Day Delivers 65% License Growth for 2H 09

Basel, Switzerland and Boston, Massachusetts – 10 February 2010 – Day Software Holding AG (SIX: DAYN, OTCQX: DYIHY), a leading provider of content management and content infrastructure software, today announced financial results for the second half and year ended December 31, 2009.  The year saw Day Software win major new customers, expand into new regional markets, and build a stronger distribution channel through new partnerships with leading interactive agencies and global systems integrators.  Capitalizing on growing investment in the Web channel for customer engagement, acquisition, and retention, Day Software built new momentum with its award-winning CQ5 platform and delivered strong growth and operating results.

Day reported total license revenue of CHF 9.2M for the second half of 2009, an increase of 65% from total license revenue of CHF 5.6M in the second half of 2008.  Total license revenue for 2009 was CHF 16.5M against CHF 11.3M in 2008, an increase of 45%, and total revenue for 2009 of CHF 36.3M, an increase of 31% over total revenues of CHF 27.8M in 2008.  Cash increased 72% from a total of CHF 12.8M at the end of 2008 to CHF 22.0M as of December 31, 2009.  For the year, Day reported operating income of CHF 4.2M, equal to an 11% margin.  Day also reported earnings per share of CHF 1.82, an improvement over a per-share loss of CHF 4.55 in 2008.  

“In 2009, we invested in people, products, and partners to take our new CQ5 platform to market and drive growth,” said Day Software CEO Erik Hansen.  “The increased importance of the Web channel as a business growth driver and the rise of cloud computing and social media are creating strong demand for a new class of content management solutions, a class pioneered by Day’s CQ5.”  Hansen continued, “We pursued this opportunity with great focus in 2009, stressing smart investments in sales and marketing, strong operational excellence, and expansion of the entire ecosystem of partners and solutions around our products.  We are pleased how this has ignited Day Software in 2009 and delivered strong results.”

Customer Success Highlights

Day secured 49 major new customer wins in 2009, gaining new traction in Day’s traditional markets and building significant momentum in newly opened sales regions.  Select new wins include:

North America:  Adobe, General Motors (GM), Department of Defense (Army), Newsweek, MTV Networks, Columbia University, Newedge, United Nations Development Program (UNDP), Rosetta Stone, Cooper Industries, Government of New Brunswick, Ingersoll Rand

• Germany, Austria, Switzerland:  Boehringer Ingelheim, Viessmann, Fraport, Fraunhofer, AMAG, SIKA, Hybris, Kanton Bern, Sympany
• U.K. and Northern Europe:  Virgin Media, WGSN, John Lewis Partnership, Royal Bank of Scotland (RBS), Audi UK, Associated Northcliff Digital (Daily Mail), Grundfos
• France and Italy:  LaRedoute, Louis Vuitton, Accor, Telecom Italia, Prenatal, Esselunga
• Asia-Pacific:  Starhub, Government of Singapore

In addition to new wins, Day saw major re-orders from strong installed base uptake of CQ5, which at the close of 2009 is Day’s most widely deployed platform with the fastest rate of adoption against all prior release versions.  Notable customer re-orders include:  Daimler, Volkswagen, Nissan, Investec, Clifford Chance, Banque Postale, Williams-Sonoma, F5 Networks, City of Chicago, and InterContinental Hotel Group (IHG).

Product and Industry Leadership Highlights

Building on the success of Day’s November 2008 release of its inaugural CQ5 platform, CQ 5.1 Web Content Management (WCM), Day innovated a new online distribution model for its core standards-based Enterprise Content Management (ECM) platform, CRX, in January 2009 and launched two new enterprise offerings in March 2009 as part of its unified WCM suite, CQ 5.2 Digital Asset Management (DAM) and CQ 5.2 Social Collaboration (SoCo).  Day received critical industry acclaim from both industry press and analysts and was named a Visionary in both Gartner’s Magic Quadrant for WCM and Magic Quadrant for ECM in 2009.

Day also continued to advance and build industry support for open, standards-based Web infrastructure with its work in the Java Community Process (JCP), OASIS, and Apache Software Foundation (ASF).  In 2009, Day Software CTO David Nuescheler finalized the ratification of the JSR-283 content management standard, capping a multi-year, multi-vendor effort for defining the second generation of the seminal, Day-led JSR-170 standard.  In addition, Day led the creation of the vendor-neutral Apache Chemistry project, gathering a consortium of content management vendors to jointly develop a common reference implementation of the proposed Content Management Interoperability (CMIS) standard as a complementary adjunct to JSR-170 / JSR-283.

Partner Highlights

2009 saw Day move to a channel-led sales model with the rollout of a new worldwide partner program for leading global interactive agencies, system integrators, and regional partners.  Day drove over 60% of 2009 customer transactions through over 20 new or expanded relationships:

• Interactive Agencies:  Sapient, MRM Worldwide, LBi Nicholson, Razorfish, Digitas
• Systems Integrators:  Logica, T-Systems, Thoughtworks, Cambridge Technology Partners
• Regional Partners:  Unic, Namics, EPAM, Valtech, Cognifide, Nolte and Lauth, Acuity Group, Crown Partners, Headstand Media, Cassini, Earthbound Media Group (EMG)
  

Business Highlights

Day continued its investment in new geographies in 2009.  Building on its initial presences established in Q4 2008, Day expanded operations in the U.K. and entered the French and Italian markets in April 2009 with the opening of its new Paris and Milan offices.  Day also strengthened operations in the North American market, opening a new office in Toronto, Canada, adding sales capacity in the New York – Washington D.C. corridor, and establishing a new North America headquarters in Boston, Massachusetts. 

The year also saw continued strengthening of Day’s leadership team.  In May 2009, Day elected industry veterans David Arnott and Barry Bycoff to its Board of Directors, and in August 2009 named Mr. Bycoff Chairman of the Board.  Also in Q3 2009, Day added two new members to its executive team to build worldwide Services and Support operations to ensure rapid product adoption and continued partner and customer success in 2010.

“In a year marked by economic turbulence and uncertainty, Day executed on a strategy of focused messaging, market development, partner recruitment, and product innovation,” said Day CEO Hansen.  “As organizations around the globe invest in the Web to drive new sales and market growth, Day has seized the opportunity to win market share against legacy, incumbent vendors in the content management space and deliver solid business results.  With a focus on the bottom line, we were able to invest in our business and generate good returns due to solid execution across all departments in all geographies.”

Looking forward to 2010, CEO Hansen commented: “We plan on continued investment in products to keep our CQ5 platform at the leading edge.  We will also expand our investments in sales, marketing, and our partner ecosystem in both North America and Europe to grow our license income and maintenance revenue base.  We begin 2010 with the launch of CQ 5.3, a majorly expanded version of CQ5, and plan on continuing our focus on operational excellence to gain further market share, build on our momentum, and drive profitable growth in 2010.”

“We believe Day is strongly positioned for continued success in 2010,” concluded Hansen.  “Despite continued uncertainty in the general global economy, we look forward to reporting further news of the company’s progress during the coming year.”

For Further Information

Summary financial schedules are available on the Investor Relations section of our web site at
http://www.day.com/investors/financialreports.