TORONTO, CANADA--
* Revenue of $13.1 million, highest quarterly revenue in Company's
history
* Net income for the quarter of $4.9 million or $0.43 per share
* Adjusted net income for the quarter of $1.1 million, up 1,100%
* Key e-Business integration and resiliency wins drive momentum
DataMirror Corporation (TSE: DMC - news), a leading provider of e-Business data integration and resiliency solutions, today
announced record financial results for the second quarter of the fiscal year 2001.
Revenue for the second quarter of fiscal 2001 was $13,097,000, an increase of 29% over the second quarter of fiscal 2000
and the highest quarterly revenue in the Company's history. Net income was $4,947,000 or $0.43 per share compared to a net
loss of $898,000 or $(0.09) per share for the second quarter of fiscal 2000. Net income for the second quarter excluding the
dilution gain and equity loss resulting from the Company's investment in PointBase (``adjusted net income'') was $1,116,000 or
$0.10 per share, compared to $101,000 or $0.01 per share for the same period in fiscal 2000, an increase of over 1,100%.
EBITDA for the period was $1,442,000, an increase of over 70% from the same period in fiscal 2000. Cash flow from
operations for the quarter was $1,684,000, an improvement of over 50% over the same period in fiscal 2000.
Operating expenses for the second quarter were $9,998,000 compared to $8,247,000 for the same period in fiscal 2000 and
up from $8,655,000 for the first quarter of fiscal 2001. Overall headcount increased from 231 to 262 during the quarter.
Revenue for the six months ended July 31, 2000 was $24,446,000, compared to $18,230,000 for the same period last year,
an increase of 34%. The first six months of the fiscal year contributed 43% and 42% to the Company's annual revenue totals in
fiscal 2000 and 1999, respectively. Net income for the six months ended July 31, 2000 was $4,539,000 or $0.41 per share,
compared to a loss of $3,747,000 in the previous fiscal year. Adjusted net income for the six months ended July 31, 2000 was
$1,813,000, an improvement of $3,886,000 over the first six months of fiscal 2000.
``We're extremely pleased with this quarter's results,'' commented Nigel Stokes, Chairman, President and CEO of DataMirror
Corporation. ``We achieved the highest quarterly revenue in the Company's history and posted our fifth straight quarter of
positive operating results. On a trailing twelve-month basis, the Company's results are robust, with almost $48.4 million in
revenue, net income of over $6.8 million and positive cash flow from operations of $4.5 million. Our balance sheet continues to
be strong, with $41 million in cash reserves, and working capital of over $44 million. We were also successful in recruiting the
talent needed to capitalize on the opportunities for our technology as we enter the third and fourth quarters, traditionally our
busiest period.''
Significant milestones achieved since the beginning of the second quarter of fiscal 2001 included:
* Reached milestone of 1,160 customers. Added 80 new customers in the second quarter, contributing almost 65% of licence
revenue.
* Leading consulting firm signs multi-million dollar deal for global enterprise-wide data infrastructure. A leader in the consulting
industry implemented Transformation Server technology globally to integrate Mainframe, Oracle and Microsoft SQL Server
data in real-time.
* Continued adoption from existing customers. A number of existing Transformation Server customers, including Barclay's
Group, Baxter Healthcare Corporation, HJ Heinz Inc., HSBC Asset Management, and W.L. Gore & Associates, made
significant additional investments in our technology.
* Applied for NASDAQ listing. DataMirror applied to have its common shares listed on the NASDAQ National Market under
the trading symbol ``DMCX.'' A listing on NASDAQ will help DataMirror further increase visibility and coverage in the United
States, which is currently the largest market for the Company's software products.
* High Availability Suite Version 3.5 released. This new version of High Availability Suite product represents a breakthrough in
performance, ease of use and resiliency for e-business implementations, utilizing state-of-the-art byte stream file recording to
manage the underlying Integrated File System (IFS) requirements of e-Business applications and Enterprise Resource Planning
(ERP) software.
* Expanded Asia Pacific operations. A new field office was established in Hong Kong with Mr. Angelo Lai appointed as Vice
President, Asia Pacific. Mr. Lai, formerly of IBM, will be instrumental in leading DataMirror into the diversified Asian and
Pacific rim markets covering over fifteen countries from Japan to Australia to India.
* Invested an additional US$4 million in PointBase, Inc. DataMirror participated in the fourth round of financing of PointBase,
Inc., a Java database developer located in Mountain View, California. PointBase raised approximately US$21 million from this
financing, led by Goldman Sachs with participation by other well-known investors.
* Introduced breakthrough in wireless technology. Transformation Server software now supports wireless administration of
data via smart-phones and mobile Internet devices. With iTransmit, DataMirror's wireless Enterprise Administrator, any
Transformation Server administrator with a micro-browser equipped wireless phone or mobile Internet device can access,
monitor and manage data replication between multiple databases and computing platforms from anywhere and at any time.
* Introduced breakthrough XtremeCache technology for continuous availability. Exclusive XtremeCache technology for
iCluster and High Availability Suite optimizes the flow of data into and out of a high speed software cache. This breakthrough
performance enhancement is designed to help customers attain near zero latency for system backup and recovery. Now even
companies with extremely high transaction volumes can rely on DataMirror's resiliency solutions to keep their e-Business, ERP,
banking and financial applications running 24 hours a day.
Comments from the Chair:
``Companies continue to invest in B2B and B2C e-Business as a way to improve operational efficiencies and enhance customer
experiences,'' said Mr. Stokes. ``A number of key e-Business customer wins are driving our momentum as industry leaders
licence our unique real-time capture, transform and flow (CTF) data integration technology to link their e-Business servers,
operational systems and legacy data and ensure a continuous, instant flow of information across their business.''
``Customers are standardizing on our technology for large enterprise-wide implementations, and they are making long-term
commitments by signing multi-year maintenance subscriptions with us,'' Stokes continued. ``In the latest quarter, for the first
time in the Company's history, over 50% of licence revenue came from customer transactions over $100,000.''
``Mobile e-Business initiatives are on the rise with new wireless Internet applications, but mobile and wireless applications
require the ability to store, manage and synchronize vast amounts of data between wireless devices and corporate systems.
Together, DataMirror and technology partner PointBase are well-positioned to address this emerging opportunity,'' Mr. Stokes
concluded.
About DataMirror Corporation
DataMirror (TSE: DMC - news) delivers solutions that let customers integrate their data for competitive insight and e-Business
resiliency. DataMirror's comprehensive family of products includes advanced real-time capture, transform and flow (CTF)
technology, that gives customers the instant access, integration and availability they demand today across all computers in their
business.
``Safe Harbor'' Statement under the United States Private Securities Litigation Reform Act of 1995: Forward-looking
statements in this press release, including statements regarding DataMirror Corporation's business which are not historical facts,
are made pursuant to the ``safe harbor'' provisions of the United States Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and uncertainties which could cause actual results to
differ from those forward-looking statements. For a discussion of such risks and uncertainties, please see DataMirror
Corporation's periodic filings with the United States Securities and Exchange Commission and other regulatory authorities.
Copyright (c) 2000 DataMirror Corporation. All rights reserved. DataMirror, Transformation server, High Availability Suite,
Enterprise Administrator, iCluster, iTransmit, and XtremeCache are trademarks or registered trademarks of DataMirror
Corporation. All other brand or product names are trademarks or registered trademarks of their respective companies.
For more information, call 1-800-362-5955 or visit the DataMirror web site at www.datamirror.com.
DataMirror Corporation
Consolidated Statements of Income (Loss)
(Thousands of CDN$, except per share data - unaudited)
Three Months Ended Six Months Ended
July 31, July 31,
------------------------------------------------------------------------
2000 1999 2000 1999
------------------------------------------------------------------------
Revenue
Licence $8,946 $7,115 $16,405 $12,119
Maintenance and consulting 4,151 3,029 8,041 6,111
------------------------------------------------------------------------
13,097 10,144 24,446 18,230
------------------------------------------------------------------------
Cost of revenue
Licence 73 139 133 216
Maintenance and consulting 2,174 1,602 4,107 3,560
------------------------------------------------------------------------
2,247 1,741 4,240 3,776
------------------------------------------------------------------------
Gross margin 10,850 8,403 20,206 14,454
------------------------------------------------------------------------
Operating expenses
Selling and marketing 5,848 5,106 10,638 10,636
Research and development 1,957 1,606 3,694 3,204
General and administration 1,989 1,239 3,913 2,455
Amortization of intangibles 204 296 408 572
------------------------------------------------------------------------
9,998 8,247 18,653 16,867
------------------------------------------------------------------------
Operating income (loss) 852 156 1,553 (2,413)
Investment income 449 55 635 168
------------------------------------------------------------------------
Income (loss) before income
taxes 1,301 211 2,188 (2,245)
Income tax expense (recovery) 185 110 375 (172)
------------------------------------------------------------------------
Income (loss) before the
under-noted 1,116 101 1,813 (2,073)
Gains (losses) from
investment in Pointbase, Inc.
Dilution gain 5,226 - 5,226 -
Equity loss (1,395) (999) (2,500) (1,674)
------------------------------------------------------------------------
Net income (loss) $4,947 ($898) $4,539 ($3,747)
------------------------------------------------------------------------
------------------------------------------------------------------------
Earnings (loss) per share
Basic $0.43 ($0.09) $0.41 ($0.37)
Fully diluted $0.40 * $0.39 *
Weighted average number of
shares outstanding (000's)
Basic 11,576 10,188 11,095 10,218
Fully diluted 12,497 * 12,016 *
* Anti-dilutive in these periods
(See accompanying note)
DataMirror Corporation
Consolidated Balance Sheets
(Thousands of CDN$)
July 31, January 31,
2000 2000
------------------------------------------------------------------------
(Unaudited) (Audited)
Assets
Current assets
Cash and short-term investments $41,100 $10,219
Accounts receivable 15,346 15,332
Prepaid expenses 1,247 1,059
------------------------------------------------------------------------
57,693 26,610
Capital assets 3,498 3,780
Investment tax credits recoverable 2,242 1,221
Investment in PointBase, Inc. 12,014 3,417
Intangibles 4,231 4,639
------------------------------------------------------------------------
$79,678 $39,667
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $3,424 $3,683
Deferred revenue 8,387 6,955
Current portion of long-term liabilities 846 890
Current portion of capital lease
obligations 497 703
------------------------------------------------------------------------
13,154 12,231
Long-term liabilities
Capital lease obligations 197 197
------------------------------------------------------------------------
13,351 12,428
------------------------------------------------------------------------
Shareholders' Equity
Share capital 65,645 30,773
Cumulative translation adjustment (498) (498)
Retained earnings (deficit) 1,180 (3,036)
------------------------------------------------------------------------
66,327 27,239
------------------------------------------------------------------------
$79,678 $39,667
------------------------------------------------------------------------
------------------------------------------------------------------------
(See accompanying note)
DataMirror Corporation
Consolidated Statements of Cash Flows
(Thousands of CDN$ - unaudited)
Three Months Ended Six Months Ended
July 31, July 31,
------------------------------------------------------------------------
2000 1999 2000 1999
------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net income (loss) $4,947 ($898) $4,539 ($3,747)
Add (deduct) items not affecting
cash:
Amortization of capital assets 386 394 735 762
Amortization of intangibles 204 296 408 572
(Gains) losses from
investment in Pointbase, Inc. (3,831) 999 (2,726) 1,674
Deferred income taxes - 110 - (172)
Non-cash foreign exchange
(gain) loss 25 89 (14) (123)
Investment tax credits recoverable - - - (147)
------------------------------------------------------------------------
1,731 990 2,942 (1,181)
Changes in non-cash working
capital balances (47) 98 1,087 1,200
------------------------------------------------------------------------
1,684 1,088 4,029 19
------------------------------------------------------------------------
Investing activities
Capital asset additions (155) (435) (255) (802)
Acquisition of mpc-Software GmbH - (224) - (224)
Investment in PointBase, Inc. (5,871) - (5,871) (1,800)
------------------------------------------------------------------------
(6,026) (659) (6,126) (2,826)
------------------------------------------------------------------------
Financing activities
Repayment of long-term
liabilities (18) (12) (30) (30)
Capital lease payments (203) (313) (405) (595)
Issuance of share capital 487 18 33,856 72
Repurchase of share capital (90) (156) (443) (789)
------------------------------------------------------------------------
176 (463) 32,978 (1,342)
------------------------------------------------------------------------
Increase (decrease) in cash
and short-term investments (4,166) (34) 30,881 (4,149)
Cash and short-term investments
Beginning of period 45,266 11,692 10,219 15,807
------------------------------------------------------------------------
End of period $41,100 $11,658 $41,100 $11,658
------------------------------------------------------------------------
------------------------------------------------------------------------
(See accompanying note)
DataMirror Corporation
Note to Consolidated Financial Statements
Quarter Ended July 31, 2000
1. Accounting for income taxes
Effective February 1, 2000 the Company changed its method of accounting for income taxes from the deferral method to the
liability method of tax allocation as provided for in the new recommendations of The Canadian Institute of Chartered
Accountants. As permitted under the new recommendations, the prior year's consolidated financial statements have not been
restated. The cumulative effect, as at February 1, 2000, of adopting these recommendations was not material. Also, adoption
of these recommendations did not have a material effect on the results of the quarter or six months ended July 31, 2000.
Contact:
DataMirror Corporation
Wayne Howard, Chief Financial Officer
(800) 362-5955 ext. 138
(905) 415-0340
whoward@datamirror.com
or
DataMirror Corporation
Tracy Staniland, Manager, Marketing and Communications
(800) 362-5955 ext. 274
(905) 415-5196
tstaniland@datamirror.com
www.datamirror.com |
