DataMirror six-month results
DataMirror Corp DMC
Shares issued 10,360,060 Aug 23 close $4.95
Tue 24 Aug 99 News Release
Mr. Nigel Stokes reports
Revenue for the second quarter ended July 31, 1999, was $10,144,000, the
highest quarterly revenue in the company's history with licence revenue 42
per cent higher than for the quarter ended April 30, 1999. The net loss for
the quarter (including DataMirror's pro rata share of losses incurred by
PointBase, Inc.) was $898,000 or nine cents per share as compared with a
loss of $2,849,000 or 28 cents per share for the quarter ended April 30,
1999. Operating expenses have decreased for the second consecutive quarter.
Cash from operating activities of $1,023,000 was an improvement of
$1,921,000 from the previous quarter. The weighted average number of common
shares outstanding for the quarter was 10,188,000 as compared with
10,352,000 for the same period last year.
Without the equity loss of PointBase, the company would have reported net
income for the quarter of $101,000 or one cent per share as compared with a
net loss of $2,174,000 or 21 cents per share for the quarter ended April
30, 1999. The equity loss of PointBase is not deductible for income tax
purposes nor does it involve an outlay of cash resources. Even though the
accounting treatment followed for the company's investment in PointBase
effectively writes down the carrying value as a charge to earnings,
management believes the value of this investment is increasing. PointBase
has now started to generate revenue.
Revenue for the six months ended July 31, 1999, was $18,230,000, compared
with $14,032,000 for the same period last year, an increase of 30 per cent,
and $8,382,000 for the same period in the 1998 fiscal year, an increase of
118 per cent. The first six months of the fiscal year contributed 42 per
cent and 38 per cent to the company's annual revenue totals in fiscal 1999
and 1998.
"The business outlook improved during the quarter," said Nigel Stokes,
chairman, president and chief executive officer of DataMirror. "With our
sales growth and flattening out of expenses, we improved our operating
income by $2.7-million from the previous quarter. Business from new
customers increased during the quarter. New accounts contributed 75 per
cent of our licence revenue, up from 59 per cent in the previous quarter.
Channel contribution was particularly strong accounting for 34 per cent of
licence revenue and half of our over 80 new customers.
"Our customers continue to recognize the value proposition of enterprise
data integration -- the ability to transform, move and synchronize data to
link multiplatform production data stores or integrate new technologies. In
particular, significant business drivers are software infrastructure for
e-business sites and the increasing demand for resiliency or back-up and
recovery solutions."
"More and more customers are using our products as the replication
infrastructure for .com applications. Approximately 24 per cent of our
Transformation Server sales were for e-business applications. DataMirror
Transformation Server can provide full data integration of operational
systems with e-business applications. Our open system approach provides
real time movement and synchronization of data stores affected by
e-business transactions, on a wide variety of platform or database
environments. Customers who have purchased the company's products for
e-business infrastructure include A. Daigger Corporation, ADT Automotive,
Barnes & Noble, CHS Electronics, Debenhams Retail, GE Capital Railcar
Services, Harley-Davidson, Manheim Auctions, Maytag Appliances, MCL Group
(Mazda U.K.), Playboy Enterprises, RayBan, Southern Clay Products, Thomas
Miller & Co. and Wallenius Lines.
"Resiliency and recovery software continues to be in high demand for a
variety of mission-critical applications including e-business. Industry
awareness of the need for resilient e-business sites has been highlighted
in recent months. Together with DataMirror's High Availability Suite, the
new IBM AS/400 e-series is extremely well positioned for hosting
continuously available e-business Web sites. We have also had strong
interest in our competitive upgrade program for high-availability software.
Since its release late last year, more than 275 licences of
high-availability suite have been sold to over 100 customers, most of whom
were new customers.
"Our own e-business initiative has been a considerable success. Since
March, over 400 product downloads www.datamirror.com were generated from
our Web site. Both existing and prospective customers have commented on the
advantages of being able to download software from the site and to obtain,
on a self-service basis, their own authorization codes and product
information. For middleware software, we believe we are the leaders in
providing this level of fulfilment directly over the Internet," added Mr.
Stokes.
New customers during the quarter included Big 5 Sporting Goods, Capital
Radio, Castrol North America, Charles Schwab Europe, CHS Electronics,
Danfoss Interservices, Debenhams Retail, DG Diskontbank, Frontier
Information Technology, GE Capital Railcar Services, Gustaf Kahr, Haggar
Apparel, HVB America, Invesco Bank Deutschland, Lohmann & Rauscher, Maytag
Appliances, MediaOne, Missouri Department of Corrections, Reckitt & Colman
and R.R. Donnely.
Of a total staff complement of 218 at July 31, 1999, 119 were in sales,
marketing and support; 68 in research and development; and 31 in general
and administration roles. At quarter-end, the company's staff count was 21
per cent higher than staff levels at July 31, 1998.
New technology
During the quarter, the company announced the following new software
releases:
Enterprise Administrator for Transformation Server was released for Oracle,
Sybase and DB2 on S/390. Featuring a common graphical interface written
completely in Java, Enterprise Administrator permits users to manage
Transformation Server across all major database systems from a single
location. Users can set up tables, specify movement parameters and start
full refresh, periodic net-change replication or real-time data mirroring.
Overall system performance has been improved by off-loading administrative
functions from production systems to the portable and platform independent
Enterprise Administrator. Further releases of this product are planned to
enable browser-based, install-free configuration of Transformation Server
via an intranet, extranet or over the Internet.
Transformation Server for Oracle on Linux was released to integrate Oracle
databases on Linux with data residing on Microsoft NT, UNIX, IBM AS/400 and
S/390. Linux, with over 700,000 server licences installed in 1998 alone, is
the fastest growing server operating environment.
iCluster for IBM AS/400 Cluster Management was launched to provide
high-availability applications for e-business and other business-critical
applications complementing IBM's AS/400 clustering solution. Customers can
use iCluster to manage all systems in an AS/400 cluster and monitor all
critical data and applications from a single workstation. High Availability
Suite is being engineered to provide an intuitive graphical interface to
manage IBM AS/400 clusters as well as to provide increased levels of data
and application resiliency.
iDeliver, a new replication and transformation technology for delivering
real-time data to the desktop, was commercially launched at the Microsoft
TECH-ED conference in Dallas, Tex. Working with Transformation Server,
iDeliver can receive and distribute information from Microsoft SQL Server,
Oracle, Sybase and IBM DB2 database systems directly into desktop
spreadsheets, such as Microsoft Excel, or other data stores such as
Microsoft Access, and automatically update only the records that have
changed on the remote systems. Finding, using and keeping valuable
production data up-to-date is maintained from a secure Web-based
publication directory that serves as a business portal to information
dispersed across a corporate network.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
Three months ended July 31
(thousands of dollars)
1999 1998
Revenue
Licence $ 7,115 $ 6,583
Maintenance 1,950 853
Other 1,079 1,040
--------- ---------
10,144 8,476
Direct costs 155 117
--------- ---------
Gross margin 9,989 8,359
--------- ---------
Operating expenses
Selling and
marketing 5,919 4,566
Research and
development 1,384 970
General and
administration 2,235 1,835
Amortization of
intangibles 296 219
--------- ---------
9,834 7,590
--------- ---------
Operating income
(loss) 155 769
Interest income 56 185
--------- ---------
Income (loss)
before income
taxes 211 954
Income tax
expense (recovery) 110 231
--------- ---------
Income (loss)
before the
undernoted 101 723
Equity loss in
PointBase Inc. (999) -
--------- ---------
Net income (loss) $ (898) $ 723
========= =========
Basic earnings
(loss) per share (9 cents) 7 cents
CONSOLIDATED STATEMENT OF INCOME (LOSS)
Six months ended July 31
(thousands of dollars)
1999 1998
Revenue
Licence $ 12,119 $ 10,765
Maintenance 3,639 1,624
Other 2,472 1,643
--------- ---------
18,230 14,032
Direct costs 516 230
--------- ---------
Gross margin 17,714 13,802
--------- ---------
Operating expenses
Selling and
marketing 12,196 7,934
Research and
development 2,776 1,727
General and
administration 4,578 3,225
Amortization of
intangibles 572 413
--------- ---------
20,122 13,299
--------- ---------
Operating income
(loss) (2,408) 503
Interest income 163 362
--------- ---------
Income (loss)
before income
taxes (2,245) 865
Income tax
expense (recovery) (172) 349
--------- ---------
Income (loss)
before the
undernoted (2,073) 516
Equity loss in
PointBase Inc. (1,674) -
--------- ---------
Net income (loss) $ (3,747) $ 516
========= =========
Basic earnings
(loss) per share (37 cents) 5 cents |
