Menu extends

Apr 27, 2017
France
2016 Yearly Results - Current Operating Income Up 385%
Positive Net Income - Strong Cash Generation - Confirmation of 2017 Objectives

2016 Yearly Results - Current Operating Income Up

Dalet, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, has published its yearly audited results for financial year 2016.

In € millions20152016Change

Revenues47,548,2+2%

Cost of goods and third-party services resold8,37,0 

Commercial gross profit39,141,2+5%

Commercial gross margin82%85% 

Other cost of revenues14,114,6 

Gross profit25,026,6+6%

Gross Margin53%55% 

Research and development11,011,6+6%

Selling and marketing9,09,0-1%

General and administrative4,64,6-1%

Current operating income0,31,4+385%

Operating income(0,1)1,3-

Net income, Group share(0,8)0,7+1,5M€

Going forward, Dalet publishes its Income statement by function, so as to be aligned with the presentation generally used by software companies. The income statement by nature of expense is presented as well in the appendix to this press release.  The consolidated financial statements have been audited. The auditors' report will be published once the due diligence procedures required for the publication of the yearly financial report are complete.


Dalet, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, has published its yearly audited results for financial year 2016. 

Gross Margin up from 53% to 55%

Dalet posted in 2016 its eighth consecutive year of growth with consolidated revenues up 2% at €48.2 million. The sales mix improved with a larger contribution to the activity from Software revenues and a decrease in hardware resale. This combined with an improved margin on services contributed to a Gross Profit of €26.6 million, up by 6%, with a gross margin increasing from 53% to 55% of revenues.

Fivefold increase in Current Operating Profit

Research and development expenses were up 6%, as the Group makes progress on its technology roadmap and product enhancements. The capitalization of €2.9 million in R&D on the company's balance sheet had no significant impact on income as it was offset by the amortization of R&D expenses in a similar amount. Selling & marketing expenses and general & administrative expenses were stable. As a result, current operating income climbed to €1.4 million from €0.3 million, an almost fivefold increase with respect to 2015. Current operating margin for 2016 was 2.9%, on track with the margin objectives defined by the group. With no significant exceptional expenses, operating income reached €1.3 million. After €0.4 million in financial expenses of which 0.1 million is interest expenses, and €0.2 million in tax, net income amounted to €0.7 million compared to a loss of €0.8 million in 2015.

Stronger cash position, Positive cashflows

Cashflows from operations amounted to €5.1 million, up 51% from the previous year. Cash on 31 December 2016 increased to €6.5 million, net cash was €1.3 million compared to a net debt of €0.6 million on 31 December 2015. Dalet shareholders’ equity stood at €15.2 million on 31 December 2016.

Perspectives 

Based on an order book on January 1st 2017 of €36 million, and on dynamic activity since the beginning of the year, DALET targets in 2017 a 9th consecutive year of growth. The group will continue setting as its priority the growth of its Software activity and associated professional services, while focusing on improving its service margins. Dalet confirms its objective of a current operating margin objective of 4% to 5% in 2017.

Next publication

Q1-2017 revenues on 11 May 2017 after the close of trading

About Dalet Digital Media Systems

Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards.

Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA, WDR), commercial networks and operators (Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., SiriusXM) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).

Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit https://www.dalet.com.

 

Contacts

Actus Finance & Communication

  • Investors: Théo Martin +33 1 53 67 36 36
  • Press-Media: Vivien Ferran +33 1 53 67 36 34

 

APPENDIX: DETAILED FINANCIAL INFORMATION 2016 

INCOME STATEMENT BY FUNCTION
(in euro thousands)20152016

   

Revenues47 46348 226

Cost of Revenues-22 485-21 627

Gross Profit24 97826 598

Research and Development expenses-10 999-11 634

Selling and Marketing expenses-9 044-8 984

General and Administrative expenses-4 650-4 599

Current Operating Income2851 381

Loss on value-long term assets-411 

Other operating income and expenses -76

Operating Income-1251 305

Financial income and expenses-336-425

Pre-tax income-461880

Income Tax-339-220

Net consolidated income-800660

Net consolidated income, attributable to Group-800660

 

INCOME STATEMENT BY NATURE OF EXPENSE
(in euro thousands)20152016

   

Revenues47 46348 226

Purchases and other external expenses-20 917-19 540

Employee expenses-22 211-23 524

Taxes and duties-200-179

Depreciation and Amortization-3 620-3 700

Provisions net of reversals-62155

Other income and expenses from operations-168-56

Curent Operating Income2851 381

Loss on value-long term assets-411 

Other operating income and expenses -76

Operating Income-1251 305

Income from cash and cash equivalents1930

Cost of gross financial debt-173-158

Cost of net financial debt-153-128

Other financial income and expenses-182-297

Pre-tax income-461880

Income tax-339-220

Net consolidated income-800660

Net consolidated income, attributable to Group-800660

 

BALANCE SHEET
(in euro thousands)Dec 31 2015Dec 31 2016

   

Goodwill6 2135 604

Intangible assets5 9595 375

Property, plant and equipment1 3671 333

Long-term financial assets358360

Long term restricted cash325180

Other non-current assets1 0081 718

Deferred tax assets415424

NON-CURRENT ASSETS15 64414 992

Inventories247428

Trade receivables14 48317 814

Sundry debtors1 4271 701

Cash and cash equivalents4 3356 532

Current tax assets166299

CURRENT ASSETS20 65826 774

TOTAL ASSETS36 30241 766

   

Capital7 1877 187

Premiums9 6149 682

Consolidated reserves-3 334-4 655

Consolidated income-800660

Translation reserves2 5282 276

Shareholder's Equity (attributable to the Group)15 19415 150

Non-controlling interests89

SHAREHOLDERS' EQUITY15 20215 159

Long term financial debt3 7242 930

Long term provisions554677

Deferred tax liabilities880578

Other non current liabilities744754

NON CURRENT LIABILITIES5 9014 938

Short-term provisions 96

Short-term financial debt1 2922 332

Current tax liabilities8138

Suppliers3 3493 962

Tax and social security liabilities4 0634 316

Other creditors6 41310 926

CURRENT LIABILITIES15 19821 669

TOTAL LIABILITIES36 30241 766

 

STATEMENT OF NET CASH FLOWS31 dec 2015
 31 dec 2016

(in € thousand)12 months12 months

Consolidated net income (including non-controlling interests)-800660

+/- Depreciation, amortisation and provisions (except on current assets)3 4163 841

+/- Impairment losses - Long term assets4110

+/ - Income and expense linked to stock options and similar9389

-/+ Gains and losses on disposals-1-5

Cash flow after cost of net financial debt and tax3 1184 585

+ Cost of net financial debt153128

+/- Tax expense (including deferred taxes)339220

Cash flow before cost of net financial debt and tax (A)3 6114 933

- Tax paid (B)-182-563

+/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C)-20769

= NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C)3 4085 139

   

- Cash outflow for acquisitions of property, plant and equipment and intangible assets-3 565-3 334

+ Cash from disposals of property, plant and equipment and intangible assets17835

+/- Impact of changes of scope-2570

+/- Change in loans and advances made-333

= NET CASH FLOW FROM INVESTMENT ACTIVITIES (E)-3 647-3 265

   

-/+ Repurchase and resale of treasury shares-56-23

+ Cash from new borrowings883415

- Loan repayments (including finance leases)-1 052-1 150

- Net financial interest paid (including finance leases)-147-112

+/- Other cash flows from financing activities156903

= NET CASH FLOW FROM financing activities (F)-21634

   

+/- Impact of changes in exchange rates (G)24287

= CHANGE IN NET CASH POSITION (D + E + F + G)-2121 996

   

Cash at end of period  

Cash and cash equivalents - Bank overdrafts4 3176 313

   

Cash at opening  

Cash and cash equivalents - Bank overdrafts4 5294 317