DataMirror Offers Year-End iCluster Deal, Reports Sales and Profits Are Up
Corrected: November 27, 2006
by Timothy Prickett Morgan
High availability and data replication software maker DataMirror last week said that it was extending a discount deal on its iCluster high availability software for the OS/400 and i5/OS platform into next year. The company also reported its financial results for its third quarter of fiscal 2007.
Like other HA software vendors in the System i market, DataMirror is trying to capitalize on the revamped i5 Capacity BackUp server line, which IBM widened considerably this summer, and special financing and discount deals IBM has in place for the i5 line. DataMirror has been offering a 50 percent discount on the second license to its iCluster HA software for customers in an HA pair. That deal was set to expire, but now DataMirror says it will be in effect until January 15, 2007.
On the financial front, DataMirror says that it had revenues of $11.8 million (U.S. dollars, not Canadian dollars) in its fiscal third quarter, up 13.6 percent compared to the same quarter last year. Software license sales in the quarter were $4.7 million, up 25.4 percent. Net income for the quarter came to $1.33 million, or 21 cents a share, compared to $535,000 or 6 cents per share a year ago. For the nine months in fiscal 2007, DataMirror had sales of $33.2 million, up 3.4 percent, and a net income of $3.14 million or 42 cents per share, up 8 percent.
"We are pleased to report that year-over-year growth accelerated this quarter," said Nigel Stokes, chief executive officer at DataMirror, in a statement accompanying the financial results. "Pipelines for the balance of fiscal 2007 are strong. Record levels of profitability are expected for the year as a whole. While sales execution can still be improved, the investments we have made to grow customer interest in DataMirror solutions are leading to improved revenue growth and profitability."
DataMirror said that it expected sales would be between $13 million and $14 million in the fiscal fourth quarter, and net income would be in the range of 25 cents to 32 cents per share. The company added that for fiscal 2008, it estimates sales will be in the range of $52 million to $55 million, and net income would come in between $1.10 and $1.35 per share. Despite the merger of rivals Vision Solutions and iTera and the continuing competitive pressure from Lakeview Technology, DataMirror is forecasting increasing sales and a pretty substantial increase in profits in its coming fiscal 2008.
DataMirror exited the quarter with $15.7 million in cash and equivalents at the end of the quarter, and 241 employees.
This story has been changed since it was originally published. DataMirror's financial results were reported in U.S. dollars, not Canadian dollars, even though it is traded on the Toronto Stock Exchange. IT Jungle regrets the error.