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Day Software Increases Half Year Profitability on Growing Revenues


Basel, Switzerland - August 23, 2006 - Day Software (SWX: DAYN, OTC:DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the first half of 2006.


* 23% increase in total revenue as compared to the first half of 2005
* 15% increase in license and maintenance revenue compared to the first half of 2005
* Gross profit increased 24% to CHF 7.15 million compared to CHF 5.79 million in the first half of 2005
* Net income increased 365% to TCHF 735 compared to TCHF 158 in the first half of 2005
* Improved cash balance up to CHF 7.1M compared to CHF 4.3M at beginning of the year
* New major customers added in the first half of 2006 include Mitsubishi, Nissan, World Savings, RBB Online, Hessischer Rundfunk, DSTA, MinDef and Data Transmission Network (DTN)
* New OEM agreements in the first half of 2006 with FileNet and FAST Search
* Successful initialization of version 2.0 of the Content Repository for Java Technology API under the leadership of Day Software

For the First Half of 2006, Day reported a 23% growth in total revenue over the same period in 2005. Revenues for the First Half totaled CHF 9.55 million, compared with revenues of CHF 7.77 million for the First Half of 2005. License and maintenance revenues increased by 15% over last year, totaling CHF 6.33 million, compared with license and maintenance revenues of CHF 5.48 million for the same period last year. The company increased its gross profit to CHF 7.15 million compared to CHF 5.79 million for the same period in the previous year. Day reported net income of TCHF 735 for the first half 2006 compared to a net income of TCHF 158 for the same period in 2005, an increase of 365%. In addition, the company generated CHF 2.9M of positive cash flow during the first half of 2006.

The year over year quarterly revenues were up 20% totaling CHF 4.36 million, compared to CHF 3.65 million for the same period last year. On a quarter over quarter comparison the company did experience slightly lower total revenue due to normal quarterly revenue volatility. Total revenue for the second quarter of 2006 was CHF 4.36 million compared to CHF 5.2 million for the first quarter of 2006.

“We are pleased with the results for the first half of 2006. All major indicators are on track: The company delivered growing revenues and increased profitability. We have secured new major customers in all regions, and have added indirect sales channels with leading companies such as FileNet and Fast,” said Michael Moppert, CEO and Chairman of Day. “The healthy results of the first half year give us a stable basis for continued growth in the second half of 2006. The outlook is positive for all our regions: We see solid momentum with each of our product lines. Demand for our new connector technology is increasing. Both our direct distribution and our emerging indirect channel business are very active and will contribute to the growth in the second half of the year.”

Enterprise Customers. In the first half, the company added several new customers in all regions, representing key verticals. The automotive sector continued to be an important sector for Day with Mitsubishi and Nissan added as new customers. In Media and Entertainment, the company added Rundfunk Brandenburg Berlin, Hessischer Rundfunk and Data Transmission Network (DTN). In Singapore, Day expanded its presence in the public sector with DSTA and MinDef. In financial services the company added World Savings, a premier consumer financial services company, with over $125 billion in assets.

Channel Customers. Based on the innovative product portfolio Day was able to diversify its delivery channels by adding new revenue streams from OEM contracts. Day signed an agreement with FileNet to provide Web Content Management capabilities for the FileNet P8 platform. FAST, the global leader in enterprise search, has licensed Day’s standardized content connectors for various legacy repositories. Chicago-based Acquity Group has developed a “Content Management on Demand” solution. The platform is powered by Day technology and marketed to companies that are looking for a cost efficient, hosted CMS solution. “We are very excited about these new distribution channels. They are an excellent validation of the strength of our technology and open up valuable new customer segments and revenue streams,” said Chris Stark, SVP of Sales at Day.

Product Leadership. Day launched Content Repository Extreme (CRX) version 1.1, the latest version of Day’s innovative product that enables the storage, management and exchange of content across large-scale enterprises. Day CRX provides an open, standards-based infrastructure for integrating business applications with any structured or unstructured content in an enterprise. New features in Day CRX enable the exchange of high-value content between applications and repositories, including relational databases.

Technology Leadership. Under the leadership of Day’s CTO, David Nuescheler, the version 2.0 of the Content Repository for Java Technology API has been successfully initiated. As the head of this global initiative, Day Software hosted a face-to-face meeting in Basel, Switzerland, for the expert group that jointly develops JSR 283 (successor to JSR 170). Participating companies included BEA, EMC, FileNet, IBM, SUN, Oracle and many others. The next version of the standard will help to further improve the interoperability of content applications and content repositories.

The expert group discussed key elements for version 2.0 of the Content Repository for Java Technology API such as access control management, workspace and node-type management in addition to retention aspects of content or cross repository aspects. The latest version provides improved interoperability within the content repository through the addition of new standardized node types like meta information and internationalization.

Capital market activities. In the first half of 2006, Day engaged Merriman Curhan Ford Corporation to provide capital market services for Day. MCF Corporation is a financial services holding company that provides investment research, capital markets services, corporate and venture services, investment banking, asset management and wealth.

MFC is currently working on Day’s inclusion on the premium quotation, trading, and disclosure service for OTC securities, the OTCQXSM. Designed to clearly differentiate operating companies with audited financials that can meet certain requirements, OTCQX provides issuers with a mechanism to publish quarterly and annual audited financial reports, management certifications, and interim event disclosure.

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 with operations in Europe, North American and Asia. 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 complete Financial Results for First Half Year for Fiscal Year 2006 is on file with the SWX and is available from the Investor Relations section of our web site at

The English text of this press release represents the binding version.


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