DICOM Group plc, a global leader of Intelligent Capture & Exchange solutions based in Basingstoke, today announced financial results for the nine months to 31 March 2007.Financial Highlights (prepared under IFRS)

• Revenue up 2% to GBP 119.0m (2006: GBP 116.3m), up 6% in local currency terms
  • License and Service revenue up 7% in local currency terms
• Gross profit margins increased to 54.8% (54.0%)
• Adjusted* operating profits up 4% to GBP 10.5m (2006: GBP 10.1m), increase of 9% in local currency terms
• Adjusted operating profit margins of 8.8% (8.7%)
• Pre-tax profits up 38% to GBP 8.9m (2006: GBP 6.4m)
• Adjusted pre-tax profits up 9% to GBP 11.3m (2006: GBP 10.4m)
• Adjusted earnings per share reported at 8.9p, up 7% (2006: 8.3p
• Strong operating cash flow of GBP 11.7m, net funds of GBP 34.5m (GBP 29.7m at 30 June 2006)

* Further details with regards to the calculation of adjusted earnings and adjusted profits are set out in note 2 to the financial results.

Operating Highlights

• Launch of simplified and integrated product brand architecture
• Strengthening of Kofax Intelligent Capture & Exchange with introduction of Kofax Document Exchange Server
• Launch of Kofax Ascent® Fax, a new software product to automate receipt of fax documents and move them directly into business processes
• Kofax INDICIUS and Kofax Document Scan Server win awards at AIIM Conference & Expo 2007
• New customer wins during the quarter include Eagle Global Logistics, Arizona Healthcare Cost Containment, State of Utah, CIMB Bank, Generali France, Severn Trent Water, Het Kadaster, Örlikon IT Solutions GmbH, The Prescription Pricing Division of the National Health Service Business Services Authority and Bundesamt für Straßen (ASTRA)

Commenting, Rob Klatell, Chief Executive Officer of DICOM Group said:

The third quarter financial performance was below our expectations mainly due to softness in the sub-prime mortgage lending market in the Americas and to slower then expected sales in certain countries in Asia Pacific. However, a strong pipeline for the fourth quarter and the momentum we enjoy in EMEA give us confidence that we will achieve our goal of increased profitability for the year as a whole.

More information can be found on the Dicom Website.