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magazineSopheon drip feeds the good news
SOPHEON (SPE:AIM) 574p
Gain to date: 73.9%
Original entry point: Buy at 330p, 22 June 2017
Drip feeding information into the market may not be for everyone but Sopheon (SPE:AIM) investors won’t be complaining, certainly not after the latest update and share price spike on 29 January, with a 16.5% jump to a record 574p.
That came after the software platform designer reveal a $2m forecast revenue beat for 2017, confirming $28m versus expectations of $26m.
Sopheon is the innovation management solutions supplier we first flagged back in June. It helps enterprises manage all aspects of new product development lifecycles, allowing customers to make smarter decisions about which products to develop and how to bring them to market faster.
This latest share price surge adds to a 28.5% hike on 4 January.
We now learn that 59 new licence agreements were signed in 2017, up from 49 in 2016, including two large deals.
With $9.5m of net cash and $18m of 2018 sales already in the bag, near-term prospects and share price momentum look very much on the front foot.
We still don’t know what this means for pre-tax profit, previously pitched at $3m by FinnCap, an estimate that was retired in early January.
Decent operating leverage should see plenty of revenue translated into profit. It is a good reason to be optimistic about full year results on 22 March.
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