Datacolor AG reports stable sales development in fiscal 2010/11
In fiscal 2010/11, Datacolor maintained its position as a major global manufacturer and supplier of color management and color calibration solutions. It is a global market leader in the textile and apparel sector and color calibration of monitors. Thanks to its high level of investment in new and innovative products and in enlarging its own sales organization, Datacolor is continually expanding its position and its proximity to customers in other key markets such as the automotive and plastics industries as well as manufacturers of paint and dyes in the specialty chemicals sector.
Stable sales – Result impacted by major investments in research and development for the future and the strength of the Swiss franc
Demand in most of Datacolor’s markets was stable in fiscal 2010/11. Datacolor’s net sales, which are consolidated in US-Dollar, reached USD 55.5 million (FY 2009/10: USD 56.1 million). The result was impacted by an increase in research and development expenditure of approximately one third compared to the previous year, by non-recurring personnel costs in connection with organizational adjustments and the strength of the Swiss franc. EBITDA came to USD 6.0 million (USD 6.4 million), EBIT to USD 4.7 million (USD 5.1 million) and net income to USD 3.8 million (USD 4.4 million). The EBITDA margin came to 10.7% (11.4%) and the EBIT margin to 8.5% (9.1%). The financial result, which was impacted by foreign exchange losses during the previous year, improved from USD -1.0 million to USD -0.1 million. Undiluted earnings per share decreased slightly in fiscal 2010/11 to USD 24.96 (USD 28.48). Datacolor is debt-free and has a substantial net cash position of USD 23.4 million and a solid equity ratio of 60.7% (September 30, 2010: 57.2%). In light of the company's good financial position, the Board of Directors is proposing to the AGM that a dividend of CHF 10 (CHF 12) be distributed for financial year 2010/11. During the period under review, the share of sales generated by the Asia Pacific region increased to 30.4% (29.2%), while North and South America accounted for 28.2% (28.8%) of sales. With a 41.4% (42.0%) share of Group sales, Europe remains the largest market. The average headcount increased by 20 to 278 full-time equivalents related to the geographical expansion of business activities.
Investments in the future
Datacolor is one of the world’s leading suppliers of software and hardware systems for color management. In order to further accelerate the pace of innovation and new product launches, Datacolor significantly increased its investment in research and development. At USD 6.6 million, 12% of net sales (FY 2009/10: 9%) was invested in new products. During the year under review, Datacolor launched MatchCOM, a powerful software package which allows industrial customers with their own color management solutions to use Datacolor's highly precise proprietary matching algorithms. The company also unveiled Select QC, a quality control tool with a very attractive price-performance ratio intended primarily for customers in new and emerging markets. Datacolor's SpyderGallery offers a practical solution for simple color calibration of iPad screens. The microchip-based mini-sensor reached market maturity in the year under review and was presented to OEM customers. A new portable measuring system is to be introduced for the automotive industry which will support significantly more precise color measurement within global supply chains. Marking a world premiere, an innovative imaging technology for customers in the textile industry is being launched which will for the first time ever enable precise color measurement on multicolored fabrics. The first half of 2011/12 will see the market launch of the completely redesigned and even more precise generation of the Datacolor Spyder product family for the calibration of monitors and printers. In the year under review, in addition to investment in research and development, Datacolor also invested in the expansion of its marketing and sales organization, particularly in China, India, Turkey and Brazil. Around thirty new jobs were created in China alone with the aim of being able to address the individual requirements of customers and the various markets even more flexible.
Datacolor has a young, industry-savvy management team and a lean and efficient functional organization. It has a successful range of products and services, a well-filled development pipeline and a strong sales organization operating in close proximity to its customers. Over the medium term, Datacolor's strong financial resources mean that it is well positioned to achieve its ambitious growth and return targets through targeted acquisitions. Provided the macroeconomic and global political environment develops along stable lines, Datacolor will further expand its market position.
Lucerne, November 29, 2011
The full Annual Report for fiscal 2010/11 can be downloaded from: http://www.datacolor.com/content/reports