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Day Reports Fourth Quarter and Fiscal Year 2006 Financial Results


Company Delivers Best Yearly Results Ever

Basel, Switzerland – February 21, 2007

Day Software Holding AG (SWX: DAYN, OTC:DYIHY), a leading provider of global content management software, today announced financial results for the fiscal year ending December 31, 2006.

Financial Summary 2006

* Annual revenue increased 21%
* Net income increased 156%
* Operating income increased 262%
* Non-GAAP income increased 166%
* Increased non-GAAP dilutive earnings per share (EPS) to CHF 1.88

Total revenue for the fiscal year 2006 was CHF 20.6 million, compared with revenues of CHF 17.0 million for the previous year, an increase of 21%. License revenues for the fiscal year 2006 totaled CHF 8.24 million, versus license revenues for the previous year of CHF 7.96 million. Product Support and Services revenue for the fiscal year 2006 was CHF 12.37 million, compared to CHF 9.05 million the prior year. Net income for the fiscal year 2006 was CHF 1.9 million compared to a net income of TCHF 741 for the prior year, an increase of 156%.

”We are very pleased to report our strongest results ever, with record profitability and revenues for 2006,” said Michael Moppert, CEO and Chairman of Day. “Our core business - enterprise content management solutions – provided a healthy revenue basis for the year. In addition, we saw increasing acceptance of our software infrastructure products, diversifying our offerings and opening up new revenue opportunities for the company. Based on our innovative product portfolio we signed OEM contracts with industry leaders such as FAST and Oracle. We have begun the new year with a lot of momentum and believe that the combination of our content management business, our infrastructure products, and the expansion of distribution channels through OEM partnerships will be a very solid basis for continued, profitable growth in 2007.”

On a non-GAAP basis, Day’s net income for the fourth quarter 2006 was CHF 1.21 million, versus a loss of TCHF 62 for the same quarter of last year. Also on a non-GAAP basis, net income for the fiscal year ended December 31, 2006 increased by 166% over last year, totaling CHF 2.71 million, compared to CHF 1.02 million for the fiscal year ended December 31, 2005. The non-GAAP dilutive earnings per share (EPS) was CHF 1.88 for the current fiscal year, compared to CHF 0.74 for the previous year.

Non-GAAP results exclude, acquisition-related charges, share-based compensation expense, amortization expense for certain intangible assets, and one-time charges and gains. One-time charges and gains generally relate to business restructuring, investment and fixed asset impairment. The non-GAAP financial measures included are not meant to be considered in isolation from, superior to, or a substitute for results of operations prepared in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies.

Successful product launches, and technology leadership

In 2006, Day launched Communiqué 4.1, the latest version of the only native JCR (JSR 170) standard compliant enterprise content management solution available on the market. Initiated by Day, JSR 170 is the Java Content Repository (JCR) standard for the enterprise content management industry.

Day also launched Content Repository Extreme (CRX) version 1.2, the latest version of Day’s innovative product that enables the storage, management and exchange of content across large-scale enterprises. New features in Day’s CRX enable the exchange of high-value content between applications and underlying repositories.

Driving Industry Fundamental Standard

In 2006 Day continued to be the leader of a global industry group that has developed the new standard for enterprise content, JSR 170/JSR 283. This initiative has gained the support of all major industry players such as IBM, Oracle, SUN, HP and BEA. With new products in place Day is now one of the first companies to make this technology commercially available to the industry.

2006 Highlights

* Industry Leadership Day leveraged its fourth annual Global Content Management Summit in Lucerne, Switzerland, where executives from leading companies around the world, such as Audi, Credit Suisse, General Motors, Merck, Volkswagen and many others gathered to share best practices about managing enterprise content on a global scale.

* Technological Leadership Day continued to head a global expert group that defines the future standards for the content management industry. In May and September 2006 the company hosted meetings of the expert group of JSR 283, the next version of JSR 170, the groundbreaking Java standard for Content Repositories.

* Product Leadership Day further demonstrated its industry thought leadership by becoming the first company to ship both an ECM solution and a Java Content Repository based on groundbreaking new standard, JSR 170. Day initiated and has led the development of this innovative standard over the past four years.

* Increasing Customer Base New customers added 2006 include leading companies such as: Bank of America, Bodog, DTN, General Motors, Hessischer Rundfunk, Kodak, Merck, Mitsubishi, Nissan, Vodafone, World Savings, Rundfunk Berlin-Brandenburg and Zürcher Kantonalbank. Many existing customers expanded the use of Day Software’s products, such as Audi, DaimlerChrysler, Qinetiq, Voestalpine, Volkswagen and West LB.

* Channel Development New channel opportunities include Oracle and FAST. Day signed an agreement with Oracle to deliver a JSR 170 compliant connectivity to legacy repositories, providing standardized access. Additionally, Day signed an agreement with FAST to provide both connectivity and JSR170 enablement for the FAST enterprise search products.

About Day
Day is a leading provider of integrated content, portal and digital asset management software. Day’s technology Communiqué offers a comprehensive, rapidly deployable framework to unify and manage all digital business data, systems, applications and processes through the web. Communiqué’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:DAYN) since April 2000. Day’s customers are some of the largest global corporations and include Audi, Credit Suisse First Boston (CSFB), DaimlerChrysler, Deutsche Post World Net, Deutsche Bank, Intercontinental Hotels Group, McDonald’s and Volkswagen.

A warning regarding forward-looking statements
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 “expects,” “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. 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. There is currently no public trading market in the United States for the Company’s stock, 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 English text of this press release represents the binding version.


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