Collaborative product development software vendor Sopheon Plc has cut its workforce by a further 70 to 190 as the Guilford, UK-based company husbands its limited financial resources in the difficult economic environment.
In a trading update for the third quarter of its current financial year, it said the pipeline of opportunities for its flagship Accolade application remains substantial with both new license and extension activity anticipated. However, its information management business has been hit by the economic climate and customer M&A activity, but Sopheon said there are signs that the business is in recovery.
House broker Seymour Piercesaid it expects revenue this year to dip 1.6% to 13.7m pounds ($21.2m), but with the sharp workforce reductions, pre-tax losses are expected to more than halve to 16m pounds ($24.8m).
At some stage Sopheon will have to raise new funding, but with a stock market valuation of just 6.6m pounds ($10.2m), it remains vulnerable to a takeover.