Day Software (SWX: DAYN), a leading provider of global content management and content infrastructure software, today announced financial results for the First Quarter of 2005.
Highlights:
12% total revenue increase as compared to the first quarter of 2004
27% product revenue increase as compared to the first quarter of 2004
CHF 0.3 million increase in gross profit margin as compared to the first quarter of 2004
Net income of TCHF 120 as compared to a net loss of TCHF 515 for the first quarter of 2004
New major customers added in the first quarter of 2005 include Credit Suisse First Boston, Deutsche Bank and On Command.
Successful Beta launch of Company’s new content infrastructure product line CRX.
The company experienced a record First Quarter, reporting a 12% growth in total revenue over the same period in 2004. Revenues for the First Quarter totaled CHF 4.13 million, compared with revenues of CHF 3.68 million for the First Quarter of 2004.
Product revenues increased by 27% over last year, totaling CHF 2.93 million, compared with product revenues of CHF 2.31 million for the same period last year. The company increased its gross profit to CHF 3.04 million compared to CHF 2.69 million for the same period in the previous year. Net income for Q1 was TCHF 120 compared to a loss of TCHF 515 in 2004. EBITDA was TCHF 395.
“We are pleased with the solid result for the first quarter. This is a good basis for a healthy 2005,” said Michael Moppert, CEO and Chairman of Day. “The company has delivered the highest First Quarter year product revenue in its operating history. We have added new major blue chip customers, such as Credit Suisse First Boston (CSFB), Deutsche Bank (DB) or On Command. With CSFB and DB we continued to strengthen our position in the financial services industry. At the same time we continued to work with existing industry heavyweights such as DaimlerChrysler and DHL.”
Credit Suisse First Boston chose Day Software’s flagship product Communiqué to develop a worldwide enterprise system to provide CSFB employees with current internal information. Day Software is working with CSFB in New York to develop and deploy the system. Deutsche Bank’s Enterprise Services Group in London selected Day’s Communiqué as new corporate web platform for DB. On Command Corporation is the world’s leading provider of interactive in-room entertainment, information and business services to the lodging industry. On Command chose Day’s technology to provide one single, comprehensive platform for operations in more than 20 countries on five continents.
Successful Beta launch of new product line
In addition to its continued growth in the global content management market, Day Software successfully launched the Beta version of its new content infrastructure product line CRX in the first quarter of 2005. CRX is the industry’s first full implementation of JSR 170, the future standard for enterprise content. The company reported over 500 downloads in the first 100 days of the launch, over a dozen Beta customers and the first commercial contract for the new product line. The company expects that CRX has a similar market potential as its existing content management products.
“We are excited about the excellent start of this launch. We have made substantial investments to initiate and lead JSR 170, the coming new global standard for Enterprise Content. We have developed our own products in parallel and are on track to position Day Software as the leader in the emerging market for Java Content Repositories and benefit from our investments. We are now getting ready for the final release of JSR 170 this summer to make the full version of our CRX product line commercially available. We believe that this expansion of our product portfolio will be an excellent basis for further growth,” continued Moppert.
JSR 170 is the coming standard that defines the interaction between a business application and the repository where the application stores content. Day Software has initialized this standard three years ago and is leading an international industry expert group that develops JSR 170. The JSR 170 initiative has gained the support of all major industry players such as IBM, Oracle, Sun or SAP. The final release of the standard is expected for Q2 2005. In parallel with the final release of the standard Day Software will make a full commercial implementation of the standard available to the industry.
Level I American Depositary Receipt Program (ADR)
In parallel with its Q1 results Day Software announced the launch of a Level I American Depositary Receipt Program. The Program enables the company to register an American Depositary Receipt (ADR) with the Securities and Exchange Commission (SEC). Day is working with The Bank of New York to establish and manage the ADR.
“Based on continued wins of blue chip customers, our technology leadership that we demonstrated with JSR 170 and our highly innovative new product line we are experiencing increasing interest from global technology investors. The US has the largest amount of technology investors in our software sector and the Level I ADR is a first step to addressing this market,” Michael Moppert explained.
The level I ADR program does create only minimal additional reporting obligations as Day Software is already reporting quarterly financial results according to USGAAP.
