Sopheon fails to convince markets
- Added:
- Mar 30, 2001
The fall signals continuing market uncertainty about Sopheon, which issued a profits warning back in December, followed by a trading statement in February that made positive noises but was short on hard information. The decline in Sopheon's value may also have an impact on Sopheon's proposed all-share takeover of privately held German firm AIT, which has yet to complete due diligence.
The company saw turnover rising 414% to 7.7m for the year, including revenues from Teltech, a developer of vertical research portals that Sopheon acquired in September 2000. However, R&D costs rose more steeply, climbing 476% to 3.24m, reflecting development on Accolade, a suite of product development tools, while costs due to administration, and sales and marketing activities rose 284% to 6.36m. Sopheon also incurred additional amortisation costs of 5.56m, which will continue to be charged over the next three years.
Over the year, the company's cash resources rose slightly, from 7.75m to 7.93m.
The AIT takeover builds on Sopheon's acquisition of Minneapolis-based provider of research and knowledge management solutions Teltech Resource Network Corporation for $34m. Sopheon has also set up a sales and development base in Denver Colorado to support US operations, giving Sopheon bases in the UK, Netherlands, Germany and North America. The company is reputedly derives 70% of its revenues from the US, making further European expansion likely.