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 fng us a soling 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.
Separately, Day Software Holding AG (SWX:DAYN, OTCQX:DYIHY), a leading provider of global content management software, today announced the appointment of Erik Hansen as new CEO of the company. Michael Moppert, founder and CEO of Day Software for over 15 years, will continue to serve the company as Chairman of the Board of Directors. Mr. Hansen will take on his new responsibility by June 2, 2008.
Mr. Hansen is a recognized software industry veteran with over 30 years of experience as a senior executive at leading software companies, including Interwoven, Tibco, Siemens and Apple, both in Europe and in the United States.
Most recently Mr. Hansen was leading the European operations of U.S. ECM vendor Interwoven as Senior Vice President and General Manager EMEA. Prior to Interwoven, Mr. Hansen was heading the European operations of Netegrity, a leading provider of identity and access management solutions. Before his engagement at Netegrity, Mr. Hansen served as President EMEA at Tibco, where he very successfully built the European operations of this global infrastructure software vendor. Before Tibco Mr. Hansen was Executive Vice President and General Manager Operations of Siemens Pyramid Inc , a 100% owned subsidiary of Siemens, during which time he was based in San Jose, California.
"Erik brings a unique combination of skills and professional experience to Day," said Michael Moppert, founder and chairman of Day Software. "He knows our two core markets extremely well: With Interwoven he has been very successful in the area of Content Management. At Tibco Erik built up their European operations in record time. He was aggressively growing the company's market share, revenues and profitability and made Tibco one of the undisputed leaders in the area of infrastructure software. His experience in these two key markets will enable Erik to unlock the full potential of the technology we have built at Day and further accelerate our growth," Moppert continued. "Erik is a very seasoned software executive who has successfully run businesses of significant size both in Europe and the United States. He is extraordinarily qualified to continue the positive development of Day and further strengthen our position as a globally recognized industry leader in the content management and content infrastructure space."
"We have a tremendous opportunity at Day to take the company to the next level. All the necessary ingredients for accelerated growth are there: Day offers the industry's most innovative content management product portfolio with a unique mix of applications and infrastructure solutions. We are the internationally recognized leader of the industry's new standard for content management. We have an excellent customer base and OEM relationships with some of the most recognized technology vendors such as IBM and Oracle. The company is financially healthy and has delivered continued profitable growth," said Erik Hansen. "My mandate is to continue and accelerate these positive trends. The significant majority of the company's revenues so far resulted from its content management applications. We will continue to grow that business and serve our customers. In parallel we will accelerate the growth of the content infrastructure business. Day Software is the undisputed technology leader in the new, emerging market of content infrastructure software. We will leverage this unique position aggressively and open up new revenue opportunities - which we believe to be very significant. I am excited to have the opportunity to execute this strategy as it gives me the unique opportunity to leverage the experience I have in both the content management space as well as in the infrastructure industry," Hansen concluded.