC Business, Business In Vancouver, Contact, CRMGuru.com, Customer Inter@ction Solutions, Entrepreneur Magazine, Inc., Intuit's Developer Network newsletter, SMBXtra.com, and TMCNet.com. The451 Group, a research-based advisory firm, also profiled Maximizer Software in an analyst report titled, 'Maximizer has graduated from Contact Management to Full CRM'. As a result of these articles, Maximizer Software was mentioned to a total potential audience of over six million people in the third 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 three months For the nine months
ended August 31, ended August 31,
---------------------- ---------------------
2005 2004 2005 2004
--------- --------- --------- ---------
(unaudited) (unaudited) (unaudited) (unaudited)


Revenues $ 4,346 $ 3,924 $ 12,578 $ 12,111

Cost of sales 971 903 2,825 2,702
--------- --------- --------- ---------

Gross profit 3,375 3,021 9,753 9,409
--------- --------- --------- ---------

Operating expenses
Selling and
marketing 1,262 1,145 3,785 3,640
Research and
development 812 754 2,394 2,357
Administrative
and other 1,112 1,024 3,387 2,951
Amortization of
plant and
equipment 66 85 195 264
--------- --------- --------- ---------
3,252 3,008 9,761 9,212
--------- --------- --------- ---------

Income (loss)
from operations 123 13 (8) 197

Other
income/(expenses)
Interest expense (49) (32) (135) (115)
Foreign exchange
loss (138) (120) (51) (7)
--------- --------- --------- ---------
(187) (152) (186) (122)
--------- --------- --------- ---------

Net income
(loss) for the
period $ (64) $ (139) $ (194) $ 75
--------- --------- --------- ---------
--------- --------- --------- ---------


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