Sales weaker in challenging currency environment – dividend of CHF 11 per share proposed

In fiscal 2014/15, Datacolor further consolidated its dominant market position as international provider for digital color management solutions in its core markets, notably the textile and apparel industries, as well as the retail market for display and printer calibration. In addition, the company secured growing market share in important markets such as the paint and coatings industry by providing a wide range of innovative, easy-to-operate software and hardware solutions for color measurement and communication as well as customer-centric services.

Sales amount to USD 66,8 Mio., EBIT reaches USD 4,4 Mio. and net income USD 3,2 Mio.

In fiscal 2014/15, Datacolor's net sales decreased to USD 66.8 million (2013/14 USD 70.0 million), however slightly increased by 2% in local currency. The result was negatively impacted by non-recurring large orders from the US pigment industry and significant currency effects. EBITDA was at USD 6.6 million (USD 6.5 million) and EBIT at USD 4.4 million remained on previous year’s level. Net profit decreased to USD 3.2 million (USD 4.1 million). Datacolor has a strong net cash position of USD 25.9 million (USD 28.5 million), including financial assets, as well as a high equity capital ratio of 63.3% (September 30, 2014: 60.3%). Owing to the solid balance sheet and the fact that Datacolor delivered an encouraging level of sales and earnings despite the unfavorable economic backdrop, the Board of Directors has decided to propose to the general meeting of shareholders of Datacolor AG that an unchanged dividend of CHF 11 be distributed for fiscal 2014/15.

Europe remains Datacolor‘s key market

In fiscal 2014/15, the European region, in particular the industrial sector, accounted for a substantial 37.3% (35.2%) of sales. Europe remains Datacolor's key market. Despite the subdued investment climate in the Indian and Chinese textile industries, the Asia-Pacific region maintained previous year’s level with 33.6% (33.3%) of sales. The North and South America region contributed 29.1% (31.5%) to sales.

Further expansion of direct sales organization

During the year under review, Datacolor continued to expand its direct sales and service organization in Italy as part of its corporate strategy. The entire sales and service business is now handled direct in order to guarantee customers first-class solutions and support from a single source. During fiscal 2014/15, Datacolor also took over sales, service and distribution operations for the German, Austrian and Swiss retail markets for display and printer calibration from long-standing partner Globell. Customers now receive direct support from Datacolor experts in close collaboration with regional distributors as well as from wholesalers and retailers.

Datacolor Executive Committee expanded

The Datacolor Executive Committee was expanded with the position of Vice President Business Development. In his new role, Brian Levey will focus on developing Datacolor's strategic growth potential. At the same time, CEO Albert Busch took charge of the marketing organization. Thus, the cooperation between the areas of marketing, R&D and sales will be better aligned, as well as bringing Datacolor closer to the market. In addition, newly appointed Vice President Human Resources Nimi Meschke has been tasked with spearheading Datacolor's global personnel strategy.

Innovative product solutions for industry and end consumers

In fiscal 2014/15, Datacolor expanded its existing product portfolio with numerous innovative, easy-to-operate products for industrial customers as well as for the retail market. The company introduced with “Check 3.0” a new portable spectrophotometer for customers in the paint, coatings, plastics and textiles industries. Datacolor also launched “Match Textile 2.0”, a significant upgrade to its successful color matching software for dyehouses. Datacolor rolled out the modular, user-friendly color management software “Paint 2.0” for paint retailers. The entire workflow from color search and grade matching to physical dispensing can be managed simply, accurately and fast. In addition, Datacolor has launched the fifth generation of its successful Spyder family. The convenient-to-operate, high-accuracy color management solution “Spyder 5” calibrates monitors to industry color standards, making image processing much simpler and faster. With “Spyder5 Studio” the most extensive color calibration suite designed for professional photographers has been introduced, who demand the highest level of control and accuracy.

Outlook

Thanks to its efficient market-led organizational structure, a further expanded marketing organization, an attractive product portfolio and a customer-focussed sales and service organization, Datacolor is well positioned to reach its growth targets. A strong financial basis allows the company to continue making major investments in the future and develop new, innovative technologies for high-accuracy color measurement. Datacolor has set itself the goal of continually extending its market leadership in the textile and apparel industries, increasing its market penetration in the paint and coatings industry and, through organic growth and acquisitions, selectively moving into new markets.

The complete Annual Report 2015 is available on: http://www.datacolor.com/en/content/reports 

Lucerne, 13. November 2015