StockMarketWire.com - Enterprise software group Sopheon posted a modest first-half profit as it placed more emphasis on software-as-a-service model.

Pre-tax profit for the six months through June increased to $0.52 million, up from $0.48 million year-on-year.

Revenue rose 19% to $16.5 million and adjusted earnings before interest, tax, depreciation and amortisation rose to $2.8 million, up from $2.6 million.

Sopheon did not declare an interim dividend.

Looking forward, it said full-year revenue visibility was now at $31.2 million, compared to $25.5 million at the same time last year.

'Last year we embarked on a strategy to migrate to a recurring revenue model by prioritizing SaaS contracts for new customers and encouraging existing customers to convert,' executive chairman Andy Michuda said.

'It is very rewarding to report rising commercial traction across our core performance metrics.'

'As expected, profit levels are rising more slowly through the SaaS transition period, reflecting the switch of revenue model and the rising investment in the business.'

'Our key financial metrics and progress against strategic initiatives, coupled with our substantial cash reserves give us confidence that we are on the right path to deliver strong long term shareholder value.'


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