Press Releases

2009 FINANCIAL RESULTS 

IFRS (in euro millions) H2 2009 H1 2009 2009 2008 variation 2009/08
Revenues 12.0 7.2 19.3 17.8 8%
Cost of Goods Sold -2.1 -0.5 -2.6 -2.3
Gross Margin 10.0 6.7 16.7 715.5 +7%
Gross Margin rate 83% 93% 87% 87%
Staff costs -3.4 -3.4 -6.8 -6.7
Other operating costs -3.7 -3.3 -7.0 -6.3
Depreciation and Amortization -1.3 -1.3 -2.5 -2.4
Operating result before non recurring items 1.6 -1.3 0.3 0.0
Non recurring operational costs 0.0 -0.3 -0.3 -0.4
Operating result 1.6 -1.6 0.0 -0.3
Financial income 0.0 0.0 0.0 0.0
Income Tax 0.1 0.0 0.1 0.5
Net Consolidated Income 1.7 -1.6 0.1 0.2

Paris, April 19th, 2010 – Dalet announced consolidated revenues for the year ended December 31, 2009 of €19.3 million, an 8% increase compared to €17.8 million in 2008. Gross margin (revenues minus costs of goods sold) for the year was €16.7 million vs. €15.5 million in 2008 (+7%), the gross margin rate remained almost stable at 87%.

Sales of Dalet products in television broadcast and digital video keeps rising, representing in 2009 74% of total revenues, with sales in the News, Media Asset Management, HD production for sports, VOD and digital video archives markets. Sales of digital audio solutions for Radio accounted for the remaining 26% of revenues.

In terms of geographical breakdown of revenues, Europe represented 55%, Americas 37%, Asia-Pacific 3%, Africa-Middle East 5%. US sales continued their strong growth (+52% in US Dollars between 2008 and 2009).

In terms of operating expenses, the impact of the capitalization of software development direct employee costs (IAS 38 standard) should be noted: whereas the capitalization of development costs less accumulated amortization had generated an operating profit of €0.2 million in 2008, they generated a loss of €0.3 million in 2009, as the capitalized amount was less than the accumulated amortization.

Operating result before non recurring items was positive at €0.3 million, compared to €0.0 million for 2008.

In addition, the €3.3 million increase in gross margin between the first semester and the second semester of 2009, due to the increased level of activity during the fourth quarter of 2009, has been achieved without significant increase in the level of operating expenses. This resulted in an improvement of the operating result before non recurring items of €2.9 million between the first and second semesters of 2009 (€1.6 million vs -€1.3 million).

Non recurring operational costs included depreciation of long term assets of €0.2 million (non cash item) related to the remaining value of the goodwill of the German subsidiary after the asset sale of January 2008.
This resulted in a breakeven operating result, compared to a loss of €0.3 million in 2008.

Net consolidated income for 2009 was €0.1 million, compared to €0.2 million in 2008.

Net cash increased from €4.1 million on 12/31/2008 to €4.7 million on 12/31/2009, with no debt.

About Dalet Digital Media Systems

Dalet is a worldwide leader in software that empowers broadcasters and content professionals to produce and manage audio and video content in a digital, multi-platform world. Dalet media asset management (MAM) solutions streamline production costs and increase revenue opportunities by simplifying the distribution of rich-media assets across both interactive and traditional platforms.
Dalet tools are used around the world by thousands of content producers including major television and radio public broadcasters (ABS-CBN, BBC, CBC, DR, BNC, NPR, RTBF, RFI, Russia Today, RSR & TSR, RT Malaysia, VOA, WDR), commercial networks (Antena 3, Canal+, Fox, eTV, Orange, Prime Television, The Press Association, Time Warner, Warner Bros., XM-Sirius) and government organizations (Queensland JAG, Canadian House of Commons, The European Commission).
Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0000076176, Bloomberg DLT:FP, Reuters: DALE.PA.

Number of outstanding shares: 17 647 364

For more information on Dalet, visit www.dalet.com

Contact Dalet: Tel: +33 1 41 27 67 00

Visit the Investors section on our website : www.dalet.com

DALET – SIMPLIFIED CONSOLIDATED BALANCE SHEET (IFRS- in euro millions)

31-dec.-09 31-dec.-08
12 months 12 months
Goodwill 0.0 0.2
Intangible assets 3.6 3.8
Tangible assets 0.4 0.4
Restricted cash (over 12 months) 0.3 0.3
Other non current assets 0.7 0.6
TOTAL NON CURRENT ASSETS 4.9 5.2
Trade receivables 6.2 6.1
Other current assets 1.0 1.3
Cash and cash equivalents 4.7 4.2
TOTAL CURRENT ASSETS 11.9 11.6
TOTAL ASSETS 16.8 16.8
SHAREHOLDERS’ EQUITY 8.9 8.8
Long-term financial debt 0.0 0.0
Other non current liabilities 0.7 0.6
TOTAL NON CURRENT LIABILITIES 0.7 0.6
Short term financial debt 0.3 0.1
Trade payables 2.0 1.5
Liability for current tax 1.8 1.6
Other current liabilities 3.1 4.2
TOTAL CURRENT LIABILITIES 7.2 7.4
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY 16.8 16.8