Datamark Systems Group Inc.
TSX : DMK

Datamark Systems Group Inc.

November 10, 2006 15:23 ET

Datamark Systems Group Inc. Announces Results for the Three Months and Nine Months Ended September 30, 2006

MONTREAL, QUEBEC--(CCNMatthews - Nov. 10, 2006) - Datamark Systems Group Inc. (TSX:DMK)- Consolidated sales for the third quarter ended September 30, 2006 were $26,266,000, a decrease of 3.0% from $27,075,000 for the third quarter ended September 30, 2005. Commercial print sales were stable at last years strong levels while sales of traditional business forms continued to decline as a result of challenging market conditions and pricing pressure. Sales of label products increased during the quarter. Consolidated sales for the nine months ended September 30, 2006 were $79,422,000, a decrease of 4.6% from $83,208,000 for the nine months ended September 30, 2005.

Net earnings for the third quarter were $501,000 ($0.04 basic earnings per share) compared to $515,000 ($0.04 basic earnings per share) for the same period in 2005. Net earnings for the nine months ended September 30, 2006 were $409,000 ($0.03 basic earnings per share) compared to $2,034,000 ($0.17 basic earnings per share) for the same period last year. The nine months net earnings ended September 30, 2006 were negatively impacted by the stock based compensation of $820,000 and the retirement allowance of $700,000.

The market for many of our products and services, particularly our traditional printed products, remains very competitive and demand for certain types of business forms and labels is increasingly being met through electronic versions. In this environment, we are focused on the expansion of our service offering and increasing our sales and marketing resources.

Datamark Systems Group Inc. is dedicated to providing efficient and innovative document Management solutions. The company's operating divisions and subsidiaries, Datamark Systems, Proforms and Les Impressions Intra-Media Inc. provide a full range of products and services including forms, labels, airline products and short and long run commercial printing. Document management services encompass warehousing and distribution as well as customized inventory and cost reporting. Datamark Systems Group Inc.'s plants and distribution centers are in Quebec, Ontario, Manitoba and Alberta. Datamark Systems Group Inc. is listed on the Toronto stock Exchange under the symbol DMK.

Contact Information

  • DATAMARK SYSTEMS GROUP INC.
    JEFFREY ZUNENSHINE
    PRESIDENT
    450-663-7878, EXT.410