DELPHAX TECHNOLOGIES INC. 
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DELPHAX REPORTS CONTINUED PROFITABILITY FOR FISCAL 2011
Entry into color printing arena fueled by core business performanceMINNEAPOLIS, March 8, 2012-Delphax Technologies Inc. (Pink Sheets:DLPX.PK), a global provider of high-speed digital printing equipment, today reported continued profitability for fiscal 2011, its third consecutive year of positive net income.
For the fiscal year ended Sept. 30, 2011, net income was
$545,000 on net sales of $32.2 million, with R&D expense of
$4.2 million. That compares with net income of $2.3 million
on net sales of $32.3 million, with R&D expense of $2.1
million in fiscal 2010.
Fiscal 2011 equipment sales were $1.2 million, up from
$816,000 in fiscal 2010. Revenues from maintenance, spares
and supplies were $30.9 million in fiscal 2011, compared with
$31.5 million in fiscal
2010.
"The results underscore a central premise of our planning for
Delphax-that our established core business gives us a solid
foundation for growth and continuing innovation," said Dieter
Schilling, president and chief executive officer. "The sales
performance of our core business in fiscal 2011, led by a 52
percent increase in equipment sales, enabled us to remain
profitable while we doubled research and development expense
in preparation for our entry into the color printing
arena."
The company, a long-time leader in the development of
high-speed toner-based monochrome printing equipment,
recently announced plans for a May 2012 introduction of a
commercial class high-performance digital color print system
based on a unique inkjet technology. The system -
elan™ powered by Memjet - represents an entirely
new category of high-quality print technology and has been
designed as a direct response to growing customer demand for
more efficient, versatile and affordable color printing
equipment.
During November 2011, Delphax negotiated a new senior credit
facility with a commercial bank that provides $6.0 million of
revolving credit, subject to a borrowing base of accounts
receivable and inventory. In connection with this new
financing, the company paid off the final $3.0 million in
secured subordinated debt owed to Harland Clarke, its largest
customer and primary lender for the last three years.
"We are also encouraged by the number of equipment sales
we've had so far in fiscal 2012, and believe that our
established core business will continue to sustain
profitability, net of R&D expense, as we take the final steps
in preparing for market," Schilling said. "The addition of
high-speed color capability is an exciting and essential
strategic advance for Delphax, and we believe we are well
prepared for it."
Delphax will introduce elan at the drupa 2012
international trade fair May 3-16 in Dusseldorf, Germany.
Shareholders who are able to attend the company's annual
meeting on April 19 will see a preview of the presentation of
elan as it will be offered at
drupa. Customer beta testing is scheduled to
take place in the first half of fiscal 2013, with production
shipments scheduled to commence shortly thereafter.
-more-
C R E A T I N G N E W P O S S I B I L I T I E S T H R O U G H D I G I T A L I M A G I N G T E C H N O L O G Y6100 West 110th Street • Bloomington , MN 55438 • Phone: 952.939.9000 • Fax: 952.939.1151 • Website: www.delphax.com
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About Delphax Technologies Inc.
Delphax Technologies Inc. is a global leader in the design,
manufacture and delivery of advanced digital print production
systems. For more than 30 years, Delphax has pioneered
high-speed digital imaging
innovations that improve throughput and enhance efficiencies
for publishers, direct marketers and other commercial print
customers where cost and quality are important. The Delphax
portfolio includes specialized full color inkjet or
monochrome inkjet and toner technologies that are ideal for a
wide range of
applications over a broad spectrum of substrates from
ultra-lightweight paper to heavy stock in both roll-fed and
cut-sheet print environments. Delphax is headquartered in
Minneapolis, with subsidiaries 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.
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CONTACT:
Gregory S. Furness Chief Financial Officer (952) 939-9000 gfurness@delphax.com
C R E A T I N G N E W P O S S I B I L I T I E S T H R O U G H D I G I T A L I M A G I N G T E C H N O L O G Y6100 West 110th Street • Bloomington, MN 55438 • Phone: 952.939.9000 • Fax: 952.939.1151 • Website: www.delphax.com
