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Apr 23, 2018
France
2017 Yearly Results
Current Operating Margin 4.7% - Increase of Net Cash

2017 Yearly Results

Current Operating Margin 4.7% - Increase of Net Cash

In € millions 2016 2017

Change

Revenues

48,2

51,1

+6%

Cost of goods and third-party services resold

7,0

6,4

-8%

Commercial gross profit

41,2

44,6

+8%

Commercial gross margin

85%

87%

+2pts

Other cost of revenues

14,6

15,9

+9%

Gross profit

26,6

28,7

+8%

Gross Margin

55%

56%

+1pt

Research and development

11,6

12,0 +3%

Selling and marketing

9,0

9,4

+4%

General and administrative

4,6

5,0

+9%

Current operating income

1,4 2,4 +73%

Operating income

1,3

1,9

+42%

Net income, Group share

0,66

0,73

+10%

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 2017.

 

Record revenues, continued improvement of the Gross Margin

Dalet posted in 2017 its ninth consecutive year of growth, with record revenues at €51.1 million, up 6% when compared to 2016. The improved sales mix and a better margin on services contributed to a Gross Profit of €28.7 million, up by 8%.

 

Current operating margin reaches upper range of guidance

As a result of well-controlled expenses, in particular moderate increase of R&D spending, current operating income climbed to €2.4 million, up 73% as compared to 2016. In percentage, current operating margin for 2017 was 4.7%, in the upper range of the margin objectives defined by the group in its 2016/2017 business plan.

An exceptional provision for €0.6 million was recorded related to the final settlement of a commercial dispute on an old project from 2014. The resulting operating income reached €1.9 million, up 42%. After financial expenses and income tax, including a deferred tax expense (non cash) of €0.3 million, net income was up by 10% at €0.7 million.

 

Net cash position: €2.2 million

Net cash on 31 December 2017 stands at €2.2 million, up by €0.9 million. Shareholders’ equity stood at €15.2 million on 31 December 2017.

 

Outlook: sustained revenue growth and current operating margin target of 5% to 6% in 2018

Dalet confirms the target of mid to high single digit organic revenue growth in 2018 announced together with the publication of its 2017 revenues.

Dalet’s revenue growth will be aided by the enriched feature set of its product portfolio in particular on the new Artificial Intelligence technologies. These offerings are just starting to be released and they were very well received at the recent April NAB show in Las Vegas.

In parallel, the group will continue to realize margin improvements based on the combination of higher software revenues in the sales mix, further gains in service margins, and better distribution of fixed costs across the larger volume of revenue. Dalet’s objective for 2018 current operating margin is between 5% and 6%.

 

Next publication

Q1-2018 revenues on 14 May 2018 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), commercial networks and operators (Canal+, Fox, Euronews, MBC Dubai, MediaCorp, Mediaset, 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 75
  • Press-Media: Vivien Ferran +33 1 53 67 36 34
     

 

APPENDIX: DETAILED FINANCIAL INFORMATION 2017 

INCOME STATEMENT BY FUNCTIN

(in euro thousands)

2016

2017

 

 

Revenues

48 226

51 052

Cost of Revenues

-21 627

-22 307

Gross Profit

26 598

28 744

Research and Development expenses

-11 634

-11 968

Selling and Marketing expenses

-8 984

-9 361

General and Administrative expenses

-4 599

-5 032

Current Operating Income

1 381

2 383

Other operating income and expenses

-76

-524

Operating Income

1 305

1 859

Financial income and expenses

-425

-377

Pre-tax income

880

1 482

Income Tax

-220

-754

Net consolidated income

660

728

Net consolidated income, attributable to Group

660

727

 

INCOME STATEMENT BY NATURE OF EXPENSE

(in euro thousands)

2016

2017

 

 

 

Revenues

48 226

51 052

Cost of Goods and third-party services resold

-7 001

-6 432

Commercial Gross Profit

41 225

44 620

Commercial Gross Margin

85,5%

87,4%

 

 

 

Purchases and other external expenses

-12 540

-13 209

Employee expenses

-23 524

-24 901

Taxes and duties

-179

-199

Other operating income and expenses

-56

0

EBITDA

4 926

6 311

 

 

 

Depreciation, Amortization and Provisions net of reversals

-3 545

-3 928

 

 

 

Curent Operating Income

1 381

2 383

 

BALANCE SHEET

(in euro thousands)

Dec 31 2016

Dec 31 2017

   

 

Goodwill

5 604

5 476

Intangible assets

5 375

5 034

Property, plant and equipment

1 333

1 286

Long-term financial assets

360

349

Long term restricted cash

180

417

Other non-current assets

1 718

2 343

Deferred tax assets

424

58

NON-CURRENT ASSETS

14 992

14 963

Inventories

428

353

Trade receivables

17 814

17 823

Sundry debtors

1 701

1 288

Cash and cash equivalents

6 532

6 528

Current tax assets

299

412

CURRENT ASSETS

26 774

26 404

TOTAL ASSETS

41 766

41 366

   

 

Capital

7 187

7 189

Premiums

9 682

9 682

Consolidated reserves

-4 655

-3 904

Consolidated income

660

727

Translation reserves

2 276

1 495

Shareholder's Equity (attributable to the Group)

15 150

15 189

Non-controlling interests

9

9

SHAREHOLDERS' EQUITY

15 159

15 198

Long term financial debt

2 930

2 550

Long term provisions

677

733

Deferred tax liabilities

578

548

Other non current liabilities

754

811

NON CURRENT LIABILITIES

4 938

4 641

Short-term provisions

96

609

Short-term financial debt

2 332

1 789

Current tax liabilities

38

101

Suppliers

3 962

3 077

Tax and social security liabilities

4 316

4 583

Other creditors

10 926

11 369

CURRENT LIABILITIES

21 669

21 527

TOTAL LIABILITIES

41 766

41 366

 

STATEMENT OF NET CASH FLOWS

31 dec 2016

 

31 dec 2017

(in € thousand)

12 months

12 months

Consolidated net income (including non-controlling interests)

660

728

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

3 841

4 397

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

89

72

-/+ Gains and losses on disposals

-5

6

Cash flow after cost of net financial debt and tax

4 585

5 202

+ Cost of net financial debt

128

7

+/- Tax expense (including deferred taxes)

220

754

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

4 933

5 963

- Tax paid (B)

-563

- 480

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

769

- 449

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

5 139

5 035

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

-3 334

- 3602

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

35

83

+/- Change in loans and advances made

33

10

= NET CASH FLOW FROM INVESTMENT ACTIVITIES (E)

-3 265

- 3 509

 

 

 

-/+ Repurchase and resale of treasury shares

-23

-1

+ Cash from new borrowings

415

1 020

- Loan repayments (including finance leases)

-1 150

 -1 411

- Net financial interest paid (including finance leases)

-112

6

+/- Other cash flows from financing activities

903

- 727

= NET CASH FLOW FROM financing activities (F)

34

-1 114

 

 

 

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

87

-357

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

1 996

55

 

 

 

Cash at end of period

 

 

Cash and cash equivalents - Bank overdrafts

6 313

6 367

Cash at opening

 

 

Cash and cash equivalents - Bank overdrafts

4 317

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Continued Growth In First Quarter 2018
(Unaudited) In € millions T1 2017 T1 2018 Change Licences 2,7 2,9 +5% Maintenance - Support 4,0 4,2 +4% Total Software Revenues 6,7 7,0 +4% Services 2,2 2,4 +12% Hardware 2,0 2,1 +2% Total revenues for the quarter 10,9 11,5 +8% Commercial Gross Margin for the quarter 9,2 9,8 +7% Commercial Gross Margin rate 85% 86% DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, posted consolidated revenues (unaudited) of €11.5 million for the first quarter of 2018, up 5% from Q1-2017 revenues (+12% at constant exchange rate ). Growth fueled by new and supplemental business in Americas despite adverse currency impact Revenues in the Americas zone stood at €4.7 million, up 17% (at current exchange rates), despite the adverse impact of the euro to dollar exchange variations. Revenues for Europe have resumed a positive growth trend, with revenues up 5% at €5.2 million. Asia-Pacific and Africa-Middle East contributed respectively for €1.2 million (-5%) and €0.5 million (-37%) to consolidated revenues. In terms of sales mix, software revenues (comprising licenses and support revenues) was up by 4% at €7.0 million. Within software revenues, license sales were up 5% at €2.9 million, as Dalet’s Galaxy end to end software solution continued to score strong wins. The installed base thus grows from quarter to quarter, feeding recurring support revenues which were up 4% for the quarter at €4.2 million. Overall revenues were bolstered by a 12% increase in Service revenues (integration, configuration and training professional services) at €2.4 million. Hardware resale, which is a non-strategic business for Dalet, increased slightly at €2.1 million (+2%). The commercial gross margin (defined as sales minus cost of goods and third-party services resold) was up by 7% at €9.8 million or 86% of revenues over the first quarter of 2018, as against 85% for the same period in 2017 due to the more favorable sales mix. Outlook: confirmation of targets for continued growth and improved operating margins DALET’s activity is overall in line with its business plan after this first quarter, thus allowing Dalet to confirm its targets for 2018 of high single-digit revenue growth and of a current operating margin of 5 to 6%. Next publication Q2-2018 revenues on 23 July 2018 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, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, 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
Ninth Consecutive Year of Growth
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today consolidated revenues (unaudited) for financial year 2017. Steady growth of revenues and commercial gross profit Fourth quarter revenues were up 4% at €15.3 million. Growth was mainly driven by the increase in services revenues (+28% over the quarter), which balanced the decrease in hardware resale (-18%), a non strategic, low margin activity. Software revenues (licenses + maintenance) were up slightly by 1%. In terms of full year revenues, Dalet posted in 2017 its ninth consecutive year of growth, with consolidated revenues up 6% at €51.1 million. Software revenues were up 5%, bolstered by an increase of more than 7% in recurring maintenance revenues. License revenues were up 2%. Service revenues were up 21%, due to the large number of projects conducted during the year involving deployment and integration. Hardware resale was down by 8%. Due to the more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by 8% at €44.6 million. Broken down by geographic region, the Americas were the main contributor to the growth in 2017, with revenues up by 13% at €20.7 million. Revenues for Europe slightly decreased by -2% at €20.7 million, mainly due to the decrease in non-strategic hardware resale. Excluding this hardware resale effect, sales in Europe were up by 2% in 2017. Dalet continued its expansion in the Asia Pacific region, with revenues up 8% at €7.3 million, as well as in Middle-East Africa, where revenues were up 10% at €2.4 million. Confirmation of current operating income target for 2017 The initiatives taken by Dalet to better control its costs in deployment of large projects, combined with the revenues growth and sales mix evolution, should deliver for 2017 a current operating margin slightly above 4%. Outlook: Expected sustained growth in 2018 Moving into 2018, Dalet can rely on a strong order intake in 2017, with several large contract wins in the Americas. The order book on January 1st 2018 stood at €40 million, up 12% from last year. Dalet expects in 2018 to continue progress towards its strategic goals, and targets mid to high single digit organic revenue growth. Dalet will announce its 2018 target for current operating margin together with the publication of the full 2017 financial results. Next publication 2017 yearly results on 23 April 2018 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, FMM, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, Mediaset, Orange, Time Warner Cable, Warner Bros., Sirius XM Radio) 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
9 Months Business Activity 2017
Dalet, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its third quarter and for the nine-month period ended September 30, 2017. Third quarter: +10% in license sales (Unaudited) In € millionsQ3 2016Q3 2017Change Licences3.13.4+10% Maintenance - Support3.94.2+8% Total Software Revenues7.07.6+9% Services2.73.0+12% Hardware2.92.5-16% Total revenues12.613.1+4% Commercial Gross Profit10.211.2+9% * Commercial Gross Profit is defined as sales minus cost of goods and third-party services resold Dalet revenues for the third quarter were up 4% at €13.1 million, in spite of a 16% decrease in Hardware resale, which is a low margin, non-strategic business. Overall software revenues (comprising licenses and support revenues) was up by 9%, with licenses up by 10%, due to a significant number of system installations over the period. Service revenues were up 12% over the same period last year. Due to this more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +9% at €11.2 million, resulting in a Commercial Gross Margin of 85%. Nine months revenues up 7% (Unaudited) In € millions9 MONTHS 20169 MONTHS 2017Change Licences9.09.2+3% Maintenance - Support11.512.6+10% Total Software Revenues20.521.8+7% Services6.98.1+17% Hardware6.25.9-4% Total revenues 33.535.8+7% Commercial Gross Profit28.431.1+9% The strong third-quarter results helped boost the revenue results for the first 9 months of 2017 by 7% with all strategic lines of the sales mix showing growth. The strong sequential increase in license revenues in the third quarter confirms the value that Dalet’s software solutions offer to leading broadcasters and content producers who are purchasing our solutions over other competitive products. The installed base keeps growing from quarter to quarter, feeding recurring support revenues which were up 10% for the 9 months period at €12.6 million. Service revenues were up 17% over the 9 months period at €8.1 million, due to the large number of deployments currently underway. The commercial gross margin over the 9 months period was up 9%, in line with the company’s business plan. Broken down by geographic region, the Americas shows the strongest growth, with +37% growth for the quarter as compared to the same period last year, and +17% at €14.2 million over the first 9 months of 2017. Dalet reaps the benefits of its commercial investments and gains market share, in part due to the US market’s recognition of our technically advanced solutions to further their own innovation. Sales in Europe were down by 4% at €14.5 million over the nine months period, mainly due to the planned decrease in non-strategic hardware resale. Excluding this hardware resale effect, sales in Europe were slightly up by 0.6%. Both Asia Pacific and Africa-Middle East performed well, with growth rates of +14% and +13% respectively since the beginning of the year. Outlook: confirmation of targets Backed by a strong order intake in the third quarter, Dalet confirms its targets for 2017 of both continued revenue growth and of a current operating margin of 4 to 5%. The contracts signed in the third quarter should also allow Dalet to show a strong order book for 2018. Next publication Full year 2017 revenues on 19 February 2018 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), 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: Guillaume Le Floch +331 53 67 36 70 Press-Media: Vivien Ferran +331 53 67 36 34
Financial Results First Semester 2017
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 financial results for its first half-year ended June 30, 2017. Total revenues for the semester were up by 9% at €22.7 million as compared to the first half of 2016. Gross profit, which includes the cost of services, increased at the same rate as revenues, despite a larger share of services in the total sales mix (services represented 22% of revenues, versus 20% for the first semester of 2016). This result reflects the initial implementation of new processes designed to better control the cost of projects deployment. Research and development expenses were stable at €6 million (26% of revenues). Selling and Marketing expenses were up by 8%, an increase due to international expansion in new markets and increased presence at tradeshows. General and Administrative expenses were up by €0.3 million, related to the development of new offices in Japan and Brazil and expansion in Singapore. The resulting current operating loss decreased significantly by 23% to -€1.4 million, as compared to the first half of 2016. It is noted that Dalet’s business experiences significant seasonality, with higher revenues in the second semester compared to the first semester, while expenses are almost fixed. After €0.3 million in financial expenses, of which 10% is net interest expenses and 90% is related to exchange rates fluctuations, and €0.2 million in tax, net income for the semester amounted to a loss of €1.9 million as compared to a loss of €2.1 million for the first semester of 2016. Improved cashflows – Stronger net cash position Cash flows linked to operations amounted to €2.3 million, up by 35% as compared to the first semester last year, due to the decrease in seasonal loss and to an improved management of work capital. These cash flows linked to operations covered all investments and generated cash flows before financing activities of €0.6 million. On 30 June 2017, net cash stood at €1.6 million, shareholder’s equity at €13 million. Perspectives Based on these results and on the initial activity of the second semester, DALET expects continued growth in 2017, and progressive improvement of its operating margins, with an objective of a current operating margin of 4 to 5% for the full year 2017. DALET just participated at the IBC broadcast tradeshow in Amsterdam (September 15 to 19), where it released its new “Dalet Social Media Panel”, an innovative module that provides newsrooms with the capability to create and distribute stories to social media outlets, and provides journalists, on their Dalet desktop production tools, with real time feedback on the stories from their audience. This innovative solution was awarded by a panel of judges from the industry the "Best of Show Award', one of the most prestigious awards at the show. Next publication Q3 revenues on 6 November 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), 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: Guillaume Le Floch +331 53 67 36 70 Press-Media: Vivien Ferran +331 53 67 36 34 APPENDIX: DETAILED FINANCIAL INFORMATION H1 2017 INCOME STATEMENT BY FUNCTION30 june 201630 june 2017 (in € thousands)6 months6 months Revenues 20 89622 964 Cost of revenues-9 836- 10 657 Gross Profit11 05912 037 Research and development-6 084- 5 992 Selling and marketing-4 531- 4 890 General and administrative-2 312- 2 600 Current operating income-1 869- 1 445 Other income and expenses from operations- 76 Operating income-1 869-1 369 Net financial income (expense)-146- 325 Pre-tax income-2 015- 1 694 Income tax-90-246 Net consolidated income-2 105- 1 940 Net income, Group share-2 105-1 940 INCOME STATEMENT BY NATURE OF EXPENSE30 june 201630 june 2017 (in € thousands)6 months6 months Revenues 20 89622 694 Cost of goods and third-party services resold-2 659-2 737 Commercial gross profit18 23619 957 Other external expenses-5 939- 6 649 Employee expenses-12 144-12 747 Taxes and duties-90-99 Other income and expenses from operations-29-21 EBITDA36442 Amortization expense and provisions net of reversals-1 905 - 1 886 Current operating income-1 869-1 445 Net financial income (expense)-146- 325 Pre-tax income-2 015-1 694 Net consolidated income-90- 246 Net consolidated income-2 105- 1940 Net income, Group share-2 105- 1940 BALANCE SHEET31 dec 201630 june 2017 (in euro thousand) Goodwill5 6045 508 Intangible assets5 3755 154 Property, plant and equipment1 3331 403 Long-term financial assets360370 Long-term restricted cash180181 Other non-current assets1 7181 926 Deferred tax assets424395 NON-CURRENT ASSETS14 99214 936 Inventories428290 Trade receivables17 81416 323 Sundry debtors1 7011 270 Cash and cash equivalents6 5325 950 Current tax assets299204 CURRENT ASSETS26 77424 037 TOTAL ASSETS41 76638 973 Capital7 1877 187 Premiums9 6829 682 Consolidated reserves-4 655- 3948 Consolidated income, Group share660- 1940 Translation reserves2 2761 979 Shareholder’s equity (attributable to the Group)15 15012 960 Non-controlling interests99 SHAREHOLDER’S EQUITY15 15912 969 Long-term financial debt2 9302 550 Long-term provisions677670 Deferred tax liabilities578529 Other non-current liabilities754787 NON-CURRENT LIABILITIES4 9384 536 Short-term provisions9618 Short-term financial debt2 3321 815 Current tax liabilities3872 Suppliers3 9622 776 Tax and social security liabilities4 3164 907 Other creditors10 92611 879 CURRENT LIABILITIES21 66921 468 TOTAL LIABILITIES41 76638 973 STATEMENT OF NET CASH FLOWS 30 june 201630 june 2017 (in € thousand)6 months6 months Consolidated net income (including non-controlling interests)- 2 105- 1940 +/- Depreciation, amortisation and provisions (except on current assets) 1 9291 764 +/- Impairment losses – Long term assets +/- Income and expense linked to stock options and similar6442 -/+ Other income and expense -/+ Gains and losses on disposals12 Cash flow after cost of net financial debt and tax -112-132 + Cost of net financial debt8232 +/- Tax expense (including deferred taxes)90246 Cash flow before cost of net financial debt and tax (A)60146 - Tax paid (B)-189- 247 +/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) 1 8612 447 = NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C)1 7322 345 - Cash outflow for acquisitions of property, plant and equipment and intangible assets-1 733- 1 764 + Cash from disposals of property, plant and equipment and intangible assets176 +/- Impact of changes of scope +/- Change in loans and advances made51-72 = NET CASH FLOW FROM INVESTMENT ACTIVITIES (E)-1 682- 1 761 -/+ Repurchase and resale of treasury shares2-9 + Cash from new borrowings300423 - Loan repayments (including finance leases)-480-649 - Net financial interest paid (including finance leases)-72-24 +/- Other cash flows from financing activities-140-712 = NET CASH FLOW FROM FINANCING ACTIVITIES (F)-390-971 +/- Impact of changes in exchanges rates (G)-60- 225 = CHANGE IN NET CASH POSITION (D + E + F + G)-399-612 Cash at end of period Cash and cash equivalents – Bank overdrafts3 9175 701 Cash at opening Cash and cash equivalents – Bank overdrafts4 3176 313
Continued Growth in First Quarter 2017
(Unaudited) In € millions Q1 2016 Q1 2017 Change Licences 2.5 2.7 +8% Maintenance - Support 3.7 4.0 +7% Total Software Revenues 6.3 6.7 +7% Services 1.8 2.2 +20% Hardware 2.0 2.0 - Total revenues for the quarter 10.1 10.9 +8% Commercial Gross Margin for the quarter 8.4 9.2 +10% Commercial Gross Margin rate 84% 85% DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, posted consolidated revenues (unaudited) of €10.9 million for the first quarter of 2017, up 8% from Q1-2016 revenues. Growth was fueled by the two key revenue streams, software revenues (+7%) and Services (+20%). Within software revenues, license sales were up 8% at €2.7 million, as the new version of Galaxy of Dalet’s end to end software solution continued to score strong wins. The installed base thus grows from quarter to quarter, feeding recurring support revenues which were up 7% for the quarter at €4.0 million. Service revenues were up 20% at €2.2 million, due to the large number of projects involving deployment and integration currently underway. Hardware resale, which is a non strategic business for Dalet, remained stable at €2.0 million. The commercial gross margin (defined as sales minus cost of goods and third-party services resold) stood at €9.2 million or 85% of revenues over the first quarter of 2017 as against 84% for the same period in 2016 due to the more favorable sales mix. Broken down by geographic region, revenues for Europe have resumed a positive growth trend, with revenues up 11% at €4.9 million. The Group continued its development in the Americas, its second largest contributor, with a 4% growth (€4.0 million). Asia-Pacific is the only area where revenues decreased over the quarter (-2% at €1.2 million) due to an unfavorable base effect related to last year’s first quarter where revenues were up +106%. Revenues in Africa and the Middle East more than doubled at €0.8 million revenues over the quarter, compared to €0.3 million for the same period last year. Outlook: confirmation of targets for continued growth and improved operating margins DALET’s activity is overall in line with its business plan after this first quarter, thus allowing Dalet to confirm its targets for 2017 of both continued revenue growth and of a current operating margin of 4 to 5%. Dalet continues enriching its product portfolio and feature set, and just released its new Orchestration module, that aims at automating configurable processes for the media production supply chain, combining system services and customized user tasks. Delivered with a full Report Center, the solution brings Business Intelligence to the organization, allowing users at various levels to monitor and analyze key indicators about their operations. This new offering allows Dalet to promote its solutions for enterprise-wide management to more senior executives, particularly at large media companies where more strategic and fully integrated business solutions are increasingly important. It was very well received at the recent NAB show in Las Vegas from April 22 to 27st. Next publication Q2-2017 revenues on 26 July 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 www.dalet.com Contacts Actus Finance & Communication : Investors: Guillaume Le Floch / Théo Martin +33 1 53 67 36 36 Press-Media: Vivien Ferran +33 1 53 67 36 34
9 Months Business Activity 2016
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its third quarter and for the nine-month period ended September 30, 2016. Third quarter: commercial gross profit +9% (Unaudited) In € millionsQ3 2015Q3 2016Change Licenses3.13.1= Maintenance - Support4.03.9-2% Total Software Revenues7.17.0-2% Services2.02.7+36% Hardware3.22.9-9% Total revenues for the quarter12.312.6+2% Commercial Gross Profit 9.410.2+9% Third quarter revenues were up 2% at €12.6 million. Revenue growth resulted from an increase in service revenues, due to a significant number of system installations over the period. Overall software revenues (comprising licenses and support revenues) were stable compared to the same period last year. Hardware resale, which is a low margin business, continued its decrease, at -9%. Due to this more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +9% at €10.2 million. Nine months revenues (Unaudited) In € millions9 MONTHS 20159 MONTHS 2016Change Licenses8.59.0+6% Maintenance - Support10.811.5+7% Total Software Revenues19.320.5+7% Services5.96.9+17% Hardware8.96.2-30% Total revenues 34.233.5-2% Commercial Gross Profit26.728.4+6% DALET’s activity is overall in line with its business plan after these first nine months. The increase in software revenues (+7%) and services (+17%) make up for the expected decrease in hardware resale, a non strategic business for Dalet, which included in 2015 a one-off exceptionally large sale. Dalet’s software solutions continue to score strong wins with leading broadcasters and content producers, as illustrated by the recent order from Euronews, which should contribute to revenues for the fourth quarter of 2016 and first half of 2017. Broken down by geographic region, and for the nine months period, Europe remains the largest zone with revenues at €15.1 million (-9% due to the unfavorable base effect linked to the low-margin hardware sales in 2015). The Asia Pacific region performed well, with revenues up 25% over the period at €4.7 million. Revenues for the Americas were stable at €12.1 million. Revenues for Africa and the Middle East were stable at €1.6 million. Commercial Gross Profit for the 9 months period increased by 6% at €28.4 million. The resulting Commercial Gross Margin was 85% up from 78% for the same period in 2015. Perspectives Backed by an order book on September 30 2016 with more than €13 million to be invoiced in Q4 2016, Dalet expects to meet its main goal for 2016 of continued growth of its commercial gross profit. This should also lead to a progressive improvement of its operating margins, a first step towards its objective of a current operating margin of 4 to 5% by 2017. Next publication Full year 2016 revenues on 22 February 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., Sirius XM Radio) 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: Guillaume Le Floch: 01 53 67 36 70 Morgane Le Mellay: 01 53 67 36 75 Press-Media: Vivien Ferran: 01 53 67 36 34