DataMirror Announces Financial Results for Third Quarter of Fiscal 2003.Business Editors TORONTO--(BUSINESS WIRE)--Nov. 26, 2002 DataMirror DataMirror Corporation (TSX: DMC) provides real-time data integration, protection, and Java database solutions. Founded in 1993, DataMirror is headquartered in Markham, Ontario, Canada with offices worldwide. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DMCX) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :DMC DMC Devil May Cry (video game) DMC Detroit Medical Center DMC Darryl McDaniels (rapper) DMC Destination Management Company DMC Del Mar College (Corpus Christi, TX) ): -- Revenue increases by 10% over prior year -- Adjusted net income of $1.6 million or $0.14 per share -- Cash flow from operations of $2.1 million DataMirror, the leading provider of enterprise application integration and resiliency The ability to recover from a failure. The term may be applied to hardware, software or data. solutions, today announced its financial results for the third quarter of fiscal 2003. Revenue for the quarter ended October October: see month. 31, 2002 ("Q3 fiscal 2003") was $15,745,000, as compared to $14,352,000 for the quarter ended October 31, 2001 ("Q3 fiscal 2002"), an increase of 9.7%. Adjusted net income (excluding losses resulting from the Company's investment in PointBase, Inc. ("PointBase") and amortization of intangibles) for the quarter was $1,581,000 or $0.14 per share, as compared to adjusted income on the same basis of $988,000 or $0.09 per share for Q3 fiscal 2002, an increase of 60.0%. The GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for Q3 fiscal 2003 was $4,270,000 or ($0.38) per share compared to net loss of $764,000 or ($0.07) per share for Q3 fiscal 2002. This net loss included a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the Company's investment in PointBase of $4,595,000 or ($0.40) per share. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for Q3 fiscal 2003 was $2,062,000 or $0.18 per share. Cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments stood at $32,686,000 or $2.87 per common share at the end of the quarter. Revenue from licence sales accounted for 53.2% of total revenue in Q3 fiscal 2003 with a gross margin of 99.4%, as compared to 50.5% of total revenue and gross margin of 99.1% in Q3 fiscal 2002. Gross margin on maintenance and services was 55.9% in Q3 fiscal 2003, as compared to 55.3% in Q3 fiscal 2002. Overall gross margin for Q3 fiscal 2003 increased to 79.0% from 77.4% for Q3 fiscal 2002. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for Q3 fiscal 2003 were $11,279,000 compared to $11,208,000 for Q3 fiscal 2002, an increase of 0.6%. Total costs, including costs of revenue, were $14,578,000 for Q3 fiscal 2003, up slightly from $14,446,000 in Q3 fiscal 2002. Total headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. was 292 at October 31, 2002 as compared to 310 at October 31, 2001, and down from 324 at the end of the second quarter of fiscal 2003. Revenue for the nine months ended October 31, 2002 was $44,700,000, as compared to $41,914,000 for the nine months ended October 31, 2001, an increase of 6.6%. Adjusted net income for the nine months ended October 31, 2002 was $3,328,000 or $0.29 per share, as compared to adjusted net income of $1,468,000 or $0.13 per share for the nine months ended October, 2001, an increase of 126.7%. The GAAP net loss for the nine months ended October 31, 2002 including the write-down of the Company's investment in PointBase of $4,595,000 or ($0.40) per share was $5,403,000 or ($0.47) per share. The net loss for the nine months ended October 31, 2002 excluding the write-down of the Company's investment in PointBase was $808,000 or ($0.07) per share, as compared to a net loss of $4,283,000 or ($0.37) per share on the same basis for the nine months ended October 31, 2001. "We are pleased with our third quarter results," said Peter Cauley, CFO See Chief Financial Officer. of DataMirror. "In an environment where many software companies face declining licence revenue, we increased licence revenue by 15.6% on a year over year basis and by 7.5% on a quarter over quarter basis. Our total costs increased slightly over the second quarter, as the cost savings from the headcount realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. we undertook midway Midway, island group (2 sq mi/5.2 sq km), central Pacific, c.1,150 mi (1,850 km) NW of Honolulu, comprising Sand and Eastern islands with the surrounding atoll. Discovered by Americans in 1859, Midway was annexed in 1867. A cable station was opened in 1903. through the quarter will not be felt until the fourth quarter. Our continued commitment to controlling costs while increasing revenue caused our operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to almost double this quarter, which drove positive cash flow from operations of over $2 million for the fifth successive quarter." During the third quarter the Company added 34 new customers to our global account base, who accounted for 46% of the quarter's licence revenue. Key customer wins included: AmerUs Life Insurance Company, Equifax  This article is subject to manipulation attempts by the described entity using multiple user names. Please be critical of edits and discussion page entries.Equifax, Inc. do Brasil Ltda., Hitachi Automotive Products (USA) Inc., J.D. Edwards (J.D. Edwards & Company, Denver, CO, www.jdedwards.com) A developer of multinational, integrated enterprise software for distribution, finance, human resources, manufacturing and supply chain management. , Livit Immobilien Management AG, Lloyds TSB Lloyds TSB Group plc (LSE: LLOY) is a banking and insurance group in the United Kingdom. It was formed in 1995 by the merger of Lloyds Bank and the Trustee Savings Bank (TSB). The Group's head office is at 25 Gresham Street, London. Bank Argentina, Oxford Health Plans, Inc., The Royal Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Mint and WestCon, Inc. Existing customers such as ABN Amro ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) , American Skandia, Banc of America Securities, Behr Process Corp., Big Food Group, CitiGroup, First Horizon Home Loan, NAPA Genuine Parts and Nestle also purchased additional licences of our software during the quarter. "While customers still seem reluctant to make enterprise software decisions, our solutions offer rapid return on minimum investment, the type of fast pay-back decisions companies are willing to make," commented Nigel Stokes Stokes , William 1804-1878. British physician. Known especially for his studies of diseases of the chest and heart, he expanded on the observations of John Cheyne in describing the breathing irregularity now known as Cheyne-Stokes respiration. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DataMirror. "Our 'Simple HA for $60K' high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. promotion resulted in a number of new LiveResiliency customer wins in the third quarter and has been extended to the end of the year. Over the last several quarters we have made significant improvements to DataMirror's balance sheet and cash flow metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , reducing days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). and driving seven consecutive quarters of positive cash flow from operations. During the next year we will continue to focus on execution and on improving operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and income statement metrics. We expect cash flow and revenue growth to continue to be strong. With these goals in mind, we realigned our business during the third quarter to improve profitability and provide clear focus on the high revenue generating opportunities of our LiveBusiness solutions." Business Outlook: In the fourth quarter of fiscal 2003, DataMirror expects revenue to be in the range of $15.8 to $16.3 million. Adjusted net income (excluding amortization of intangibles) is expected to be in the range of $0.16 to $0.20 per share. GAAP net income is expected to be in the range of $0.10 to $0.14 per share. DataMirror will hold a webcast and conference call to present the results for the third quarter at 5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today, November 26, 2002. The conference call can be accessed via audio web cast by visiting http://www.datamirror.com. Participants in the conference call are asked to call 1-800-500-0311 at approximately 4:55 p.m. EST on November 26th using reservation number 564679. Participants may also view an on-line presentation during the call by visiting http://datamirror.webex.com/webex/ and clicking on the meeting "DataMirror Announces Third Quarter Results" hosted by Peter Cauley, CFO and Nigel Stokes, CEO, DataMirror. About DataMirror DataMirror (Nasdaq: DMCX; TSX: DMC), a leading provider of enterprise application integration and resiliency software, gives companies the power to manage, monitor and protect their corporate data in real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. . DataMirror's comprehensive family of LiveBusiness(TM) solutions enables customers to easily and cost-effectively capture, transform and flow data throughout the enterprise. DataMirror unlocks the experience of now(TM) by providing the instant data access, integration and availability companies require today across all computers in their business. 1,700 companies have gone live with DataMirror software including Debenhams, Energis, GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage, the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , OshKosh B'Gosh OshKosh B'Gosh is a children's apparel company founded in Oshkosh, Wisconsin in 1895. Originally a small-town manufacturer of adult work clothing, it has become best known for its children's clothing, especially bib overalls. , Priority Health, Tiffany Tiffany, Tiffanie (UK) a semi-longhaired version of the Burmese cat. It has a fine, silky coat in many colors. & Co., and Union Pacific Railroad Union Pacific Railroad, transportation company chartered (1862) by Congress to build part of the nation's first transcontinental railroad line. Under terms of the Pacific Railroads Act, the Union Pacific was authorized to build a line westward from Omaha, Nebr. . DataMirror is headquartered in Toronto, Canada, and has offices around the globe. For more information, visit www.datamirror.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this press release, including statements regarding DataMirror Corporation's business which are not historical facts, are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements of estimates, expectations, objectives and plans (financial and otherwise). The words "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Numerous factors affect DataMirror's operating results and could cause DataMirror's actual results to differ materially from the results indicated by this press release or by any forward-looking statements made by, or on behalf of, DataMirror, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: variability of quarterly operating results; dependence upon the continued growth and success of DataMirror's software products; competition; the ability to develop, market, support and acquire new products in an environment of rapidly changing technology; dependence upon continued growth in the database and enterprise data integration markets; dependence upon relationships with complementary vendors and distribution channels; the ability to recruit and retain key personnel; risks of international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , currency exchange rate fluctuations and global economic conditions; possible software errors or defects; possible infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. claims by third parties; and other factors discussed in the Company's Annual Information Form and other periodic filings with the United States Securities and Exchange Commission and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . Copyright (C) 2002 DataMirror Corporation. All rights reserved. DataMirror, LiveBusiness, iReflect, Transformation Server and The experience of now are trademarks or registered trademarks of DataMirror Corporation. All other brand or product names are trademarks or registered trademarks of their respective companies.
DataMirror Corporation
Consolidated Balance Sheets
(Thousands of CDN$)
October 31, January 31,
2002 2002
----------- -----------
Assets
Current assets
Cash and cash equivalents $6,884 $9,073
Short-term investments 25,802 27,422
Accounts receivable 10,742 12,773
Prepaid expenses 1,384 1,747
Future income taxes 1,885 1,851
----------- -----------
46,697 52,866
Capital assets 3,848 3,702
Investment tax credits recoverable 2,194 2,440
Investments 9,729 7,495
Intangibles 7,761 9,982
Goodwill 3,118 3,118
----------- -----------
$73,347 $79,603
----------- -----------
----------- -----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $4,188 $3,855
Deferred revenue 15,613 14,583
Income taxes payable 438 0
Current portion of long-term liabilities 0 1,464
Current portion of capital lease obligations 94 138
----------- -----------
20,333 20,040
Future income taxes 1,072 1,106
Capital lease obligations 56 98
----------- -----------
21,461 21,244
----------- -----------
Shareholders' Equity
Share capital
Common shares (October 31, 2002 - 11,381,125
January 31, 2002 - 11,472,027) 64,247 64,740
Cumulative translation adjustment (498) (498)
Deficit (11,863) (5,883)
----------- -----------
51,886 58,359
----------- -----------
$73,347 $79,603
----------- -----------
----------- -----------
DataMirror Corporation
Consolidated Statements of Loss
(Thousands of CDN$, except per share data - unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
------------------ -----------------
2002 2001 2002 2001
----------- ------ -------- --------
Revenue
Licence $8,382 $7,248 $23,285 $20,497
Maintenance 5,811 5,352 17,037 15,613
Services 1,552 1,752 4,378 5,804
----------- ------ -------- --------
15,745 14,352 44,700 41,914
----------- ------ -------- --------
Cost of revenue
Licence 53 64 180 197
Maintenance and services 3,246 3,174 9,543 10,300
----------- ------ -------- --------
3,299 3,238 9,723 10,497
----------- ------ -------- --------
Gross margin 12,446 11,114 34,977 31,417
----------- ------ -------- --------
Operating expenses
Selling and marketing 5,318 5,557 15,981 16,258
Research and development 2,907 2,793 8,345 8,172
General and administration 2,369 1,931 6,870 6,532
Amortization of intangibles 685 927 2,055 2,521
----------- ------ -------- --------
11,279 11,208 33,251 33,483
----------- ------ -------- --------
Operating income (loss) 1,167 (94) 1,726 (2,066)
Investment income 167 218 410 667
----------- ------ -------- --------
Income (loss) before income taxes 1,334 124 2,136 (1,399)
Income tax expense (recovery) 438 63 863 (346)
----------- ------ -------- --------
Income (loss) before the under-noted 896 61 1,273 (1,053)
Losses from investment in PointBase, Inc.
Equity loss (571) (825) (2,081) (3,230)
Impairment of equity investment (4,595) 0 (4,595) 0
----------- ------ -------- --------
Net loss ($4,270) ($764) ($5,403) ($4,283)
----------- ------ -------- --------
----------- ------ -------- --------
Basic loss per share ($0.38)($0.07) ($0.47) ($0.37)
Weighted average number of
shares outstanding (000's) 11,369 11,518 11,403 11,548
DataMirror Corporation
Consolidated Statements of Cash Flows
(Thousands of CDN$ - unaudited)
Three Months Ended Nine Months Ended
October 31, October 31,
------------------ -----------------
2002 2001 2002 2001
---------- ------- -------- --------
Cash provided by (used in)
Operating activities
Net loss ($4,270) ($764) ($5,403) ($4,283)
Add (deduct) items not affecting cash:
Amortization of capital assets 537 446 1,444 1,280
Amortization of intangibles 685 927 2,055 2,521
Losses from investment in
PointBase, Inc. 5,166 825 6,676 3,230
Future income taxes (13) 57 (65) (112)
Non-cash interest expense 13 49 73 185
Non-cash foreign exchange loss 3 0 48 0
Non-cash operating expense 90 0 166 0
---------- ------- -------- --------
2,211 1,540 4,994 2,821
Changes in non-cash working
capital balances (149) 1,826 4,435 9,022
---------- ------- -------- --------
2,062 3,366 9,429 11,843
---------- ------- -------- --------
Investing activities
Capital asset additions (700) (332) (1,589) (922)
Investment in Idion (292) 0 (8,909) 0
Sale (purchase) of short-term
investments (25,802) 0 1,620 0
Acquisition of technology 0 0 0 (596)
---------- ------- -------- --------
(26,794) (332) (8,878) (1,518)
---------- ------- -------- --------
Financing activities
Repayment of long-term liabilities (1,586) (1,566) (1,586) (1,566)
Capital lease payments (16) (50) (86) (195)
Issuance of share capital 94 22 367 388
Repurchase of share capital (332) (710) (1,435) (1,622)
---------- ------- -------- --------
(1,840) (2,304) (2,740) (2,995)
---------- ------- -------- --------
Increase (decrease) in
cash and cash equivalents (26,572) 730 (2,189) 7,330
Cash and cash equivalents
Beginning of period 33,456 34,805 9,073 28,205
---------- ------- -------- --------
End of period $6,884 $35,535 $6,884 $35,535
---------- ------- -------- --------
---------- ------- -------- --------
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