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Day Software Holding AG (SWF:DAYN) Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
Company increases half year revenues and cash, wins key new customers and partners
Basel, Switzerland - August 27, 2008 - 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 2008.
Highlights
- Product revenues increased 17% as compared to the first half of 2007. - New major customers added in the first half of 2008 include Time Inc., Allianz, Pacific Life, Investec, New York University, Premier Inn, City of Chicago, Messe Frankfurt, University of Phoenix and Flagstar Bank. - Existing customers making additional investments include Deutsche Post World Net, Nissan, The Nielsen Company, K&H Bank, Edmunds.com and Sonova. - New channel partners in the first half of 2008 included HP/Exstream.
For the first half of 2008, Day reported a 10% growth in total revenue over the same period in 2007. Revenues for the first half totaled CHF 13.24 million, compared with revenues of CHF 11.99 million for the first half of 2007. Product related revenues increased by 17%, totaling CHF 10.2 million compared with CHF 8.7 million for the same period last year. Total license revenue grew 15% over the same period last year. During that same period, consulting services revenues decreased 7%. The company increased its gross profit by 15.3% to CHF 10.1 million, compared to CHF 8.7 million for the same period in the previous year, but did experience a decrease in pretax income.
The company experienced a net loss of TCHF 401, and a pretax loss of TCHF 372 for the first half of 2008. In addition to the negative impact caused by the devaluation of the US dollar, this loss was primarily due to lower consulting services revenue resulting from the redirection of services resources to non-billable R&D activities, to assist in field testing for a major product roll-out in the fourth quarter of 2008.
"Despite all of the challenges the company faced in the first half of the year - preparing for major product launches in the second half - we managed to continue our revenue growth and add major new customers in all regions," said Erik Hansen, CEO of Day. "We are content with the 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 and create rich media content creates demand for our Digital Asset Management and social collaboration solutions. 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. Based on this well-rounded product portfolio, we expect to see continued growth from both our direct distribution and our indirect channel in the second half of 2008."
"Service revenue for the half year was below last year's results for the same period, as we made investments in R&D to support beta customer sites for a major product rollout we'll have in October. It is expected that the non-billable consulting work at these worldwide, distributed beta sites will conclude at the end of the third quarter 2008. As a result of these factors, net income for the first half was below last year's result," Hansen concluded.
Enterprise Customers. In the first half, the company added several new customers representing various key verticals. Day expanded its presence in the media sector with Time Inc. Time, a Time Warner company, is one of the largest content companies in the world. With a portfolio of more than 120 magazines, Time's popular brands and successful franchises extend to online, television, cable VOD, satellite radio, mobile devices, events and branded products. Each month, one out of every two American adults reads a Time Inc. magazine, and one out of every seven who are online visits a company Web site.
In higher education, Day added New York University. Founded in 1831, NYU is now one of the largest private universities in the United States. NYU has an enrollment of more than 40,000 students attending 14 schools and colleges at five major centers in Manhattan and in more than 25 countries around the world. In hospitality, Day added Premier Inn. With 500 hotels across the UK, Premier Inn is the UK's biggest hotel chain.
In financial services, Day added Investec. Investec is an international, specialist banking group that provides a diverse range of financial products and services to a niche client base in three principal markets: the United Kingdom, South Africa and Australia, as well as other geographies. Other new customers in the first half of 2008 in key verticals include City of Chicago, Messe Frankfurt, University of Phoenix, Allianz, Flagstar Bank and Pacific Life. Several of Day's existing customers also made additional investments in its technology, including K&H Bank, Sonova, Deutsche Post World Net, Edmunds.com, Nielsen and Nissan.
Channel Customers. The Company continued to generate channel revenues in the first half of 2008 from agreements with industry leaders such as IBM/FileNet, Microsoft/FAST and Oracle, among others. A new OEM agreement was signed in the first quarter with Exstream Software, a subsidiary of Hewlett Packard. Under the terms of the agreement, Exstream will bundle Day's technology - CRX Repository, Communiqué (CQ) Workflow, and CQ User Interface - with its Dialogue(TM) and Dialogue Live(TM) products, empowering customers to build content-centric interactive applications regardless of location, format, or language.
Continued Diversification of Product Portfolio. In the first half of 2008, Day released new versions of its current products, Content Repository Extreme (CRX) 1.4, 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.
Technology Leadership. Under the leadership of Day's CTO, David Nuescheler, 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 developed JSR 283 (successor to JSR 170). Participating companies included BEA, EMC, FileNet, IBM, SUN and Oracle. 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 - www.day.com
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
