| Contacts: | ||
| Tracy Staniland | Peter Cauley | Stephen Greene |
| Director of Marketing | Chief Financial Officer | Brodeur Worldwide |
| DataMirror Corporation | DataMirror Corporation | 617-587-2872 |
| 905-415-0310 ext. 274 | 905-415-0310 ext. 271 | sgreene@brodeur.com |
| tstaniland@datamirror.com | pcauley@datamirror.com |
DataMirror Announces Full Year Results for Fiscal 2004
GAAP earnings of $5.7 million or $0.50 per share
Cash flow from operations of $10.2 million
TORONTO, CANADA - (March 8, 2004) - DataMirror (Nasdaq: DMCX; TSX: DMC), a leading provider of secure data integration, audit and protection solutions, today announced its financial results for the full year and fourth quarter of fiscal 2004.
Revenue for the year ended January 31, 2004 was $60.0 million, as compared to $62.5 million for the year ended January 31, 2003, a decrease of 4.0%. Reported in US currency, revenue for the year ended January 31, 2004 was $43.7 million, as compared to $39.9 million for the year ended January 31, 2003, an increase of 9.4%. The GAAP net income for the year ended January 31, 2004 was $5.7 million or $0.50 per share, as compared to a net loss of $2.2 million or ($0.19) per share for the year ended January 31, 2003. Cash, cash equivalents and short-term investments stood at $42.0 million or $3.70 per common share outstanding at the end of the year.
Revenue for the quarter ended January 31, 2004 ("Q4 fiscal 2004") was $16.4 million compared to $17.8 million for the quarter ended January 31, 2003 ("Q4 fiscal 2003"). Reported in US currency, revenue for Q4 fiscal 2004 was $12.5 million compared to $11.4 million for Q4 fiscal 2003, an increase of 9.6%. The GAAP net income for Q4 fiscal 2004 was $1.5 million or $0.14 per share compared to net income of $3.3 million or $0.29 per share for Q4 fiscal 2003. Cash flow from operations for Q4 fiscal 2004 was $4.3 million or $0.38 per share compared to $6.5 million or $0.57 per share in Q4 fiscal 2003.
The overall gross margin for Q4 fiscal 2004 was 81.0%, as compared to 82.5% for Q4 fiscal 2003. Gross margin on maintenance and services was 60.5% in Q4 fiscal 2004, as compared to 61.1% in Q4 fiscal 2003. Total costs, including costs of revenue, were $14.4 million for Q4 fiscal 2004, up from $13.2 million in Q4 fiscal 2003 and from $13.5 million in the previous quarter. Total
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headcount was 299 at January 31, 2004 as compared to 276 at January 31, 2003 and up from 284 at the end of the previous quarter.
During the fourth quarter the Company added 53 new customers to its global account base, who accounted for 36% of the quarter's licence revenue. Key customer wins included: BASF IT Services Ltd., Coldwater Creek, Geac/Extensity, Limit Underwriting Limited, Merck Inc., Moscow Narodny Bank, QRS Inc., Specialist Computer Holdings and Unify Corporation. Existing customers such as Abitibi Consolidated, Countrywide Home Loans, Inc., Dean Foods, Glaxo Smith Kline, Johnson Diversey, Inc., Nestle, Tiffany & Co., The TJX Companies, Inc. and Verizon Wireless also made significant additional purchases of our software.
"On a full year basis, fiscal 2004 was a breakthrough year for DataMirror. GAAP earnings for the year were the highest in the company's history and cash flow continued to be excellent. While the results for our fourth quarter were affected by continued Canadian currency volatility during the quarter, and were near the low end of the earnings expectations we set after purchasing PointBase, sales activities and other developments in the quarter bode well for the first quarter of fiscal 2005 and the full year," Mr. Nigel Stokes, DataMirror CEO commented, "Year over year license revenue in US dollars was up by 3.8% and total revenue in US dollars was up 9.6% compared to the fourth quarter of last year. Canadian dollar cash balances were up 8.2% year over year and a near term record of 53 new customers adopted our software solutions during the quarter."
Business Outlook:
In the first quarter of fiscal 2005, DataMirror expects to earn GAAP net income in the range of $0.09 to $0.14 per share. This includes the effect of adopting the recommendations in section 3870 of the CICA handbook concerning the expensing of stock option grants.
DataMirror will hold a webcast and conference call to present the results for the fourth quarter at 5:00 p.m. EST today, March 8, 2004. The conference call can be accessed via audio web cast by visiting http://www.datamirror.com. Participants in the conference call are asked to call 1-800-500-0311 at approximately 4:55 p.m. EST on March 8th using reservation number 748375. Participants may also view an on-line presentation during the call by visiting http://datamirror.webex.com/webex and clicking on the meeting "DataMirror Announces Fourth
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Quarter Results" hosted by Peter Cauley, CFO and Nigel Stokes, CEO, DataMirror. A replay of the conference call will be available until March 14, 2004 by dialing 1-888-203-1112 using reservation number 748375 or visiting http://www.datamirror.com/investors/.
About DataMirror
DataMirror (Nasdaq: DMCX; TSX: DMC), a leading provider of secure data integration, audit and protection software, gives companies the power to manage, monitor and protect their corporate data in real-time. DataMirror's comprehensive family of LiveBusinessTM solutions enables customers to easily and cost-effectively capture, transform and flow data throughout the enterprise. DataMirror unlocks the experience of nowTM by providing the instant data access, integration and availability companies require today across all computers in their business.
Over 1,800 companies have gone live with DataMirror software including Debenhams, Energis, GMAC Commercial Mortgage, the London Stock Exchange, OshKosh B'Gosh, Priority Health, Tiffany & Co., and Union Pacific Railroad. DataMirror is headquartered in Toronto, Canada, and has offices around the globe. For more information, visit www.datamirror.com.
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"Safe Harbour" 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 harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements of plans, objectives, strategies and expectations. The words "anticipate", "believe", "estimate" and "expect" and similar expressions are intended to identify forward-looking statements. Numerous important factors affect DataMirror's operating results and could cause DataMirror's actual results to differ materially from the results indicated by this press release or by any forward-looking statements made by, or on behalf of, DataMirror, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: the difficulty of developing, marketing and selling new products successfully; variability of quarterly operating results; dependence upon the continued growth and success of DataMirror's software products; competition; rapid technological change and new product introductions; dependence upon continued growth in the database and enterprise data integration markets; dependence upon relationships with complementary vendors and distribution channels; the ability to recruit and retain key personnel; risks of international operations, including currency exchange rate fluctuations and global economic conditions; possible software errors or defects; possible infringement claims by third parties; and other factors discussed in the DataMirror's Annual Information Form and other periodic filings with the United States Securities and Exchange Commission and other regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those indicated in any forward-looking statements. DataMirror disclaims and does not assume any obligation to update these forward-looking statements.
Copyright 2004 DataMirror Corporation. All rights reserved. DataMirror, LiveBusiness, Transformation Server, and The experience of now are trademarks or registered trademarks of DataMirror Corporation. All other brand or product names are trademarks or registered trademarks of their respective companies.
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DataMirror Corporation
Consolidated Balance Sheets
(Thousands of CDN$)
| January 31, | January 31, | |
| 2004 | 2003 | |
| (unaudited) | (audited) | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $9,286 | $13,025 |
| Short-term investments | 32,720 | 25,802 |
| Accounts receivable | 11,797 | 12,455 |
| Prepaid expenses | 1,803 | 1,618 |
| Future income taxes | 2,540 | 2,578 |
| 58,146 | 55,478 | |
| Capital assets | 3,845 | 3,931 |
| Investment tax credits recoverable | 1,019 | 1,664 |
| Investments | 12,185 | 9,768 |
| Intangibles | 5,853 | 7,388 |
| Goodwill | 5,175 | 3,118 |
| $86,223 | $81,347 | |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | $5,544 | $5,120 |
| Deferred revenue | 18,839 | 18,137 |
| Income taxes payable | 1,785 | 993 |
| Current portion of capital lease obligations | 32 | 89 |
| 26,200 | 24,339 | |
| Future income taxes | 1,076 | 1,505 |
| Capital lease obligations | 0 | 33 |
| 27,276 | 25,877 | |
| Shareholders' Equity | ||
| Share capital | ||
| Common shares (January 31, 2004 - 11,364,952 | ||
| January 31, 2003 - 11,461,142) | 64,625 | 64,637 |
| Deficit | -5,180 | -8,669 |
| Cumulative translation adjustment | -498 | -498 |
| 58,947 | 55,470 | |
| $86,223 | $81,347 |
DataMirror Corporation
Consolidated Statements of Income (Loss)
(Thousands of CDN$, except per share data - unaudited)
| Three Months Ended | Twelve Months Ended | |||
| January 31, | January 31, | |||
| 2004 | 2003 | 2004 | 2003 | |
| Revenue | ||||
| Licence | $8,663 | $9,938 | $29,087 | $33,223 |
| Maintenance | 6,260 | 6,173 | 25,354 | 23,210 |
| Services | 1,432 | 1,669 | 5,551 | 6,057 |
| 16,355 | 17,780 | 59,992 | 62,490 | |
| Cost of revenue | ||||
| Licence | 68 | 59 | 234 | 239 |
| Maintenance and services | 3,041 | 3,052 | 11,389 | 12,605 |
| 3,109 | 3,111 | 11,623 | 12,844 | |
| Gross margin | 13,246 | 14,669 | 48,369 | 49,646 |
| Operating expenses | ||||
| Selling and marketing | 5,689 | 5,308 | 20,524 | 21,289 |
| Research and development | 2,636 | 2,114 | 9,753 | 10,459 |
| General and administration | 2,150 | 1,942 | 7,946 | 8,812 |
| Amortization of intangibles | 794 | 685 | 3,098 | 2,740 |
| 11,269 | 10,049 | 41,321 | 43,300 | |
| Operating income | 1,977 | 4,620 | 7,048 | 6,346 |
| Investment income | 300 | 201 | 1,146 | 611 |
| Other income | 0 | 0 | 279 | 0 |
| Impairment of investment in PointBase, Inc. | 0 | 0 | 0 | -4,595 |
| Equity loss from investment in PointBase, Inc. | 0 | 0 | 0 | -2,081 |
| Income (loss) before income taxes | 2,277 | 4,821 | 8,473 | 281 |
| Income tax expense | 744 | 1,571 | 2,788 | 2,434 |
| Net income (loss) | $1,533 | $3,250 | $5,685 | ($2,153) |
| Earnings (loss) per share | ||||
| Basic | $0.14 | $0.29 | $0.50 | ($0.19) |
| Fully diluted | $0.13 | $0.28 | $0.49 | ($0.19) |
| Weighted average number of | ||||
| shares outstanding (000's) | ||||
| Basic | 11,304 | 11,388 | 11,364 | 11,411 |
| Fully diluted | 11,677 | 11,569 | 11,671 | 11,411 |
DataMirror Corporation
Consolidated Statements of Cash Flows
(Thousands of CDN$ - unaudited)
| Three Months Ended | Twelve Months Ended | |||
| January 31, | January 31, | |||
| 2004 | 2003 | 2004 | 2003 | |
| Cash provided by (used in) | ||||
| Operating activities | ||||
| Net income (loss) | $1,533 | $3,250 | $5,685 | ($2,153) |
| Add (deduct) items not affecting cash: | ||||
| Amortization of capital assets | 385 | 186 | 1,410 | 1,630 |
| Amortization of intangibles | 794 | 685 | 3,098 | 2,740 |
| Other income | 0 | 0 | -279 | 0 |
| Losses from investment in PointBase, Inc. | 0 | 0 | 0 | 6,676 |
| Future income taxes | -473 | -263 | -970 | -328 |
| Investment tax credits | 197 | 530 | 645 | 776 |
| Non-cash operating expense | 0 | 20 | 32 | 186 |
| Non-cash interest expense | 0 | 0 | 0 | 63 |
| Non-cash foreign exchange loss | 0 | 0 | 0 | 59 |
| 2,436 | 4,408 | 9,621 | 9,649 | |
| Changes in non-cash working capital balances | 1,849 | 2,071 | 542 | 6,259 |
| 4,285 | 6,479 | 10,163 | 15,908 | |
| Investing activities | ||||
| Capital asset additions | -392 | -270 | -1,190 | -1,859 |
| Purchase of short-term investments | 0 | 0 | -32,720 | -25,802 |
| Sale of short-term investments | 0 | 0 | 25,802 | 27,422 |
| Net assets acquired, excluding cash | -1,328 | 0 | -1,328 | 0 |
| Investment in Idion | -332 | -40 | -2,417 | -8,949 |
| Acquisition of technology | 0 | -332 | -30 | -332 |
| Other income | 0 | 0 | 279 | 0 |
| -2,052 | -642 | -11,604 | -9,520 | |
| Financing activities | ||||
| Capital lease payments | -10 | -28 | -90 | -114 |
| Repayment of long-term liabilities | 0 | 0 | 0 | -1,586 |
| Issuance of share capital | 876 | 454 | 1,779 | 821 |
| Repurchase of share capital | -276 | -122 | -3,987 | -1,557 |
| 590 | 304 | -2,298 | -2,436 | |
| Increase (decrease) in | ||||
| cash and cash equivalents | 2,823 | 6,141 | -3,739 | 3,952 |
| Cash and cash equivalents | ||||
| Beginning of period | 6,463 | 6,884 | 13,025 | 9,073 |
| End of period | $9,286 | $13,025 | $9,286 | $13,025 |
