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Delphax Technologies Reports Profitable First Half, Announces $1.3 Million Order for Imaggia Check-Printing System

Posted on: Thursday, 28 May 2009, 07:00 CDT

Company to Showcase Roll-Fed CR2200 at Demo Days, a Month-Long Series of Performance Demonstrations at its Bloomington, Minn., Headquarters

MINNEAPOLIS, May 28 /PRNewswire-FirstCall/ -- Delphax Technologies Inc. (Pink Sheets: DLPX), a global provider of high-speed digital printing systems, today reported a profitable first half of fiscal 2009, and announced a $1.3 million order for an Imaggia check-printing line from a Bangladesh security printing company in a transaction that is expected to contribute to profitable second-half results.

Delphax also reported that shareholders re-elected Earl Rogers to the board of directors at the company's recent annual meeting and approved the reappointment of Grant Thornton LLP as independent auditors. Rogers, who is chief operating officer, Builder Group, Homebuyers Warranty Corporation, has been a director since 2001. His was the only director term expiring in 2009.

For the fiscal first half ended March 31, 2009, Delphax had net income of $4.0 million on sales of $24.9 million, compared with a net loss of $2.2 million on sales of $19.8 million for the first half of fiscal 2008.

The results for the first half of fiscal 2009 reflected (i) a higher-than-usual concentration of service-related sales from the previously announced $5.4 million purchase order for consumables and equipment parts from Harland Clarke Corp. and (ii) the sale of on-site consumables and equipment parts purchased by Harland Clarke as part of its transition to self-maintenance. For the first half of fiscal 2009, Delphax shipped $4.2 million under the Harland Clarke parts purchase order, and Harland Clarke purchased $2.9 million of consumables and spare parts as part of its self-maintenance transition. Harland Clarke is the largest user of the Imaggia digital print system.

In addition, the company recorded a 27 percent decrease in first-half operating expenses, due to a stronger U.S. dollar versus the currencies in countries where the company has its subsidiaries and the cost reduction measures taken by the company in fiscal 2008 and earlier this fiscal year. Among the cost-saving measures was Delphax's voluntary deregistration of its common stock in the first half of fiscal 2009, which suspended the company's obligation to make SEC filings. Delphax expects to save more than $500,000 for the full year as a result of eliminating SEC reporting expense. While the company will continue to issue annual financial information and interim communications dealing with matters of significance, it will no longer issue detailed periodic financial reports.

"Over the past year we have made--and continue to make--the adjustments necessary to return Delphax to profitability," said Dieter Schilling, president and chief executive officer. "We've adapted to a changing marketplace and worldwide economic challenges by focusing on our established core business of serving the security printing industry, thereby putting us on a better footing from both a sales and a cost standpoint. At this point, we are on target to achieve our financial goal of returning to full-year profitability in fiscal 2009."

The Bangladesh order for Imaggia equipment and related consumables is from the Security Printing Corporation (Bangladesh) Ltd., which produces a wide range of security materials, including Bangladesh currency and postage stamps. It is the first Asian placement for the high-speed Imaggia, which offers the advantages of a high-speed digital print system that meets the highest worldwide standards for non-impact MICR (magnetic ink character recognition) encoding and is estimated to hold more than a one-third share of the North American check-printing market. Installation is expected to be completed this summer, with revenues recognized before the end of the fiscal year ending Sept. 30, 2009.

As the world's fastest digital MICR-capable sheet-fed printer, the Imaggia is one of two Delphax digital print systems offering industry-leading production speeds. The other is the newer roll-fed CR2200 digital press, which will be showcased in a month-long series of Demo Days performance demonstrations at the company's Bloomington, Minn., headquarters from June 1-30.

At Demo Days, Delphax will team with finishing partners Ehret, KTI, MBO and IBIS to provide in-depth demonstrations of the CR2200's capabilities, including complete in-line saddle stitched book production on lightweight papers running at the full rated speed of 500 feet per minute.

The Delphax CR2200 is the fastest monochrome, toner-based digital print system in the world, operating at 500 feet per minute, producing 2,182 pages per minute at 600 x 600 dpi print quality. The productivity advantages of the CR2200, including its tight web design and the ability to print at high speed on light weight papers, offer the money-saving option of replacing less productive pieces of equipment with a single unit that reduces labor, paper and mailing costs. The CR2200 can either replace or complement traditional web offset presses that have much higher short-run operational costs.

About Delphax Technologies Inc.

Delphax Technologies Inc. is a global leader in the design, manufacture and delivery of advanced digital print production systems based on its patented electron-beam imaging (EBI) technology. Delphax digital presses deliver industry-leading throughput for both roll-fed and cut-sheet printing environments. These products are extremely versatile and handle a wide range of substrates from ultra lightweight paper to heavy stock. Delphax provides digital printing solutions to publishers, direct mailers and other printers that require systems capable of supporting a wide range of commercial printing applications. The company also licenses and manufactures EBI technology for OEM partners that create differentiated product solutions for additional markets. There are currently installations using Delphax EBI technology in more than 50 countries worldwide. The company is headquartered in Minneapolis, with subsidiary offices in Canada, the United Kingdom and France. The company's common stock is currently quoted over the counter under the symbol DLPX.PK. Additional information is available on the company's website at www.delphax.com.

SOURCE Delphax Technologies Inc.

Source: PR Newswire

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