Day Reports Financial Results for Third Quarter for Fiscal Year 2005; Company Increases Profitability on Record Third Quarter Revenues.BASEL Basel (bä`zəl) or Basle (bäl), Fr. Bâle, canton, N Switzerland, bordering on France and Germany. , Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. -- Day Software (SWX SWX Swiss Exchange (trademark of SWX Swiss Exchange) SWX SolidWorks (3D solid modeling CAD software) SWX Splitter / Wave Division Multiplexer :DAYN)(OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the third quarter of 2005. Highlights --26% total revenue increase compared to the third quarter of 2004 --88% license revenue increase compared to the third quarter of 2004 --81% gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for third quarter 2005, up from 66% for the same period in 2004 --Net income of TCHF 770 as compared to a net loss of CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.1 million for the third quarter of 2004 --New major customers added in the third quarter of 2005 include Penn State University, Department of Interior, H&R Block Mortgage, Media General, eMusic eMusic is an online music store that operates by subscription. It is headquartered in New York, New York, and owned by Dimensional Associates, LLC. As of March 2007, eMusic is the second largest online music store and has over 250,000 subscribers. , Scripps SCRIPPS Cardiology A clinical trial–Scripps Coronary Radiation to Inhibit Proliferation Post Stenting , and Fiducia --Successful launch of Company's new Java Content Repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. - CRX CRX Civic Renaissance Model X (Honda automobile model) CRX Cone-Rod Homeobox-Containing Gene CRX Civic Renaissance Experimental (Honda) , and Repository Connector product line, shipping JSR JSR Java Specification Request JSR J Sargeant Reynolds Community College (Virginia) JSR Journal of Sedimentary Research JSR Jump to Subroutine (6502 processor instruction) 170 Connector for EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Documentum Documentum is an enterprise content management platform, now delivered by EMC Corporation, as well as the name of the software company that originally developed the technology. EMC acquired Documentum for $1.7 billion in December, 2003. --New partnership with BEA BEA - Basic programming Environment for interactive-graphical Applications, from Siemens-Nixdorf. to provide JSR 170 infrastructure The Company experienced a record third quarter, reporting a 26% growth in total revenue over the same period in 2004. Revenues for the third quarter totaled CHF 4.25 million, compared with revenues of CHF 3.37 million for the third quarter of 2004. License revenues increased by 88% over last year, totaling CHF 2.07 million, compared with license revenues of CHF 1.1 million for the same period last year. The Company increased its gross profit to CHF 3.45 million compared to CHF 2.22 million for the same period in the previous year. Net income for Q3 of 2005 was TCHF 770 compared to a loss of CHF 1.06 million in Q3 2004. For the nine-month period ended September September: see month. 30, 2005, total revenue was CHF 12.02 million, compared to CHF 10.72 million for the nine months ended September 30, 2004. License revenues for the nine months ended September 30, 2005 increased 32% to CHF 5.41 million, as compared to CHF 4.11 million for the nine months ended September 30, 2004. The gross profit margin for the nine months ended September 30, 2005 was 77%, compared to 70% for the same period in 2004. The net income for the nine months ended September 30, 2005 increased to TCHF 928, compared to a loss of CHF 2.5 million for the nine months ended September 30, 2004. "We are excited about the excellent results for the third quarter," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Moppert, 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. and Chairman of Day. "The Company has delivered the highest third quarter year license revenue in its operating history. We have added new major blue chip customers, such as Penn State University, Department of Interior, Option One Mortgage, Media General, eMusic, Scripps, and Fiducia. Costs are under control and profitability continues to increase. With these trends we are on track to deliver a healthy 2005." "In addition to our solid financial results for the quarter we successfully launched a range of new products based on the new standard for Java Content Repositories While acknowledging services such as [ROAR: [1]] and [OpenDOAR: [2]] it is perhaps necessary to provide a list of individual repositories described in more detail within wikipedia here. , which we introduced to the industry this summer," Moppert continued. "The successful diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our products combined with our technology leadership in the emerging market of standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. content repositories proves to be a solid basis for further growth. We are excited to see the positive impact of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy on the development of our operating results." Successful Launch of JSR 170-Compliant Content Repository and Connector Product Line Day Software successfully launched two new product lines, which are both fully compliant with the Content Repository for Java Technology API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. standard (JSR 170). The first product line is Day's new Java Content Repository - CRX. Day's CRX enables customers to manage large volumes of complex content in a standardized environment, thus gaining significant efficiency and reducing cost. The second new product line is a series of repository connectors, which enable leading legacy repositories to interact with a standardized Java Content Repository. The first of these innovative interfaces to be delivered is for EMC Documentum. The Day connector will make enterprise content stored in Documentum's legacy repository accessible through the new industry standard, creating greater interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. and openness. Other connectors that are in development include interfaces for FileNet A document imaging system from IBM (www.filenet.com). Introduced in 1985 by FileNet Corporation, the company was acquired by IBM in 2006. FileNet is the most widely used high-end workflow system and runs on PCs and a variety of Unix workstations. , OpenText LiveLink, Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. SharePoint A Microsoft brand for software that enables a Web site to provide document and information sharing. SharePoint Team Services provides templates for setting up a Web site so that workgroups can share documents, calendars, announcements and postings. , 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) Domino.doc, Software AG Tamino (Transaction Architecture for the Management of INternet Objects) A native XML database from Software AG, Reston, VA (www.softwareagusa.com) for Windows NT/2000, Solaris and Linux. , and Interwoven in·ter·weave v. in·ter·wove , in·ter·wo·ven , inter·weav·ing, inter·weaves v.tr. 1. To weave together. 2. To blend together; intermix. v.intr. , among others. "We are very excited about the initial success of these products. We have made substantial investments to initiate and lead the JSR 170 specification, the global standard for enterprise content access, and we have developed our own products in parallel with the standard. We are now on track to position Day Software as the leader in the emerging market for Java Content Repositories. We believe that this expansion of our product portfolio will be an excellent basis for further growth," explained David Nuescheler, Chief Technology Officer of Day and Specification Lead for JSR 170 initiative. JSR 170 is the new standard that defines the interaction between a business application and the repository where the application stores content. Day Software initiated this standard three years ago, and is leading an international industry expert group that develops the JSR 170 specification. The JSR 170 initiative has gained the support of all major industry players such as IBM, Oracle, Sun and SAP. BEA Partnership to Deliver JSR 170 Connectivity for 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. Portal In the third quarter of 2005, Day entered into a technology partnership with BEA, a recognized leader of infrastructure software, to deliver a JSR 170-compliant connector for BEA WebLogic Portal(TM). The Day repository connector is designed to enable BEA WebLogic Portal to interact with enterprise content repositories -- such as Day's Content Repository Extreme (CRX) -- that are compliant with the new JSR 170 industry standard. "Supporting JSR 170 gives our customers a standard, open interface to a wide variety of content repositories, helping them to develop fuller, richer portals," said Bill Roth, vice president, solutions and product marketing, BEA Systems BEA Systems, Inc. (NASDAQ: BEAS) is one of the major companies developing enterprise infrastructure software. BEA makes middleware, products that help software run on top of databases. , Inc. "JSR 170 is emerging as one of the most important standards governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. how content management and portal applications should work together. By leveraging Day's engineering expertise around JSR 170, BEA is able to provide its customers with best of breed capabilities around this exciting new standard." BEA's decision to integrate Day Software's JSR 170 technology into their products serves as further support of Day's position as a leader in the emerging market of Java Content Repositories. About Day (www.day.com) Day is a leading provider of integrated content, portal and digital asset management software. Day's technology Communique offers a comprehensive, rapidly deployable framework to unify 1. (database, product) Unify - A relational database produced by Unify Corporation. 2. (algorithm) unify - To perform unification. and manage all digital business data, systems, applications and processes through the web. Communique's content-centric architecture, and its innovative ContentBus, turns the entire business into a virtual repository bringing together content from any system, regardless of location, language or platform. Day is an international company, founded in 1993, and listed on the SWX Swiss Exchange SWX Swiss Exchange An all-electronic securities exchange formed from the 1995 merger of exchanges in Geneva, Basel, and Zurich. The exchange offers trading in equity securities, investment funds, exchange-traded funds, bonds, Eurobonds, and options. (SWX:DAYN) since April 2000. Day's customers are some of the largest global corporations and include Audi, DaimlerChrysler, Deutsche Post Deutsche Post AG (ISIN: DE0005552004, LSE: DPO) is a German post, logistics and courier headquartered in Bonn, previously the German state-owned mail monopoly. It has 520,000 employees in more than 220 countries and territories worldwide and generated revenue of € 60. World Net, General Electric, Intercontinental Hotels Group InterContinental Hotels Group (IHG) (LSE: IHG NYSE: IHG) is a multinational company which operates several hotel brands. The largest hotel company by number of rooms (556,000 as of March 2007 [1]), its headquarters are in Windsor just outside Greater London and , McDonald's McDonald’s fast-food restaurant chain throughout the world; recognized by golden arches. [Am. Culture: Misc.] See : Ubiquity , UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System and Volkswagen. A Warning Regarding 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. 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 "anticipates," "expects," "intends," "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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . 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. We refer you to the "Risk Factors" section of the Company's Offering Circular Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. , which can be downloaded from the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section of the Company's website at www.day.com. The Company's Offering Circular contains and identifies important factors that could cause actual results to differ materially from those contained in any forward-looking statements. Among the important factors which could cause the Company's actual results to differ materially and adversely from such forward-looking statements are the intense competition in its industry, its need to stay on the forefront of technological development within its industry, and uncertainty regarding its future capital needs. The Company's stock is not listed on any 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. stock exchange or market, and 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. The complete Financial Results for Third Quarter for Fiscal Year 2005 is on file with the SWX and is available from the Investor Relations section of our website at www.day.com. The English text of this press release represents the binding version.
CONSOLIDATED BALANCE SHEETS
(in thousands CHF)
(unaudited)
September 30, December 31,
ASSETS 2005 2004
Current assets
Cash and cash equivalents 4,087 4,500
Accounts receivable, net 4,802 2,638
Unbilled receivables 1,469 155
Other receivables 44 424
Prepaid expenses 444 228
Total current assets 10,846 7,945
Non-current assets
Property and equipment, net 125 603
Capitalized software development
costs, net 1,216 -
Investments 268 91
Goodwill and intangible assets, net 3,371 3,511
Other assets 613 333
Total non-current assets 5,593 4,538
TOTAL ASSETS 16,439 12,483
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 263 400
Deferred revenues 3,240 2,224
Other current liabilities 332 181
Accrued liabilities 1,398 1,597
Total current liabilities 5,233 4,402
Commitments and contingencies
Shareholders' equity
Share capital 13,449 12,097
Treasury shares (14,341 shares at
September 30, 2005, and 9,762
shares at December 31, 2004, at cost) (1,178) (1,074)
Capital reserves 139,181 138,299
Accumulated deficit (139,724) (140,652)
Accumulated other comprehensive loss (522) (589)
Total shareholders' equity 11,206 8,081
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 16,439 12,483
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands CHF, except share information)
(unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenues
Software licenses 5,406 4,107 2,068 1,100
Services 6,617 6,610 2,181 2,265
Total revenues 12,023 10,717 4,249 3,365
Cost of revenues
Software licenses 39 16 38 1
Services 2,747 3,158 759 1,144
Total cost of revenues 2,786 3,174 797 1,145
Gross profit 9,237 7,543 3,452 2,220
Operating expenses
Research and development 1,443 2,266 591 753
Sales and marketing 4,756 5,402 1,526 1,867
General and administrative 2,153 2,424 589 673
Amortization of intangible
assets 140 140 47 47
Stock-based compensation - 28 - 10
Income (Loss) from operations 745 (2,717) 699 (1,130)
Interest income 14 19 5 8
Interest expense (1) (4) (1) (1)
Foreign exchange gain (loss) 33 (19) (12) 6
Other income 140 205 79 52
Income (Loss) before
income taxes 931 (2,516) 770 (1,065)
Provision for income taxes (3) (2) - 2
Net income (loss) 928 (2,518) 770 (1,063)
Other comprehensive income 67 14 27 10
Comprehensive income
(loss) 995 (2,504) 797 (1,053)
Basic earnings (loss) per
share 0.73 (2.12) 0.58 (0.88)
Dilutive earnings (loss)
per share 0.68 (2.12) 0.55 (0.88)
Shares used in computing
basic earnings (loss)
per share 1,267,335 1,189,385 1,332,136 1,206,985
Shares used in computing
dilutive earnings (loss)
per share 1,359,958 1,189,385 1,412,782 1,206,985
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands CHF)
(unaudited) Nine Months Ended
September 30,
2005 2004
Net income (loss) 928 (2,518)
Adjustments to reconcile net income (loss) to
net cash used in operating activities
Depreciation of fixed assets 503 822
Loss on fixed asset dispositions 1 10
Amortization of intangible assets 140 140
Amortization of capitalized software costs 37 -
Net foreign currency exchange gain (48) (10)
Stock-based compensation 17 26
Stock received in exchange for software (129) (100)
Capitalized software development cost (1,253) -
Changes in operating assets and liabilities
Accounts receivable (2,016) 3,435
Unbilled receivables (1,252) (272)
Prepaid expenses and other current assets 178 (117)
Other assets (222) -
Accounts payable (167) 237
Deferred revenues 830 (992)
Accrued liabilities (238) (538)
Other current liabilities 136 (457)
Net cash used in operating activities (2,555) (334)
Cash flows from investing activities
Purchases of equipment (16) (32)
Proceeds from sale of equipment - 1
Net cash used in investing activities (16) (31)
Cash flows from financing activities
Proceeds from stock option exercises 295 915
Net proceeds from issuance of share capital 1,997 -
Stamp duty on issuance of shares (23) -
Purchase of treasury shares (988) -
Proceeds from sale of treasury shares 832 -
Net cash provided by financing activities 2,113 915
Net increase (decrease) in cash and cash
equivalents (458) 550
Foreign currency adjustment on cash 45 (21)
Cash and cash equivalents at beginning of
period 4,500 5,344
Cash and cash equivalents at end of period 4,087 5,873
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in thousands CHF, except share information)
(unaudited)
Share Capital Treasury Capital
-------------------- Shares Reserves
Shares Amount
----------------------------------------
Balances
January 1, 2004 1,125,310 11,253 (1,074) 138,170
Proceeds from exercise of
stock options 84,344 844 - 90
Stock-based compensation - - - 39
Net loss - - - -
Foreign currency translation - - - -
----------------------------------------
Balances
December 31, 2004 1,209,654 12,097 (1,074) 138,299
Proceeds from exercise
of stock options 27,200 272 - 23
Net proceeds from issuance
of share capital 108,000 1,080 60 834
Purchase of treasury shares - - (988) -
Proceeds from sale of
treasury shares - - 824 8
Stock-based compensation - - - 17
Net income - - - -
Foreign currency translation - - - -
----------------------------------------
Balances
September 30, 2005 1,344,854 13,449 (1,178) 139,181
========================================
Accumulated
Other Total
Accumulated Comprehensive Shareholders'
Deficit Income (Loss) Equity
----------------------------------------
Balances
January 1, 2004 (135,139) (599) 12,611
Proceeds from exercise
of stock options - - 934
Stock-based compensation - - 39
Net loss (5,513) - (5,513)
Foreign currency translation - 10 10
----------------------------------------
Balances
December 31, 2004 (140,652) (589) 8,081
Proceeds from exercise
of stock options - - 295
Net proceeds from issuance
of share capital 1,974
Purchase of treasury shares - - (988)
Proceeds from sale of
treasury shares - - 832
Stock-based compensation - - 17
Net income 928 - 928
Foreign currency translation - 67 67
----------------------------------------
Balances
September 30, 2005 (139,724) (522) 11,206
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