DataMirror Announces Third Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing & SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif. -- 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. Corporation (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) ), a leading provider of real-time data Real-time data denotes information that is delivered immediately after collection. There is no delay in the timeliness of the information provided. Some uses of this term confuse it with the term dynamic data. integration, protection and java database solutions, today announced financial results for the third quarter ended October October: see month. 31, 2005 (all figures are in U.S. dollars unless stated otherwise). Revenue for the third quarter was $10.9 million, an increase of 6.7% over $10.2 million for the quarter ended October 31, 2004. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $0.7 million or $0.09 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in Q3 F2006, compared to $0.2 million or $0.02 per diluted share in Q3 last year. 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 the quarter was ($0.1) million, compared to $1.3 million in Q3 F2005. 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 $33.0 million or $3.89 per common share outstanding at the end of the quarter. Revenue for the first nine months of fiscal 2006 was $31.5 million, an increase of 5.5% over $29.9 million for the same period in fiscal 2005. YTD See Year-to-date. YTD See year to date (YTD). GAAP net income was $2.2 million or $0.25 per diluted share in fiscal 2006, compared to $3.5 million or $0.31 per diluted share at the same point last year. Cash flow from operations for the first nine months of fiscal 2006 was $2.9 million, compared to $0.8 million for the same period in fiscal 2005. "Business execution improved during our third quarter," said 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. , DataMirror. "The ongoing transition of our sales team to a solutions-based selling approach resulted in success with several more solution sales to our existing client base." DataMirror's Q3 Fiscal 2006 Highlights: The third quarter of fiscal 2006 was particularly notable for DataMirror due to significant technological advances and the development of new marketing initiatives to further demonstrate DataMirror's commitment to IBM's iSeries technology, specifically: Technology Advances: - Transformation Server/ES (Event Server) - This new product detects events as they occur in mission-critical production applications and creates useful business information to feed into the message queues A storage space in memory or on disk that holds incoming transmissions until the computer can process them. See messaging middleware. of leading enterprise application integration (EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. ), business process management (BPM (Business Process Management) A structured approach that models an enterprise's human and machine tasks and the interactions between them as processes. BPM software provides users with a dashboard interface that offers a high-level view of the operation that typically ), and service-oriented architecture See SOA. (SOA (1) (Start Of Authority) The first record in a DNS zone file. See DNS records. (2) (Service Oriented Architecture) The modularization of business functions for greater flexibility and reusability. ) environments. - DataMirror DB/XML Transform 3.0 (DB/XML 3.0) - Enhancements include support for SOA integration, improved error reporting, enhanced platform support and embedded database (1) Database software that is included with an application rather than offered as a separate database management system (see DBMS). Tending to be compact and efficient, an embedded database generally includes fewer features than a full-blown DBMS. functions that reduce the cost of integrating data between multiple source and target applications. - Transformation Server has completed the BEA BEA - Basic programming Environment for interactive-graphical Applications, from Siemens-Nixdorf. Validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. Program and is now verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. to integrate with BEA WebLogic A software suite from BEA Systems, Inc., San Jose, CA (www.beasys.com) that is used to deploy Web and SOA applications. The core product is BEA WebLogic Server, a J2EE application server. Platform 8.1. New IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) iSeries marketing initiatives: - At COMMON Fall 2005, DataMirror CEO Nigel Stokes hosted a Web seminar entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Maximizing Your iSeries Investment", which reviewed ways in which successful organizations are maximizing their iSeries investments using DataMirror technology. - A special DataMirror promotion was launched to offer a 20 percent discount off regular list price for DataMirror software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. purchased for iSeries platforms before December 31, 2005. In addition, DataMirror also announced the acceptance by the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. of Notice of its Normal Course Issuer Bid, allowing the purchase by the Company from time to time of up to 423,891 of its common shares on the Toronto Stock Exchange over the next 12 months. The Company also announced its decision to voluntarily delist delist To drop a security from trading on an organized exchange. Delisting may occur for a number of reasons including failure to meet an exchange's standards or placement of a new listing on another exchange. Compare list. its common shares from the 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 National Market effective at the close of business on November 4, 2005. Business Outlook: Management offers the following outlook for the fourth quarter of the fiscal year ending January 31, 2006: - In the fourth quarter of fiscal 2006, the Company expects revenue to grow year over year by up to 5% and be in the range of $11.3 million to $11.8 million with GAAP diluted net income in the range of $0.10 to $0.14 per share. These estimates assume a tax rate of 40 percent and include the expensing of stock options. DataMirror management will hold a webcast and conference call to present the results for the third quarter of fiscal 2006 and to outline the prospects for the business going forward 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 22, 2005. The conference call can be accessed via audio webcast at http://www.datamirror.com/investors. Participants should call 1-800-310-6649 using passcode 5532544. An online presentation is available by visiting https://datamirror.webex.com/datamirror and selecting the meeting "DataMirror Announces Third Quarter Results". A replay of the conference call will be available at 8:00 p.m. EST via the DataMirror web site or by dialing 1-888-203-1112 using passcode 5532544. About DataMirror DataMirror (TSX:DMC), a leading provider of real-time data integration, protection and Java database solutions, improves the integrity and reliability of information across all of the systems that create and store data. DataMirror's flexible and affordable integration solutions allow customers to easily and continuously detect, translate, and communicate information changes throughout the enterprise. DataMirror helps clients make better decisions by providing access to the continuous, accurate information they need to take timely action and move forward faster. More than 2,000 companies have gained tangible competitive advantage from DataMirror software. DataMirror is headquartered in Markham, Canada, and has offices around the globe. For more information, visit www.datamirror.com. "Safe Harbour" 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 harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements of plans, objectives, strategies and expectations. The words "anticipate", "believe", "estimate" and "expect" and similar expressions are intended to identify forward-looking statements. Numerous important 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: the difficulty of developing, marketing and selling new products successfully; variability of quarterly operating results; dependence upon the continued growth and success of DataMirror's software products; competition; rapid technological change and new product introductions; 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. , including 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 DataMirror'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 . Should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those indicated in any forward-looking statements. DataMirror disclaims and does not assume any obligation to update these forward-looking statements. Copyright 2005 DataMirror Corporation. DataMirror, Transformation Server, Transformation Server/Event Server, DB/XML Transform and the DataMirror family of related marks are registered trademarks of DataMirror Corporation. DataMirror and the DataMirror logo are registered in the U.S. Patent and Trademark office, the Canadian Intellectual Property Office The Canadian Intellectual Property Office (CIPO) is the patent, trademark, and copyright administration body of Canada. See also
DataMirror Corporation
Interim Consolidated Statements of Income
(Thousands of U.S.$, except per share data - unaudited)
Three Months Nine Months
Ended Ended
October 31, October 31,
----------------- -----------------
2005 2004 2005 2004
----------------- -----------------
Revenue
Licence $4,896 $4,271 $13,479 $12,031
Maintenance 5,158 5,042 15,736 15,080
Services 831 885 2,307 2,764
----------------- -----------------
10,885 10,198 31,522 29,875
----------------- -----------------
Cost of revenue
Licence 37 46 126 141
Maintenance and services 2,108 2,232 6,225 6,987
----------------- -----------------
2,145 2,278 6,351 7,128
----------------- -----------------
Gross margin 8,740 7,920 25,171 22,747
----------------- -----------------
Operating expenses
Selling and marketing 3,393 3,425 9,309 11,354
Research and development 2,116 2,000 5,974 5,946
General and administration 1,877 1,629 5,450 4,750
Stock-based compensation 54 76 215 236
Amortization of intangibles 419 554 1,224 1,695
----------------- -----------------
7,859 7,684 22,172 23,981
----------------- -----------------
Operating income (loss) 881 236 2,999 (1,234)
Investment income, net 178 223 571 565
Gain on sale of investment 0 0 0 5,466
----------------- -----------------
Income before income taxes 1,059 459 3,570 4,797
Income tax expense 319 218 1,339 1,305
----------------- -----------------
Net income $740 $241 $2,231 $3,492
----------------- -----------------
----------------- -----------------
Earnings per share
Basic $0.09 $0.02 $0.25 $0.31
Fully diluted $0.09 $0.02 $0.25 $0.31
Weighted average number of
shares outstanding (000's)
Basic 8,478 10,917 8,883 11,159
Fully diluted 8,509 10,980 8,949 11,349
DataMirror Corporation
Interim Consolidated Balance Sheets
(Thousands of U.S.$, except for number of shares - unaudited)
October 31, January 31,
2005 2005
-------------------------
Assets
Current assets
Cash and cash equivalents $7,606 $7,687
Short-term investments 25,380 38,707
Accounts receivable 5,988 8,055
Prepaid expenses 1,163 1,328
Future income taxes 1,770 2,426
-------------------------
41,907 58,203
Capital assets 2,638 2,754
Future income taxes 598 0
Intangibles 1,195 2,344
Goodwill 4,385 4,180
-------------------------
$50,723 $67,481
-------------------------
-------------------------
Liabilities
Current liabilities
Accounts payable and accrued
liabilities $2,711 $2,989
Deferred revenue 15,583 17,838
Income taxes payable 24 750
-------------------------
18,318 21,577
Future income taxes 0 83
-------------------------
18,318 21,660
-------------------------
Shareholders' Equity
Share capital
Common shares
(October 31, 2005 - 8,478,110
January 31, 2005 - 10,555,966) 32,510 42,250
Deficit (8,622) (2,953)
Contributed surplus 1,091 876
Cumulative translation adjustment 7,426 5,648
-------------------------
32,405 45,821
-------------------------
$50,723 $67,481
-------------------------
-------------------------
DataMirror Corporation
Interim Consolidated Statements of Cash Flows
(Thousands of U.S.$ - unaudited)
Three Months Nine Months
Ended Ended
October 31, October 31,
------------------------------------
2005 2004 2005 2004
------------------------------------
Cash provided by (used in)
Operating activities
Net income $740 $241 $2,231 $3,492
Add (deduct) items not
affecting cash:
Amortization of capital
assets 274 231 728 676
Amortization of intangibles 419 554 1,224 1,695
Stock-based compensation 54 76 215 236
Future income taxes 97 (470) 89 (818)
Gain on sale of investment 0 0 0 (5,466)
Investment tax credits 0 147 0 760
------------------------------------
1,584 779 4,487 575
------------------------------------
Changes in non-cash working
capital balances (1,635) 537 (1,595) 271
------------------------------------
(51) 1,316 2,892 846
------------------------------------
Investing activities
Capital asset additions (55) (200) (480) (490)
Purchase of short-term
investments (25,689) (39,391) (25,689) (39,391)
Sale of short-term
investments 0 0 38,749 24,447
Sale of investment in Idion 0 0 0 14,287
Investment in Idion 0 0 0 (73)
------------------------------------
(25,744) (39,591) 12,580 (1,220)
------------------------------------
Financing activities
Capital lease payments 0 0 0 (24)
Issuance of share capital 2 85 171 594
Repurchase of share capital 0 (1,771) (17,811) (5,603)
------------------------------------
2 (1,686) (17,640) (5,033)
------------------------------------
Effect of exchange rate changes
on cash and cash equivalents 1,544 2,139 2,087 3,330
------------------------------------
Increase (decrease)
in cash and cash equivalents (24,249) (37,822) (81) (2,077)
Cash and cash equivalents
Beginning of period 31,855 42,754 7,687 7,009
------------------------------------
End of period $7,606 $4,932 $7,606 $4,932
------------------------------------
------------------------------------
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