CMS and DAM vendor Day Software (traded on the Swiss bourse as DAYN) has released financial results for FY 2008, and although a company press release tries to spin the results positively, the numbers tell a different story. While overall revenues are up modestly, costs have skyrocketed, and the company's net income remains in the red-ink column.

On the plus side, second-half revenue came in at CHF 15.0M, an increase of 10% from total revenues of CHF 13.7M in the second half of 2007. The increase came almost totally from support and services. License revenue for the period held flat at CHF 5.5M.

For the full year, Day took in CHF 27.8M in 2008 versus 25.0M in 2007.

Operating expenses went up very sharply, however. R&D spending increased 38%, General Administration soared 30% , and Sales and Marketing costs shot up 42% in 2008 versus a year earlier.

Bottom line? For the full fiscal year, Day Software experienced a net loss in 2008 of CHF 12.0M on 27.8M in income, versus a net profit of CHF 7.0M on 25.0M of income in 2007.

If there's good news in all of this (and there is), it's that the company's losses aren't the result of dwindling business. Top-line revenues have not shrunk. And that makes Day the envy of many a company (inside or outside the CMS fray) these days. But increased investments in Sales and R&D are not doing anything to help the bottom line -- in this reporting period, at least.

For customers, this should not be cause for great near-term concern, except perhaps that -- having seen many changes over the year -- Day will likely see more going forward.