DataCert Achieves 31% Revenue Growth and Wins the Largest Global Legal Operations Management Deal in 2008

Even in tough economic climate, DataCert's value proposition resonates with global corporations

HOUSTON, Jan. 28, 2009 - DataCert, Inc., the leading global provider of legal operations management solutions, today announced strong 2008 financial performance, with revenue growth for the tenth consecutive year. The acquisition of new global clients and a focus on customer service drove 31% revenue growth, while operating improvements and cost controls strengthened profitability.

"It's clear that the market recognizes the value our solutions provide in terms of reducing operating expenses and risk - both of which are of particular interest in today's cost-conscious environment," said Jim Tallman, president and chief executive officer, DataCert. "Further, in 2008 we succeeded in expanding our global footprint, with our product globalization strategy contributing to over half of our revenue growth, and we acquired our largest global customer to-date. DataCert's continued market success and financial strength ensure our customers have a long-term partner for their continuing global legal operations needs."

The volume of new business closed in 2008 almost doubled DataCert's backlog of new sales orders to fulfill in 2009, which included the addition of new corporate customers as well as add-on business from existing customers. The company also focused in 2008 on implementing operational improvements that resulted in the reduction of expenses by 25% over the course of the year. This freed resources to invest heavily in important customer satisfaction programs, aimed at improving the quality and timeliness of products and services delivery.

"As a result of these efforts, we increased our operating margin by 33% and 4Q earnings reached a new level of profitability," stated Alan Harding, chief financial officer, DataCert. "Our improved margins and strong cash flow position us to weather the current economic storm as well as allow us to fund the development of new products, markets, and services for our customers in 2009."

2008 Highlights

  • Increased revenue by 31%, achieving ten consecutive years of revenue growth
  • Reduced expenses by 25% over the course of year
  • Increased operating margin by 33%
  • Grew our client list to 71 Fortune 500 and 53 Global 500 customers
  • Added over 1000 new law firm connections
  • Processed over $9 billion in client invoices
  • Processed invoices in 40 currencies from over 130 countries
  • Won largest global legal operations deal with a Fortune Global 200 company
  • Ranking on the 2008 Deloitte Technology Fast 500 list of fastest-growing technology companies for the sixth consecutive year
  • Ranking on Software Magazine's list of the 500 largest technology companies worldwide for the sixth consecutive year
  • Honored by the Houston Business Journal as a member of its Fast 100, which is a ranking of the fastest-growing companies in Houston based on a two-year revenue growth

Expanded Customer Value

"In addition to these financial achievements, DataCert continued to deliver value to our corporate customers and legal vendor community with several new product and feature releases," stated Mark Poag, general counsel and senior vice president, marketing, DataCert. "These releases further our customers' goals of expanding their global capabilities, managing their departments more strategically, and enhancing communication with their outside firms."

2008 Product and Feature Releases

  • Released Insight, a robust business intelligence solution that goes beyond traditional historical reporting and empowers corporate legal departments to realize the full potential of their legal and IP spend and matter management solutions
  • Released CLD 10, which unites best-of-breed matter management and legal spend management solutions into a powerful, fully-integrated application that helps corporate legal departments take control of their legal operations
  • Released the latest version of AIMS, which provides global corporations with the tools they need to control their legal spend while adhering to international regulatory standards and handling the complexities of multiple currencies
  • Expanded law firm offerings with:
    • ShareDoc Reports, which enhances in-house counsel and outside counsel relationships by allowing law firms to access real-time status reports on electronic invoices, budgets, and timekeepers
    • QuickInvoice Detail, which enables law firms and legal vendors who submit a low volume of invoices or that do not have a time and billing system to create, submit, and track electronic invoices with header and line-item details
  • Released Budget Collaboration feature, which streamlines the creation and management of matter budgets between corporate legal departments and their outside counsel

For More Information

To learn more, please contact DataCert at 713-572-3282 or e-mail nasales@datacert.com (North American inquiries) or emeasales@datacert.com (international inquiries).

About DataCert, Inc.

DataCert is the premier global provider of legal operations management solutions, including matter management and legal and intellectual property spend management software and services. Corporate legal departments trust DataCert solutions to manage, analyze, and optimize legal operations. DataCert has law firm, vendor, and agent connections in more than 130 countries and its customers include 71 FortuneŽ 500 corporations, 53 Global FortuneŽ 500 corporations, and 100% of the AmLaw 200. Visit www.datacert.com for more information.