DataMirror Announces Record First Quarter Results

Business Wire, May 25, 2005

TORONTO & SANTA CLARA, Calif. -- DataMirror Corporation (NASDAQ:DMCX) (TSX:DMC), a leading real-time data integration company, today announced its financial results for the first quarter ended April 30, 2005. Please note that the Company changed its reporting currency to U.S. dollars effective February 1, 2005, accordingly all figures are in U.S. dollars unless stated otherwise. Comparative U.S. dollar financial statements for all the quarters of the fiscal year ended January 31, 2005 are included at the end of this press release.

Revenue for the first quarter rose 9 percent to a record Q1 level of $10.8 million from $9.8 million for the quarter ended April 30, 2004. License revenue increased 27 percent to $4.7 million, up from $3.7 million in the first quarter last year. GAAP net income was $800,000 or $0.08 per diluted share in Q1 F2006, compared to a net loss of $620,000 or ($0.05) per diluted share in Q1 last year. Cash flow from operations was $4.3 million, up from $1.5 million in Q1 last year. Cash, cash equivalents, and short-term investments stood at $33.3 million or $3.89 per common share outstanding at the end of the quarter.

"DataMirror delivered a record first quarter, with good license revenue growth, great cash flow and improved earnings, from the building momentum of our solutions," Nigel Stokes, DataMirror CEO commented. "Our refocused effort on partnering with clients to deliver innovative business solutions that continuously transform data into information is beginning to show results. More than 2,000 clients are releasing new business potential and gaining tangible competitive advantage with DataMirror. In today's economy the best companies compete and win in real-time."

Highlights:

- License revenue growth of 27 percent compared to Q1 last year, operating cash flow of $4.3 million;

- New partnership with BusinessObjects to bring the power of DataMirror's real-time data integration solutions to BusinessObjects(TM) XI and deliver comprehensive real-time BI solutions to mid-market and Fortune 500 customers;

- New partnership with The Normandy Group, to offer real-time data integration, business continuity, and regulatory compliance solutions to Normandy Group clients. The partnership will leverage DataMirror's solutions to extend The Normandy Group's business intelligence, business process, and enterprise resource planning business practices. The Normandy Group is a Cognos Pinnacle Partner and was recently named ScanSource Partner of the Year;

- Successful completion of our substantial issuer bid that returned Cdn. $20 Million to shareholders who tendered to the offer;

- Signed repeat business with 88 existing clients and signed 30 new clients, with two transactions greater than $500,000;

- Tripled the performance of our innovative and comprehensive mainframe real-time data integration solution. DataMirror mainframe clients include leading companies in the retail, manufacturing, pharmaceutical, and financial services sectors that use TS 4.7 for z/OS to solve business problems that call for data to be distributed between diverse systems in real-time.

Business Outlook:

"Business visibility for DataMirror is improving," continued Mr. Stokes. "We finished Q1 with increased demand that we expect to continue both in Q2 and throughout fiscal 2006. I am proud of the integrity, passion and innovation of the DataMirror team and thank all of them for their focused commitment to the success of DataMirror."

Management offers the following outlook for the full fiscal year, ending January 31, 2006 and for the second quarter ending July 31, 2005:

- For the 2006 fiscal year, the Company expects revenue to grow 10%-15% and be in the range of $45.0 to $47.0 million with GAAP, diluted, net income in the range of $0.33 to $0.37 per share.

- In the second quarter of fiscal 2006, the Company expects revenue to grow year over year by 10%-15% and be in the range of $10.8 to $11.3 million with GAAP, diluted, net income in the range of $0.09 to $0.12 per share.

These estimates assume a tax rate of 45 percent and include the expensing of stock options.

DataMirror management will hold a webcast and conference call to present the results for the first quarter and to outline the prospects for the business going forward at 5:00 p.m. EST today, May 25, 2005.

The conference call can be accessed via audio webcast at http://www.datamirror.com/investors. Participants should call 1-800-361-0912 using passcode 8178084. An online presentation is available by visiting https://datamirror.webex.com/datamirror and selecting the meeting "DataMirror Announces First Quarter Results". A replay of the conference call will be available at 8:00 p.m. EST via the DataMirror web site or by dialing 1-888-203-1112 using passcode 8178084.

About DataMirror

DataMirror (NASDAQ: DMCX - News; TSX: DMC - News), a leading provider of real-time data integration, protection and java database solutions, improves the integrity and reliability of information across all of the systems that create and store data. DataMirror's flexible and affordable integration solutions allow customers to easily and continuously detect, translate, and communicate information changes throughout the enterprise. DataMirror helps clients make better decisions by providing access to the continuous, accurate information they need to take timely action and move forward faster.