Datacolor reports significant growth in sales and earnings for fiscal 2009/10

In fiscal 2009/10, Datacolor successfully completed its reorganization as an independent company listed on SIX Swiss Exchange. The company is a major global manufacturer and supplier of software and hard­ware systems for color measurement and communication. Datacolor is the global market leader in the textile industry and in solutions for the calibration of monitors and printers and is systematically expanding its strong position in key markets such as the automotive and plastics industries, manufacturers of paints and dyes in the specialty chemicals sector, international cosmetics manufacturers, major food and beve­rages companies, the printing and packaging industry and global furniture manufacturers.

 

Substantial annual profit reflects strong operating performance

The growth strategy introduced as part of the reorganization already had a positive impact on the Group's sales and result in fiscal 2009/10. Net sales increased by a significant 16 percent to CHF 59.5 million (FY 2008/09: CHF 51.2 million). In local currencies the increase came to as much as 23 percent. Gross profit rose from CHF 29.0 million to CHF 37.9 million (margin: 63.6%), EBITDA from CHF -0.6 million to CHF 6.8 million (margin: 11.4%), EBIT from CHF -2.0 million to CHF 5.4 million (margin: 9.1%) and net profit from CHF 2.6 million to CHF 4.7 million. Datacolor is debt-free. It has a substantial net cash position of CHF 20.0 million (September 30, 2009: CHF 11.9 million) and a high equity ratio of 57.3 percent (59.7%). Based on the positive growth of profitability and the company's sound financial position, the Board of Directors is proposing to the Annual General Meeting of Shareholders that the dividend dis­tribution be increased to CHF 12.00 (previous year: CHF 3.00).

 

Strong revival in demand in all key markets

After the previous year's sharp downturn in the face of challenging economic conditions, Datacolor's sales markets saw a recovery in fiscal 2009/10. Major customers once again invested in efficiency and quality enhancement measures – including Datacolor's color management solutions. The Industrial Business Unit improved segment sales of instruments and software by 24 percent to CHF 32.7 million (CHF 26.4 million). Compared with the solid year-back result, service and support sales were up by 9 percent to CHF 14.3 million (CHF 13.1 million). The Consumer Business Unit increased sales of its innovative Datacolor Spyder products for the color calibration of cameras, monitors, printers and projectors by 7 percent year-on-year to CHF 12.5 million (CHF 11.7 million). The Asia-Pacific region expanded its share of sales slightly to 29 percent (28%) thanks to strong demand from China. With a 42 percent (43%) share of sales, Europe remains the largest market, while the share of Group sales attributable to North and South America remains unchanged compared with the previous year at 29 percent.

 

Numerous innovative products launched

With a view to speeding up the pace of innovation and new product launches, Datacolor once again in­vested key additional resources in the development of innovative color sensor technologies and in the expansion of its international sales and distribution organization. A total of nine new software and hard­ware products were successfully launched on the market during fiscal 2009/10. With a view to being able to flexibly address the individual requirements of the various industrial sectors and markets, Datacolor also invested in measures to position itself even more closely to its customers, including the opening of sales offices in Mumbai, India, and Shanghai, China. Datacolor will systematically press ahead with ex­panding its leading market position in the textile industry and the color calibration of monitors. It has also made key investments in new growth markets such as Brazil, China, India and Turkey and in industries and sectors with additional growth potential.

 

Consolidated financial statements to be presented in USD

The Datacolor Group posts a high proportion of its sales in EUR and USD countries. As production oper­ations are based in China – and in the US for strategic components – most costs are incurred in USD or in currencies which track the USD. The Board of Directors has therefore decided that from fiscal 2010/11 the Datacolor Group will prepare and publish the consolidated financial statements in USD. The financial statements of Datacolor AG (Holding) and share-related values will continue to be in CHF.

 

Outlook

The Datacolor Group has an industry-savvy management team, an efficient production site in China and a development pipeline replete with innovative color management and color calibration solutions. With its innovative capacity, its products and services focused on high-growth market segments, its greatly ex­panded international marketing and sales organization and its high profitability and sound financial situ­ation, Datacolor is well positioned – over the medium term and in conjunction with targeted acquisitions – to achieve its ambitious objectives for growth and returns.

 

Lucerne, November 30, 2010