Datum International Ltd
LSE : DATP

September 10, 2008 11:40 ET

Interim Results to 30/06/2008

                                                  
                                                                                             10/09/2008
                                                                              GB00B0CM0C50/GBP/PLUS-exn
                                                         
                                                         
                                            DATUM INTERNATIONAL LIMITED
                                               (PLUS-quoted (DATP))


                                INTERIM RESULTS FOR THE PERIOD ENDED 30th JUNE 2008

The  Board  of Datum International Limited ("Datum" or "the Company") is disappointed to report on a very difficult
half  year's trading.  In our finals released to the market in May we indicated that first half revenues  would  be
down on the same period last year based on first quarter revenues. However, at the time we expected a better second
quarter  performance. Unfortunately, both existing clients and prospective customers continued to delay  purchasing
decisions during the second quarter and therefore our results reflect that situation.

Sales  year-on-year  are  down  by  45% (£239,924 from £436,306 last year), overwhelmingly  driven  by  a  dramatic
reduction  in  new  licence  sales. This is a reflection of the slowdown in economic activity,  in  which  business
decisions  have  continued  to be postponed. Potential licence sales, rather than being lost  to  competitors,  are
simply taking longer to close.

Datum's  operating  costs during the period grew by 13%, most of the extra expense arising from  headcount  growth.
These  costs were planned for at the end of 2007, at a time when year-on-year sales growth was 69%.  The Board  has
subsequently  acted  quickly to cut costs and reduce cash outflows during the half year.  Headcount  is  down,  and
marketing  and  software development expenditure is being carefully managed.  The second half will  show  a  marked
reduction in costs.

Despite  the  difficult  trading conditions, the company has an excellent pipeline of qualified  prospects.  Fourth
quarter sales are expected to be further supported as a result of sales arising from the Sage 200 integration  (new
KW200  product)  with  KnowledgeWorker  announced separately today. The  board  is  particularly  excited  by  this
opportunity to tap into a substantial existing base of Sage customers.

In  line  with industry trends we have also introduced KnowledgeWorker on a Software as a Service (SaaS) basis  and
this  is  striking a chord with prospects who are looking to reduce capital expenditure costs during  this  current
difficult  economic  climate. Our first customer is currently trialling the software  and  the  feedback  has  been
excellent.  This method of delivering software to the market, while having an impact on initial license sales  will
provide the company with extended visibility of recurring revenues.

Finally,  in a market that has hitherto been dominated by large North American software giants, we are  pleased  to
announce that KnowledgeWorker has recently been critically acclaimed by a Butler Group report on Document & Records
Management. Furthermore, a report released only this week by Datamonitor has placed KnowledgeWorker as one  of  the
top  products  available in the market and has favourably compared our product to our competitors.  The  report  is
entitled "Decision Matrix: Selecting a Documents and Records Management Vendor (Competitor Focus)" and is available
for purchase from Datamonitor's website. Part of the report reads as follows: -

"Datum's  DRM solution leads the market in the categorization, search and retrieval category, outscoring  both  IBM
and Open Text. It also performs above average in the BPM and workflow category, scoring a notch above EMC. Overall,
Datum performs well on almost all of the technology criteria..."

Our  ability to compete on the technology front against competitors who have and are spending hundreds of  millions
of  dollars  on R&D is truly remarkable and is a testament to the quality of our people and our vision.  The  board
would like to thank all of our employees for their continuing hard work and commitment and to our shareholders  who
have continued to support us.

We  believe that world-wide recognition by the leading IT analysts will greatly help us to recruit new partners and
to  acquire  new customers. We aim to establish KnowledgeWorker as one of the top 10 products in the  multi-billion
pound ECM market.

The  Company  takes  this opportunity to remind its shareholders that the Company's AGM will be held  tomorrow  (11
September 2008) at noon at the offices of St Helen's Capital Plc.


Financial Results

UNAUDITED RESULTS FOR THE SIX MONTH PERIOD TO                                   30/06/2008              30/06/2007
                                                                                       GBP                     GBP
                                                                                                              
TURNOVER                                                                           239,924                 436,305
                                                                                                              
Administrative expenditure                                                         489,719                 431,123
                                                                               ------------            ------------
                                                                                                              
OPERATING PROFIT / (LOSS)                                                         (249,795)                  5,182
                                                                                                              
Interest payable (net)                                                              (9,404)                 (1,767)
                                                                               ------------            ------------
                                                                                                              
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                       (259,199)                  3,415
                                                                                                              
Tax (charge) / rebate on ordinary activities                                             0                       0

                                                                              ------------              -----------   
                                                                                                             
PROFIT / (LOSS) AFTER TAXATION                                                    (259,199)                  3,415
                                                                              -------------            ------------
                                                                                                              
The Directors of the Issuer accept responsibility for this announcement.

ENQUIRIES:

DATUM INTERNATIONAL LIMITED                   TEL: 01438 347110
Les Paul, Chief Executive

ST HELEN'S CAPITAL PLC                        TEL: 020 7628 5582
Barry Hocken

www.datumplc.com

Contact Information

  • Datum International Ltd