Day Software Revenue Leaps 33% in First Half 2009

Wednesday, 29. July 2009 06:00
Record Customer Growth Drives 11% Operating Income and Strong GAAP
Profitability

Basel, Switzerland and Newport Beach, California - 29 July 2009 - Day
Software Holding AG (SIX: DAYN, OTCQX: DYIHY), a leading supplier of
content management and content infrastructure software, today
announced strong revenue growth and a return to GAAP profitability
for the first half of 2009.

Day reported total revenues of CHF 17.0M, an increase of 33% from
total revenue of CHF 12.8M for the first half of 2008. License
revenue accounted for 42% of total revenue at CHF 7.2M, an increase
of 26% from total license revenue of CHF 5.8M for the first half of
2008. Strong customer renewals drove CHF 5.4M in support and
maintenance revenue, or 32% of total revenue, with services revenue
totaling CHF 4.4M for the period. Day also reported operating income
of CHF 1.8M, or 11% of revenue, and better-than-expected GAAP net
income of CHF 1.1M, or 6% of revenue. Total cash was CHF 18.3M, a 21%
increase over 1H 2008.

"Despite the continued difficult economic environment, we enjoyed
incredible momentum in the first half of 2009," said Erik Hansen,
CEO, Day Software. "In Q2 alone, we saw 18 new customers make a
significant investment in Day as CQ5 continues to take market share
and represent a solid alternative to legacy Web 1.0 content
management systems. We have also seen a significant increase in
customer reorders as our installed base updates to CQ5 and takes
advantage of our recently released CQ 5.2 Digital Asset Management
(DAM) and Social Collaboration (SoCo) modules."

In addition to strong revenue growth, Day also reaped the benefits of
the operational restructuring highlighted in its second-half 2008
earnings announcement. Commented Hansen, "In Q4 2008, we took the
decision to focus the company on its core business and to make the
financial structure of the company more transparent and thereby ready
for the 2009 economy. In addition, we invested in new sales capacity
in the United States and Europe and strengthened marketing and
channel development resources. I am pleased that the hard decisions
we made in Q4 2008 have yielded not only strong revenue growth, but
also better-than-expected operating results with our early return to
GAAP profitability and 6% reported net income."

Customer Success Highlights
* Day significantly increased its rate of customer acquisition,
winning 18 new customers globally in Q2, including a major new win
at Adobe. Other major new wins in the United States in the first
six months of 2009 include General Motors (GM), U.S. Army, Arbella,
RAND, the University of Cincinnati and Boston College. Major new
wins in Central Europe include Boehringer, Fraport, SIKA, and the
European Space Organization.
* Day also saw additional wins from its added sales capacity. Day
added Virgin Media and Associated Northcliff Digital in the U.K.,
LaRedoute in France, Telecom Italia in Italy, and Starhub and the
Singapore Government in Singapore.
* Day drove significant reorders as a result of strong installed base
uptake of CQ5 and Day's newly released DAM and Social Collaboration
offerings. Major reorders included City of Chicago, F5 Networks,
Sephora, Nissan, Volkswagen, Daimler, City of Zurich, and Sonova.

Product and Industry Leadership Highlights
* In March 2009, Day released its CQ 5.2 Digital Asset Management
(DAM) and Social Collaboration (SoCo) applications. Built atop a
shared ECM platform and unified user experience, CQ 5.2 Web Content
Management (WCM), DAM, and Social Collaboration as a combined suite
drove increased win rates and migration from traditional, legacy
Web 1.0 vendors.
* In April 2009, Day announced that Day's CTO, David Nuescheler, was
named Star Spec Lead by the Java Community Process (JCP) for his
work driving the JSR-170 and JSR-283 standards. Day also announced
its efforts on the Content Management Interoperability (CMIS) draft
specification, including sponsorship of a new Apache incubator
project, Apache Chemistry, to serve as a vendor-neutral, shared
reference implementation.

Business Highlights
* Day significantly grew its worldwide ecosystem of solution
providers. Accelerated demand for Day's new CQ5 solution spurred
strong new business relationships with partners globally, including
MRM, Digitas, Thoughtworks, Logica, Sapient, Acuity, and NCS
Singapore amongst others.
* Day launched two new regional offices in Europe in the first half
of 2009, opening new offices in Milan, Italy, and Paris, France. In
Milan, Day hired industry veteran Bruno Degradi, formerly of
Computer Associates (CA) and Netegrity. In Paris, Day hired Web
Content Management veteran Lynda Lartique, former Country Manager
for France and Belgium for Interwoven. Day's expanded market
presence in Europe drove new channel relationships and immediate
sales traction in the period.
* In May 2009, Day announced the addition of two new members to its
Board of Directors. Industry veterans Barry Bycoff and David Arnott
joined Day's Board to help Day continue momentum around CQ5 and
assist in new strategic growth initiatives.

"We had an exceptionally strong 1H 2009," said CEO Hansen. "Our
operational improvements, new sales capacity, and new products
doubled our rate of customer acquisition and grew our revenues at
rates well ahead of overall industry. We demonstrated excellence in
execution in all three key areas: top-line revenue growth,
bottom-line earnings growth, and a healthy increase in overall cash
position.

Hansen concluded: "While the economy remains uncertain, we continue
to see strong interest in Day solutions in our core CMS market as
organizations invest in their online channel. We remain cautiously
optimistic about the second half of the year. As a result, we
anticipate a further step-up in our sales and marketing investments
over the next two quarters to make the company ready for an even
stronger 2010."

About Day - www.day.com

Day Software is the ECM pioneer that leading global enterprises
rely on for their Web 2.0 content application and content
infrastructure needs. Day's Content Repository Extreme (CRX) is the
industry's leading Java Content Repository (JCR) that provides
unique virtualization services to consolidate legacy repositories
and unique cloud computing services to lower IT operational costs.
Day's CQ5 provides industry-leading Web Content Management, Digital
Asset Management, and Social Collaboration in a single, unified
suite and won the 2009 InfoWorld Technology of the Year Award for
"Best Web CMS".

Day is an international company with headquarters in Basel,
Switzerland and Newport Beach, California, traded since April 2000
on the SIX Swiss Exchange, and "Over the Counter" (OTC) as American
Depositary Receipts (OTCQX:DYIHY). Day's customers are worldwide
leading global enterprises, including: Adobe, Audi, Volkswagen,
Daimler, General Motors, Nissan, Williams-Sonoma, Sephora,
University of Phoenix, InterContinental Hotels Group, and
McDonald's.

A Warning Regarding Forward-looking Statements

This press release may contain forward-looking statements regarding
future events or the future performance of Day Software Holding AG
and its subsidiaries (the "Company"). Words such as "expects,"
"plans," "believes," "may," "will," and variations of these words
or similar expressions are intended to identify forward-looking
statements. These statements speak only as of the date hereof. Such
information is subject to change, and we will not necessarily
inform you of such changes. Actual events or results, of course,
could differ materially and adversely from those expressed in any
forward-looking statement. The Company does not make filings (e.g.,
Forms 10-K and 10-Q) with the Securities and Exchange Commission
under the Securities Exchange Act of 1934.

For Further Information

Peter Nachbur
Day Software AG
Barfuesserplatz 6
4001 Basel, Switzerland

T +41 61 226 98 98
E-Mail: peter.nachbur@day.com

Further and more detailed information on the financial results for
the first half year 2009 will be published mid-August on the
Investor Relations section of Day's website. Supplementary
financial information for Q2 2009 is available immediately at
http://www.day.com/investors/financialreports.html.

The English text of this press release represents the binding
version.



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