ISELIN, N.J., April 15, 2008 (PRIME NEWSWIRE) -- SoftNet Technology Corp. (OTCBB:STTC) (German WKN:TG6) announced today its 2007 results.
SoftNet recorded record revenue of $8.6 million for the 12 months ending 12/31/2007, a 39% increase over 2006 and represents the third consecutive year of double digit, record revenue growth. More importantly the Company significantly reduced its operating loss by 75% in 2007 vs. 2006.
The revenue growth achievement was noteworthy considering the Company's decision to exit the hardware resale business in Q4 2007. Had the Company retained that business the revenue results would have been higher.
Revenue growth was realized in all channels. However, the IT Infrastructure Practice, with an emphasis on data storage, was the fastest growing practice with increased engagements in existing and new clients. The Application Delivery Practice contributed late in Q4 with two new clients in the Financial Services sector.
The reduction in operating losses was achieved through tighter cost controls and G&A reductions made throughout the course of the year.
Commenting on the results, Jim Booth, CEO, stated: "Senior management is pleased with the results for the year but realizes much remains on the journey to profitability. The decision to exit the hardware resale business was clearly a decision that will benefit the Company long term. We expect to see an improvement in margins as hardware generated lower margins than professional services. Hardware also utilized a significant amount of working capital, which the Company will now use to support the growth of its services business.
"With regards to our outlook for Q1 2008, the preliminary sales results remain at a healthy level considering the revenue loss due to the discontinued hardware sales. IT Infrastructure continues to set the pace and we received a number of project extensions in the Telco business and a new client in the Life Sciences sector. Due to the impact of the sub-prime market collapse, the Financial Services sector has not generated the projects anticipated as recently as late December, which adversely affects the Application Delivery practice. In Q1 the Company continued to implement cost reduction efforts to improve cash flow and positively impact profitability. These actions included cutting non-revenue generating positions, closing an office in close proximity to the Company's headquarters in NJ, and instituting tighter expense policies and controls. These efforts, combined with an improvement in margins, are expected to have a positive impact on Q1 results," said Mr. Booth.
SoftNet Technology Corp. is a Professional Services company offering professional expertise to enterprise and service provider clients. SoftNet's services are organized in three practice specialties, including Enterprise Infrastructure Services, Application Lifecycle Management and Government Services.
Please visit our website at www.softnettechnology.com for more information or for Investor Relations, please contact the company directly at 908-212-1799, Jim Booth, CEO or Dennis Goett, CFO.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp (STTC) may differ materially from these statements due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
SoftNet Technology Corp.