ISELIN, N.J., Nov. 19, 2008 (GLOBE NEWSWIRE) -- SoftNet Technology Corp. (OTCBB:SOFN) (German WKN:TG6) announced today it had submitted a timely filing of the Q3 2008 results and secured a new, potentially lucrative Application Lifecycle engagement.
Commenting on the results, Mr. James Booth, President and Interim CEO, reported, "The G&A reductions implemented the prior two quarters showed through in Q3 and had an extremely positive impact on our progress to achieve profitability. Of the reported Q3 2008 loss, more than an 80% reduction compared to the same period prior year, a significant amount was due to non cash accounting charges and bad debt write offs from prior periods. The Company is now clearly poised for a major break through. We are disappointed in the revenue during the quarter which is reflective of the overall economic conditions in one of the Company's core sectors, financial services, as well as a reduction in projects from one of the Company's key OEM customers. These conditions are likely to continue until late Q1 2009. However, management continues to pursue opportunities in the Value Added Reseller (VAR) segment as these potential clients view professional services as a natural extension to their current offerings to increase revenue. The Company is focused on expanding the customer base and the VAR market and Application Lifecycle Management segment are areas of potential new sources of revenue."
The Company also secured a new engagement in the Lifecycle Management practice. The project includes an initial 5-6 month development phase which is currently in process. Once completed and launched, the agreement also includes on-going support and maintenance for the project linked to volume. When successful, the monthly recurring revenue could have a major positive impact on revenue and margins. "The sales and delivery forecast for this engagement is significant, and as such, management will be supporting it and devoting the required resources to ensure it is a complete success," said Jim Booth, President.
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, President.
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