Basel, Switzerland – February 20, 2008

Day Software Holding AG (SWX: DAYN, OTC:DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the fiscal year ending December 31, 2007. 

Financial Summary 2007

• Annual revenue increased 28%
• Software license revenue increased 28%
• Pre-tax income increased 55%
• New customers added in fourth quarter 2007 include Chanel, Nielsen, Belo, Mettler Toledo, Sounds True and UNHCR

Total revenue for the fiscal year 2007 was CHF 26.44 million, compared with revenues of CHF 20.61 million for the previous year, an increase of 28%. License revenues for the fiscal year 2007 totaled CHF 10.53 million, versus license revenues for the previous year of CHF 8.24 million. Product Support and Services revenue for the fiscal year 2007 was CHF 15.92 million, compared to CHF 12.37 million the prior year. Pre-tax income for the fiscal year 2007 was CHF 2.94 million compared to pre-tax income of CHF 1.9 million for the prior year, an increase of 55%. Net income increased to CHF 7.0 million, including the benefit from deferred tax assets. The diluted earnings per share (EPS) was CHF 4.60 for the current fiscal year, compared to 1.31 for the previous year.

”2007 was another record year for Day. We continued to gain market share and grew both revenues and income significantly. The strong performance of the company will enable us to make investments in key areas such as sales and marketing and customer support to continue our growth in 2008,” said Michael Moppert, CEO and Chairman of Day. “We believe that Day Software is very well positioned to benefit from a number of positive trends: The ongoing consolidation in our sector reduces the numbers of competitors - while the demand for proven Content Management Solutions is growing. Our leadership in the area of Java Content Repository technology has significantly raised our visibility as a thought leader throughout the industry. Our involvement with the open source community has proven to be a very efficient way to improve our products, generate awareness and leads. The successful diversification of our product portfolio allows us to compete in several attractive market segments. Based on these elements, we have gained strong momentum as a company and expect to continue our profitable growth in 2008 and beyond.”

Enterprise Customers
In 2007, 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 Belo Corp., Nielsen and NBC Universal joining as new customers. Belo Corp. is the leading news and information, with more than 30 million people a week watching Belo's television stations, reading its newspapers, or visiting its Web sites. Nielsen is the leading global provider of marketing research information services. Nielsen’s clients include virtually all the world’s leading manufacturers and retailers of consumer packaged goods, as well as companies that market other consumer products and services. 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.
 
In the manufacturing sector, Day added global leaders General Motors and Mettler Toledo as new customers. General Motors’ first project using Day’s technology will be the creation of an online platform for pre-owned cars. Mettler Toledo is a global manufacturer of precision instruments for use in laboratory, industrial and food retailing applications. In financial services, the company added DAB Bank and Zurich Cantonal Bank (ZKB), Switzerland’s third largest bank. 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. In the US, AARP is redeploying all of their Web channels leveraging Day’s Communiqué. The non-profit, non-partisan membership organization is assisting people 50+ years of age. In higher education Day signed Oklahoma University.

Day convinced also the Office of the United Nations High Commissioner for Refugees. UNHCR was established by the U.N. General Assembly in 1950 to provide protection and assistance to refugees and Internally Displaced People (IDPs). Today, UNHCR is one of the world's principal humanitarian agencies, its staff of more than 6,500 personnel helping more than 20 million people in more than 120 countries. Staff members work in a diversity of locations and conditions including in our Geneva-based Headquarters (HQ) and several field (Field) locations.

Other new customers added in 2007 include A.C. Nielsen, Chanel, Concordia, Invitrogen, LeapFrog, Pennwell Publishing, Sigma-Aldrich and Sounds True. Several of Day’s existing customers also made additional investments in its technology including, Swiss Post, Sauter AG, Kyocera and Voestalpine, Volkswagen AG, and PagesJaunes in France.

Channel Customers
The company continued to generate channel revenues in 2007 from agreements with industry leaders such as IBM/FileNet, FAST and Oracle, among others. Day expanded its technology relationship with IBM by joining the IBM ECM ValueNet Partner Program. Day’s Communiqué Web Content Management (CQ WCM) and Communiqué Digital Asset Management (CQ DAM) applications have been integrated with IBM FileNet P8 providing customers worldwide with a single comprehensive solution for managing digital content.

Day’s OEM agreement with IBM/FileNet continues to provide 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.

Oracle now offers Day’s JCR/JSR 170-compliant connectors to facilitate integration between Oracle® WebCenter and leading third-party content repositories, such as EMC Documentum and Microsoft SharePoint. With FAST, Day provides both connectivity and JSR 170 enablement for FAST’s enterprise search products. These partnerships further validate Day’s leadership in the content applications market, and the emerging market of standardized Java Content Repositories and Web-centric content technologies.

Successful Product Launches
The company continued to deliver on its move to a multi-application, enterprise software company by significantly expanding its product portfolio. Day’s leadership in the web content management space was enhanced with solutions that include the industry’s first standards-based Digital Asset Management system. Known as CQ DAM, Communiqué Digital Asset Management provides efficient asset management through a standardized central repository for all departments in the enterprise, extending the value of rich media.

Day also delivered a brand new Web 2.0 collaboration solution. Communiqué Advanced Collaboration (CQ AC) offers wiki, blog, and calendar functionality, providing centralized management for social media and essential metadata information, CQ AC enables connectivity to social computing, social networking and user participation. These new products leverage Web 2.0 design features, such as an AJAX user interface, making ease-of-use a key benefit.
 
As part of its content integration family of products, 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 2007, 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.

Industry & Technology Leadership
Day leveraged its fifth annual Global Content Management Summit in Basel, Switzerland, where executives from leading companies around the world, such as Audi, General Motors, Merck, McDonalds, Volkswagen and many others gathered to share best practices about managing enterprise content on a global scale.

Under the leadership of Day’s CTO, David Nuescheler, the version 2.0 of the Content Repository for Java Technology API has successfully cleared 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, Daimler, 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.  There is currently no public trading market in the United States for the Company's stock, and 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 English text of this press release represents the binding version.