Business News
Day Reports Financial Results for First Quarter for Fiscal Year 2008
Wednesday 14. May 2008 - Company announces continued growth, sound profitability and record license revenues
Day Software Holding AG (SWX:DAYN, OTCQX:DYIHY), a leading provider of global content management software, today announced financial results for the first quarter ending March 31, 2008.
Financial Summary:
Total Revenue of CHF 7.4 million
License Revenue of CHF 4.3 million
Gross Profit of CHF 5.9 million
Pre-Tax Income of TCHF 507
The Company reported a record first quarter, achieving a 15% growth in total revenue over the same period in 2007. Revenues for the first quarter totaled CHF 7.4 million, compared with revenues of CHF 6.4 million for the first quarter of 2007. License revenues increased by 39% over last year, totaling CHF 4.3 million, compared with license revenues of CHF 3.1 million for the same period last year. The Company increased its gross profit to CHF 5.9 million compared to CHF 4.8 million for the same period in the previous year. Pre-tax income for Q1 2008 was TCHF 507, compared to CHF 1.3 million in the first quarter of 2007. The company remains debt free, and cash balance increased to CHF 12.3 million, compared to a balance of CHF 11.5 million at the end of previous quarter.
“We are excited about the momentum of the company. Day is clearly gaining market share: In the first quarter of 2008 we have seen the highest license revenues in the history of the company – while several of our competitors announced declining license revenues. The acceleration of our license revenue growth is based on our vision to be the leading provider of standards-based content solutions – compared to other vendors who continue to focus on their proprietary legacy systems,” said Michael Moppert, CEO and chairman of Day. “We are pleased that the overall business activity was particularly strong in the U.S., with excellent activity in the U.K. and on the continent. So far we have not seen signs of an economic slow down in our markets.”
“Service revenue for the quarter was below last year’s results for the same period as we have been busy organizing several large engagements for the year, giving us a solid basis for the development of our services business going forward. We also made investments in our support infrastructure to better serve our growing global customer base. As a result of these two factors net income for the first quarter was below last year’s result. Based on the current business activity we expect a continuation of our growth with solid profitability for the remainder of the year,” Moppert concluded.
Day added several new customers in the quarter, representing a number of vertical markets. Day expanded its presence in the public sector with City of Chicago. In hospitality Day added Messe Frankfurt, the world’s largest trade fair organizer with its own exhibition grounds. The Group has a presence in 150 countries and at more than 30 exhibition sites. In higher education Day added University of Phoenix, the largest private university in North America.
Other new customers in key verticals include Allianz, Flagstar Bank and Pacific Life in the financial services industry. Founded in 1890, the Allianz Group is one of the leading global services providers in insurance, banking and asset management. With approximately 181,000 employees worldwide the Allianz Group serves more than 80 million customers in about 70 countries. Flagstar Bank, headquartered in Troy, Michigan, has assets approaching $16 billion and is a growing, successful community bank with approximately 165 banking centers in Michigan, Indiana and Georgia. Pacific Life, founded in 1868, provides life insurance products, annuities and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 50 largest U.S. companies as clients. Several of Day’s existing customers also made additional investments in its technology, including Deutsche Post World Net, Edmunds.com, Nielsen and Nissan.
The Company continued to generate channel revenues in the first quarter 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 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.