Delphax Reports Continued Profitability for Fiscal 2010 and Discusses Plans for Color Printing at Annual Shareholder Meeting

MINNEAPOLIS, May 18, 2011 /PRNewswire/ -- Delphax Technologies Inc. (Pink Sheets: DLPX), a global provider of high-speed digital printing equipment, reported that it was profitable in all four quarters of fiscal 2010 following the restructuring and repositioning carried out in fiscal 2009.  

The performance, which gave the company consecutive years of positive net income for the first time in more than a decade, was among the subjects of a management presentation at its annual meeting of shareholders recently held in Bloomington, Minn.

Net income for the fiscal year ended Sept. 30, 2010, was $2.3 million on net sales of $32.3 million.  That compares with record net income of $3.4 million on net sales of $44.1 million in fiscal 2009, a year that included a higher-than-usual concentration of supply purchases by a major customer.

"With the major portion of our restructuring costs behind us, 2010 operating expenses decreased nearly a third to $7.9 million from $11.7 million in fiscal 2009," said Dieter Schilling, president and chief executive officer. "The ratio of operating expenses to net sales in fiscal 2010 was the most favorable ever recorded by the company—and was accomplished without a reduction in research and development spending.

"Our return to profitability has kept the door open for the continuing innovation and product development needed to keep Delphax in the forefront of digital printing technology in the years ahead."

Revenues from maintenance, spares and supplies were $31.5 million in fiscal 2010, compared with $42.2 million in 2009.  

At $816,000, fiscal 2010 equipment sales were down from $2.0 million in 2009, in part a reflection of possibly the worst business environment for the printing industry on record.  However, the company said it is well on the way to an increase in equipment sales during fiscal 2011 on the strength of first-half sales bookings alone.

As a result of debt restructuring in fiscal 2008 and the early repayments made during fiscal 2010, the company's current debt level of $4.0 million is the smallest since the acquisition of Delphax Systems 10 years ago.  The company is scheduled to make an additional early repayment of $1.0 million on or before June 30, 2011, which will reduce the debt level to $3.0 million.

Management also discussed during the annual meeting the company's plan to enter the color printing arena through a partnership with Memjet, a San Diego-based developer of high-speed color printing technologies.  The company reported its relationship with Memjet in an announcement on April 28, 2011.

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.  The company's EBI technology is used in installations 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.

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