Sopheon shares soar as profits to 'significantly' beat estimates

Shares in software firm Sopheon soared on Monday as the company said full year profits would be "significantly" ahead of expectations.

In a statement, the company added that revenue would be "comfortably" ahead of forecasts to $28m from $23m.

Sopheon said both EBITDA and pre-tax profits would be significantly ahead of current market expectations. The year-end net cash position is expected to be $9.5m compared with $4.2m ion 2016.

"On 4 January 2018 we reported that continued momentum and market recognition had led to solid growth in 2017, with particular strength in the closing weeks of the year," Sopheon said.

"Final quarter performance included signing two substantial deals, one in the USA and one in Germany, each with a multinational enterprise that is an undisputed leader in its field."

Transaction volume increased to 59 license deals from 49 includes three new "software as a service" customers, enhancing recurring revenue.

"In addition to its impact on 2017, the business performance described above contributes to a higher recurring revenue base going forward, a higher services backlog, and further license events driven by the fourth quarter signings," the company said.