DALET

2016 Yearly Results - Current Operating Income Up 385%

Dalet has published its yearly audited results for financial year 2016

In € millions 2015 2016 Change

Revenues 47,548,2 +2%

Cost of goods and third-party services resold 8,37,0

Commercial gross profit 39,141,2 +5%

Commercial gross margin 82% 85%

Other cost of revenues 14,114,6

Gross profit 25,026,6 +6%

Gross Margin 53% 55%

Research and development 11,011,6 +6%

Selling and marketing 9,09,0 -1%

General and administrative 4,64,6 1%

Current operating income 0,31,4 +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

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, 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 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) 2015 2016

 

Revenues 47 463 48 226

Cost of Revenues -22 485 -21 627

Gross Profit 24 978 26 598

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 Income 2851 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) 2015 2016

 

Revenues 47 463 48 226

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

Current Operating Income 2851 381

Loss on value-long term assets -411

Other operating income and expenses -76

Operating Income -1251 305

Income from cash and cash equivalents 1930

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 2015 Dec 31 2016

 

Goodwill 6 2135 604

Intangible assets 5 9595 375

Property, plant and equipment 1 3671 333

Long-term financial assets 358360

Long term restricted cash 325180

Other non-current assets 1 0081 718

Deferred tax assets 415424

NON-CURRENT ASSETS 15 64414 992

Inventories 247428

Trade receivables 14 48317 814

Sundry debtors 1 4271 701

Cash and cash equivalents 4 3356 532

Current tax assets 166299

CURRENT ASSETS 20 65826 774

TOTAL ASSETS 36 30241 766

 

Capital 7 1877 187

Premiums 9 6149 682

Consolidated reserves -3 334 -4 655

Consolidated income -800660

Translation reserves 2 5282 276

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

Non-controlling interests 89

SHAREHOLDERS’ EQUITY 15 20215 159

Long term financial debt 3 7242 930

Long term provisions 554677

Deferred tax liabilities 880578

Other non current liabilities 744754

NON CURRENT LIABILITIES 5 9014 938

Short-term provisions 96

Short-term financial debt 1 2922 332

Current tax liabilities 8138

Suppliers 3 3493 962

Tax and social security liabilities 4 0634 316

Other creditors 6 41310 926

CURRENT LIABILITIES 15 19821 669

TOTAL LIABILITIES 36 30241 766

 

STATEMENT OF NET CASH FLOWS

31 dec 2015 31 dec 2016

(in € thousand)12 months 12 months

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

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

+/- Impairment losses – Long term assets 4110

+/ – Income and expense linked to stock options and similar 9389

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

Cash flow after cost of net financial debt and tax 3 1184 585

+ Cost of net financial debt 153128

+/- 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 assets 17835

+/- 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 borrowings 883415

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

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

+/- Other cash flows from financing activities 156903

= 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 overdrafts 4 3176 313

 

Cash at opening

Cash and cash equivalents – Bank overdrafts 4 5294 317

 

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