DataMirror Corp. Reports Record Fourth-Quarter And Annual Results For Fiscal 2000 - Company Financial Information

Cambridge Telcom Report, March 20, 2000

DataMirror Corp. (TSE: DMC), a leading provider of business data integration software for the wired and wireless world, Thursday announced its financial results for the fourth quarter and the fiscal year ended January 31, 2000.

Revenue for the fourth quarter of fiscal 2000 was $12,586,000, the highest quarterly revenue ever for DataMirror. Operating income for the fourth quarter (excluding the pro rata share of losses resulting from the company's investment in PointBase) was $1,168,000 or $0.12 per share, compared to a loss of $994,000 or $(0.10) per share for the same period in fiscal 1999. Net income was $109,000 or $0.01 per share compared to a loss of $994,000 or $(0.10) per share for the fourth quarter of fiscal 1999. EBITDA for the period was $2,330,000, compared to a loss of $1,012,000 for the same period of fiscal 1999.

Revenue for the year ended January 31, 2000 reached the record level of $42,174,000, compared to $33,593,000 for fiscal 1999. The company had an operating loss for the year (excluding the pro rata share of losses resulting from the company's investment in PointBase) of $136,000 or $(0.01) per share compared to an operating loss of $460,000 or $(0.04) per share for the prior year. The company's net loss for fiscal 2000, including PointBase equity accounting was $1,429,000 or $(0.14) per share compared to a loss of $460,000 or $(0.04) per share for fiscal 1999 (DataMirror did not equity account for PointBase in fiscal 1999). EBITDA for the year was $3,014,000, compared to $813,000 for fiscal 1999, representing a 271% increase.

Gross margin for the fourth quarter was 84.5% compared to 73.2% for the same period in fiscal 1999. Operating expenses for the fourth quarter were $9,038,000 compared to $9,037,000 for the same period in fiscal 1999 and up slightly from $8,591,000 for the third quarter of fiscal 2000.

"We're pleased with our strong revenue growth and increasing margins," said Nigel Stokes, President and CEO of DataMirror. "We believe that this growth combined with the cost control measures instituted in our second quarter have significantly improved results through-out the year. For the third straight quarter, we have grown revenue and managed expenses resulting in the highest quarterly operating profit in our history. This is DataMirror's thirteenth public quarter. Since our IPO, organic growth has more than quadrupled revenue. All of the capital invested in DataMirror through venture rounds and the public markets is still reflected on the balance sheet as cash, working capital or our investment in PointBase. The B2B, e-Business infrastructure and data synchronization needs for wired and wireless applications are becoming ever more important. The hard-work, vision and focus of our team is leading to significant market success and ranks us well against comparable North American software companies."

Significant milestones achieved by DataMirror in the fourth quarter of fiscal 2000 included the following:

-- E-Business revenue doubled. Sales of Transformation Server for e-Business applications more than doubled compared to the previous quarter. In addition to continued sales to DataMirror's existing e-Business customer base, nine new customers purchased Transformation Server as part of their e-Business solution.

-- Over 100 new customers added. During the quarter, the company welcomed over 100 new customers, bringing its total customer base to over 1,000. The adoption of High Availability Suite was particularly strong, with 46 new customers choosing it as their backup and recovery solution. Since it's introduction in November 1998, over 190 customers have purchased High Availability Suite.

-- Improved contribution from channel sales. Channel contribution in the fourth quarter was particularly strong, representing 48% of licence revenue, compared to 36% in the prior quarter and 28% in the fourth quarter of last year.

-- Strengthened customer relationships. DataMirror hosted its second annual user conference, Transcend '99, at Walt Disney World and its second Customer Advisory Council meeting.

-- Early adoption of Transformation Server for OS/390. A leading U.S. travel reservation technology provider became an early adopter of Transformation Server for OS/390. This company provides global communications and electronic distribution of information for travel service providers and supplies reservation services to travel agencies worldwide.

-- Transformation Server chosen for data infrastructure to speed claims processing. In January, 2000, GFDI and three of Belgium's five heathcare unions, representing 2.6 million people or 26% of Belgium's population, selected Transformation Server for enterprise-wide deployment to facilitate automated business-to-business integration and ensure future growth.

-- Crossroads A-List Awards. The Crossroads A-List Awards recognize the proven solutions that meet today's critical business challenges. Transformation Server and its implementation by GMAC Commercial Mortgage were honored with an A-List Award for Enterprise Integration in the group "Technology Infrastructure." Transformation Server and GMAC were the sole recipients of the Crossroads 2000 A-List Achievement Award. This award goes to the customer/vendor team that have executed the most aggressive business strategies with the most aggressive technologies, resulting in a competitive advantage.