Better Together! Dalet Acquires Ooyala Flex Media Platform business.
|IFRS (in euro millions)||2007||2006||% variation|
|Cost of Goods Sold||-2.7||-1.6|
|Gross Margin Rate||86%||91%||-5%|
|Operating result before non recurring items||0.8||0.6||+35%|
|Other operating expenses||-2.3||-0.1|
Dalet consolidated revenues for 2007 were €19.1 million, a 9% increase with respect to €17.5 million in 2006. Gross margin increased by 3% from €15.9 million to €16.4 million.
In January 2008 Dalet sold the assets of its German subsidiary related to the OpenMedia product. OpenMedia sales had decreased by 33% from €4.3 million in 2006 to €2.9 million in 2007. Sales of digital solutions for radio decreased by 16%, from €7.7 million to €6.5 million, reflecting the general trend of this mature market. In contrast, sales of new Dalet products for television broadcasters steadily increased, with revenues growing by 76% from €5.5 million in 2006 to €9.7 million in 2007.
At the same time, operating expenses were stable (+2%). The result operating profit before non recurring items was €0.8 million, a 35% increase with respect to €0.6 million for 2006. In addition, the €2.3 million increase in gross margin between the first semester and the second semester of 2007, due to the seasonality of Dalet activity, has been achieved without any increase in the level of operating expenses. This resulted in an improvement of the operating result before non recurring items of €1.8 million between the first and second semester 2007 (€1.3 million vs -€0.5 million).
On January 26, 2008 Dalet’s German subsidiary Dalet ANN GmbH sold the assets related to its OpenMedia legacy product, effective 1/1/2008. According to IFRS 5 standards, this asset sale generates in 2008 a loss in the value of the goodwill to be taken into account in the 2007 financials. The goodwill depreciation, netted from the gain in asset sale, results in a depreciation of long term assets of €2.2 million (non cash item), which appears in the P&L under “Other operational costs”.
Due to the impact of this goodwill amortization, the operating result was a loss of €1.6 million, compared to a profit of €0.4 million for 2006, and the net result was -€2.3 million, compared to -€0.1 million in 2006.
Dalet shareholders have shown their confidence in the company and in its continued recovery, by converting in advance all of the convertible bonds issued in March 2004, which were to reach maturity in 2008 and 2009, thus reducing the company’s debt from ne4.2 million to €0.1 million. Taking as well into account the exercise during the first semester of 2007 of the remaining outstanding warrants the cashflows generated from financing activties reached €1.1 million.
It should be noted that the cashflows generated from operations were €2.4 million, covering the -€2.3 million needed for investment activities.
Net cash on 12/31/2007 was €3.7 million.
David Lasry, CEO of Dalet, commenting on the figures released: « Our 2007 results confirm that we are on the right track. Following the sale of OpenMedia, which has also helped streamline operating costs, Dalet is now fully focused on its core product offerings. The growth in sales of our new solutions for TV digital production and the new contracts signed recently with key references such as BBC World Service, RTBF and Warner Bros are proof of the wide acceptance of our product offering on the market, and should allow for our continued growth in 2008 in the digital production for News and Sport, Media Asset Management, Video on demand and HD markets».
Dalet empowers broadcasters and content professionals to produce and manage audio and video content in a digital, multi-platform world. Dalet media asset management (MAM) software streamlines production costs and increases revenue opportunities by simplifying the distribution of rich-media assets across both interactive and traditional platforms. Dalet software is used around the world by thousands of content producers including major public broadcasters (BBC, CBC, DR, DW, NPR, RFI, RSR, Russia Today, VOA, WDR), commercial networks (ART, eTV, Grupo Prisa, Prime Television, The Press Association, Warner Bros., XM Satellite…) 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: 17 526 364
For more information on Dalet, visit https://www.dalet.com
Contact Dalet: +33 1 41 27 67 00
|12 months||12 months|
|Restricted cash (over 12 months)||0.1||0.7|
|Other non current assets||0.2||0.2|
|Deferred tax assets||0||0|
|TOTAL NON CURRENT ASSETS||4.8||7.7|
|Other current assets||0.9||0.8|
|Cash and cash equivalents||3.7||2.6|
|TOTAL CURRENT ASSETS||11.5||10.7|
|Assets classified as held for sale||2.5|
|Long-term financial debt||0.1||4.2|
|Long term provisions||0.2||0.2|
|deferred tax liabilities||0.7||0.4|
|TOTAL NON CURRENT LIABILITIES||1.0||4.8|
|Short term provisions||0.1||0.3|
|Short term financial debt||0.6||1.4|
|Liability for current tax||1.6||1.8|
|Other current liabilities||3.7||3.3|
|TOTAL CURRENT LIABILITIES||8.0||8.4|
|Liabilities classified as held for sale||1.3|
|TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY||18.9||18.4|
|12 months||12 months|
|CASH AT BEGINNING OF PERIOD||2.6||1.5|
|Cash flow before cost of net financial debt and tax (A)||2.2||1.3|
|- Income tax paid (B)||-0.2||0.0|
|+/- Change in cash flow requirement associated with the activity (C )||0.4||-1.0|
|= CASH FLOW GENERATED BY OPERATING ACTIVITIES (D) = (A + B + C)||2.4||0.3|
|CASH FLOW ASSOCIATED WITH INVESTMENT OPERATIONS (E)||-2.4||-2.3|
|CASH FLOW ASSOCIATED WITH FINANCING OPERATIONS (F)||1.1||3.0|
|+/- Impact of changes in exchange rates (G)||0.0||0.1|
|= CHANGE IN NET CASH POSITION ( D + E + F + G )||1.2||1.0|
|CASH AT END OF PERIOD||3.7||2.6|