For Immediate Release
September 20, 2004
Software of Excellence expects a profitable year
Dental software company Software of Excellence expects to produce a good result in the current year, chairman Jim Syme
told shareholders at the company's annual meeting today.
"In terms of the current half-year, we have continued to operate profitably with operating EBITDA growth ahead of
forecast at10% of sales and a small profit before tax (last year's half year to 30 September 2003 was a loss of $1.05
million).
"That is good news, given that this includes the summer trading period in the UK, which is traditionally the slowest
time of the year for us," he said
Once again it was expected that the greater part of the company's result would be generated in the final quarter of the
current March year.
"We are continuing to experience a steady rise in our UK recurring income, so subject to currency factors and our
income recognition standards on large contracts. Your board expects the current full year to be a good one."
He said the company was continuing to carefully address the big opportunities it faced in the UK. For example, it was
supplying its dental software to both Prime contractors involved in pilot programmes for the introduction of health IT
into the UK Ministry of Defence.
The company was also involved in another pilot with the Indian Health Service in the US. Such contracts involved long
lead times and in both instances management had been talking to the parties involved for more than three years.
He said the company was now well placed to achieve its growth goals with its balance sheet strengthening by the recent
successful raising of $9.5 million through an issue of 7% mandatory convertible notes. Of this $3.8 million had been
used to purchase the United States dental software company, General System Design Inc (GSD), leaving some $6 million on
deposit.
He said that the takeover of GSD was a strategic event for the company as it gave it the positioning it needed to
succeed in the dental school market, not just in the US, but globally.
The company's US operation was currently operating at a cash flow breakeven level and the addition of GSD's 16 dental
schools provided a great platform for the US operation to move forward.
ENDS