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Software maker has yet to show its teeth

Friday 14th February 2003

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Investors are in a grouchy mood and they have dealt severely to Software of Excellence for failing to meet its rather bullish revenue and profit forecasts.

Even so the dental and medical software maker's revenues are growing fast and it will no doubt come back into fashion once it shows it can keep costs in check and pump out earnings at the bottom line.

The shares were listed in December 2000 after a float at $1. The prospectus forecast March 2002-year revenue of $14.6 million and a $2.4 million net profit. It didn't make either; revenue was only slightly off at $13.7 million but it lost $191,000.

The company is picking a breakeven result for the March 2003 year after losing $1.43 million in the first half.

Following the $2.5 million acquisition of Advanced Healthcare Computing, Britain now accounts for more than 83% of group revenues. The company is also on a major sales push into the US, with modest results so far, and its dental software is in use in Australia, Singapore, Malaysia, Ireland, Kuwait, Saudi Arabia and Dubai.

It has also moved into the optometry software market with a contract to supply the local Visique chain.

A November rights issue aimed at raising $6.2 million brought in only $4.3 million but the company is debt-free. The main indicator to watch in the upcoming result will be operating cashflow.

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