Basel, Switzerland – August 22, 2007
Day Software (SWX: DAYN, OTCQX:DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the first half of 2007.
Highlights
- Total revenue increased 26% to CHF 12 million as compared to the first half of 2006.
- 46% increase in license revenue compared to the first half of 2006.
- Net income for the first half of 2007 was CHF 4.79 million, including the effects of a deferred tax benefit.
- Pretax income increased to CHF 1.45 million for the fist half of 2007, a 95% increase over pretax income in the first half of 2006.
- Improved cash balance up to CHF 13.5 million compared to CHF 8.5 million at beginning of the year.
- Launched new, standalone Digital Asset Management product and legacy repository connectors.
- New major customers added in the first half of 2007 include AARP, Concordia, DAB Bank, E-Plus, General Motors, Invitrogen, LeapFrog, NBC Universal, Oklahoma University, Vodafone, Zurich Cantonal Bank (ZKB).
For the First Half of 2007, Day reported a 26% growth in total revenue over the same period in 2006. Revenues for the First Half totaled CHF 12 million, compared with revenues of CHF 9.55 million for the First Half of 2006. License revenues increased by 46% over last year, totaling CHF 5.01 million, compared with license of CHF 3.44 million for the same period last year. The company increased its gross profit to CHF 8.72 million compared to CHF 7.15 million for the same period in the previous year.
Net income for the first half of 2007 was CHF 4.79 million, which includes a tax benefit as a result of the company’s current profitability and the historical net operating loss carry forward. Day reported pretax income CHF 1.45 million for the first half of 2007 compared to pretax income of TCHF 744 for the same period in 2006, an increase of 95%. In addition, the company generated CHF 4.9 million of positive cash flow during the first half of 2007.
“We are very pleased with the strong results for the first half of 2007. We continued our profitable revenue growth and almost doubled the net income of the company. The company won major new customers in all of our regions and added revenues from the indirect sales channels with leading companies such as Oracle, IBM and FAST,” said Michael Moppert, CEO and Chairman of Day.
“The healthy results of the first half year give us a positive outlook for all of our regions and stable basis for the continuation of our growth in the second half of 2007,” continued Moppert. “We see solid momentum with each of our product lines: The recognition of Web Content Management as a strategic enterprise requirement drives the growth of our core market. The need to manage rich media content creates demand for our new Digital Asset Management solution. Our standards-based connector technology enables customers to manage content from various sources and our java content repository provides them with an attractive, innovative technology to drive repository consolidation, reduce complexity and save cost. Based on this well-rounded product portfolio we expect to see continued revenue growth from both our direct distribution and our emerging indirect channel business in the second half of 2007.”
Enterprise Customers. In the first half, the company added several new customers in all regions, representing various key verticals. The Media and Entertainment sector continued to be an important market for Day with NBC Universal added as a new customer. NBC Universal is one of the world's leading companies in the development, production, and marketing of entertainment, news, and information to a global audience. The company owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks.
In the automotive sector Day added General Motors as a new customer. General Motors’ first project using Day’s technology will be the creation of an online platform for pre-owned cars. In financial services, the company added DAB Bank and Zurich Cantonal Bank (ZKB), Switzerland’s third largest bank. In higher education Day signed Oklahoma University. In the telecommunications sector, Day added Vodafone and E-Plus. Day expanded its presence in the public sector with Thales Group in Germany. Thales is a leading international electronics and systems group, serving defense, aerospace and security markets worldwide. Thales represents a new CRX (Content Repository Extreme) enterprise account for Day.
Other new customers added in the first half of 2007 include AARP, Invitrogen, and LeapFrog.
Channel Customers. The company continued to generate channel revenues in the first half of 2007 from agreements with industry leaders such as IBM/FileNet, FAST and Oracle, among others. Day’s OEM agreement with FileNet provides Web Content Management capabilities for the FileNet P8 platform, enabling FileNet’s customers to leverage the power of Java Content Repository (JCR)-standard technology and new Web-centric innovations within the FileNet P8 platform. Day’s agreement with Oracle delivers JCR-compliant (JSR 170) connectivity to legacy repositories, providing standardized access. With FAST, Day provides both connectivity and JSR 170 enablement for FAST’s enterprise search products.
Continued Diversification of Product Portfolio. The Company expanded its product portfolio with solutions that include the industry’s first standards-based Digital Asset Management system. Known as CQ DAM, Communiqué Digital Asset Management provides centralized management for all digital media files and essential metadata information, all within the context of creative workflows. By providing efficient asset management through a standardized central repository for all departments in the enterprise, CQ DAM extends the value of rich media. The product also leverages Web 2.0 design features such as an AJAX user interface, making ease-of-use a key benefit.
In the first half Day also released new versions of its current products, Communiqué Web Content Management 4.2 (CQ WCM) and Content Repository Extreme (CRX) 1.3.1, the only native JCR (JSR 170) standard compliant enterprise content management solution and Java Content Repository available on the market today. These latest releases of CQ WCM and CRX contain key enhancements that are directed towards an even better usability for all users – authors, administrators, and developers, and improvements scalability and performance – to further facilitate all tasks related to the content life cycle in a global enterprise. Specific enhancements include SAP portal integration and synchronization with Day’s connector products providing an easy start to connect to third party repositories by using JCR connectors.
Also in the first half, the Company released a series of standards-based connectors that enable customers to leverage enterprise content that resides in legacy repositories from EMC/Documentum, Interwoven, Lotus, MS Sharepoint, Vignette and others. In addition Day awarded “Data Migration” certification to the Quatico Content Importer (QCI) to provide efficient, cost-effective migrations of legacy data from OpenText/Obtree C4 into Day Communiqué. This certification will ensure that former Obtree customers can seamlessly upgrade to Day Communiqué.
Technology Leadership. Under the leadership of Day’s CTO, David Nuescheler, the version 2.0 of the Content Repository for Java Technology API has been successfully moved to Public Review. As the head of this global initiative, Day Software hosted a face-to-face meeting in Basel, Switzerland, for the expert group that jointly develops JSR 283 (successor to JSR 170). Participating companies included BEA, EMC, FileNet, IBM, SUN, Oracle and many others. The next version of the standard will help to further improve the interoperability of content applications and content repositories.
The expert group discussed key elements for version 2.0 of the Content Repository for Java Technology API such as access control management, workspace and node-type management in addition to retention aspects of content or cross repository aspects. The latest version provides improved interoperability within the content repository through the addition of new standardized node types like meta information and internationalization.
About Day
Day is a leading provider of integrated content, portal and digital asset management software. Day's technology Communiqué offers a comprehensive, rapidly deployable framework to unify and manage all digital business data, systems, applications and processes through the web.
Day is an international company, founded in 1993, and listed on the SWX Swiss Exchange (SWX:DAYN) since April 2000. Day shares are also traded Over the Counter (OTC) in the form of American Depositary Receipts (OTCQX:DYIHY). Day's customers are some of the largest global corporations and include Audi, DaimlerChrysler, Deutsche Post World Net, Deutsche Bank, InterContinental Hotels Group, McDonald’s and Volkswagen.
A warning regarding forward-looking statements
This press release may contain forward-looking statements regarding future events or the future performance of Day Software Holding AG and its subsidiaries (the "Company"). Words such as “expects,” “plans,” “believes,” “may,” “will,” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements speak only as of the date hereof. Such information is subject to change, and we will not necessarily inform you of such changes. Actual events or results, of course, could differ materially and adversely from those expressed in any forward-looking statement. The Company does not make filings (e.g., Forms 10-K and 10-Q) with the Securities and Exchange Commission under the Securities Exchange Act of 1934.
For further information
Peter Nachbur
Day Software AG
Barfuesserplatz 6
4001 Basel, Switzerland
T +41 61 226 98 98
peter.nachbur@day.com
Katie Eakins
LEWIS PR for Day Software
T +1 619 516 2559
day@lewispr.com
The complete Financial Results for First Half Year for Fiscal Year 2007 is on file with the SWX and is available from the Investor Relations section of our web site.
The English text of this press release represents the binding version.
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 Day Results H1 2007 EN |
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