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Sep 22, 2016
France
Financial Results First Semester 2016
Improvement in Core Revenue Streams and Gross Profit; Decrease of Seasonal Losses

Financial Results First Semester 2016

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, 2016 as approved by its Board of Directors on 22 September 2016. Total revenues for the semester were €20.9 million, due to a 43% decrease in Hardware resale (€3.3 million revenues), a low margin non-strategic business for Dalet. Overall software revenues (comprising licenses and support revenues, €13.4 million, +10%) and associated services (€4.2 million, +7%) are both improving. Due to this favorable sales mix, and to good control of other cost of revenues, gross profit was up by 5% (€0.6 million increase). Growth in software and service revenues resulted from new projects from leading broadcasters and content producers, in particular in North America and Asia-Pacific, and from the continued increase in recurring support, due to the year on year growth of the installed base.

In € millions H1 2015 H1 2016 Variation
Revenues 21.9 20.9 -5%
Cost of goods and third-party services resold 4.5 2.7  
Commercial gross profit 17.4 18.2 +5%
Other cost of revenues 6.8 7.1  
Gross profit 10.5 11.1 +5%
Research and development 5.9 6.1 +3%
Selling and marketing 4.9 4.5 -8%
General and administrative 2.4 2.3 -4%
Current operating income (2.7) (1.9) +31%
Operating income (2.7) (1.9)  
Net income, Group share (3.3) (2.1) +36%

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.

 

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, 2016 as approved by its Board of Directors on 22 September 2016.

Total revenues for the semester were €20.9 million, due to a 43% decrease in Hardware resale (€3.3 million revenues), a low margin non-strategic business for Dalet. Overall software revenues (comprising licenses and support revenues, €13.4 million, +10%) and associated services (€4.2 million, +7%) are both improving. Due to this favorable sales mix, and to good control of other cost of revenues, gross profit was up by 5% (€0.6 million increase).

Growth in software and service revenues resulted from new projects from leading broadcasters and content producers, in particular in North America and Asia-Pacific, and from the continued increase in recurring support, due to the year on year growth of the installed base.

Current operating income improves by €0.8 million

Selling and marketing expenses diminished by €0.4 million mainly due to the base effect of non-recurring marketing and selling expenses in H1 2015. Research and development expenses were up 6%, as the Group makes progress on its technology roadmap and product enhancements. General and administrative expenses were down by €0.1 million.

The resulting current operating loss decreased by €0.8 million at -€1.9 million.

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 €0.1 million in financial expenses and €0.1 million in tax, net income for the semester amounted to a loss of €2.1 million as compared to a loss of €3.3 million for the first semester of 2015.

Low net debt

Dalet shareholder’s equity stood at €12.2 million on 30 June 2016. Cash flows linked to operations amounted to €1.7 million, as compared to €1.1 million over the first semester last year.

These cash flows linked to operations covered all investments for the period (€1.6 million). Cash assets amounted to €4 million on 30 June 2016, gross financial debt was €4.7 million. 

Perspectives 

Dalet financial results are in line with its business plan after these first six months. Backed by new contracts under negotiation, in particular in Europe and in the US, Dalet expects continued growth in the second half of 2016. As previously announced, Dalet expects continued growth in 2016 of its gross profit, and progressive improvement of its operating margins, with an objective of a current operating margin of 4 to 5% by 2017.

Dalet just participated at the IBC tradeshow in Amsterdam (September 13 to 19), one of the largest international tradeshows for broadcast technology. Dalet gave a preview of its innovative upcoming solutions, in particular with the release of Dalet xN IMF Maker, an on-demand service available through Amazon Web Services (AWS) and Microsoft Azure Market, the first such service on the market capable of generating video packages compliant with the IMF (Interoperable Master Format) standard for OTT distribution.

Next publication

Q3 revenues on 3 November 2016 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: Guillaume Le Floch, 01 53 67 36 70
  • Press-Media: Vivien Ferran, 01 53 67 36 34

 

APPENDIX: DETAILED FINANCIAL INFORMATION H1 2016

INCOME STATEMENT BY FUNCTION 30-june 2015 30 june 2016
(in € thousands) 6 months 6 months
     
Revenues 21 858 20 896
Cost of revenues -11 339 -9 836
Gross Profit 10 519 11 059
Research and development -5 911 -6 084
Selling and marketing -4 913 -4 531
General and administrative -2 404 -2 312
Current operating income -2 709 -1 869
Other income and expenses from operations -
Operating income -2 709 -1 869
Net financial income (expense) -335 -146
Pre-tax income -3 044 -2 015
Income tax -247 -90
Net consolidated income -3 291 -2 105
Net income, Group share - 3 291 -2 105
 
INCOME STATEMENT BY NATURE OF EXPENSE 30-june 2015 30 june 2016
(in € thousands) 6 months 6 months
     
Revenues 21 858 20 896
Cost of goods and third-party services resold -4 511 -2 659
Commercial gross profit 17 347 18 236
Other external expenses -6 246 -5 939
Employee expenses -11 446 -12 144
Taxes and duties -182 -90
Other income and expenses from operations -177 -29
EBITDA -704 36
Amortization expense and provisions net of reversals -2 005 -1 905 
Current operating income -2 709 -1 869
Net financial income (expense) -335 -146
Pre-tax income -3 044 -2 015
Net consolidated income -247 -90
Net consolidated income -3 291 -2 105
Net income, Group share - 3 291 -2 105
 
BALANCE SHEET 31  dec 2015 30 june 2016
(in euro thousand)    
     
Goodwill 6 213 5 735
Intangible assets 5 959 5 595
Property, plant and equipment 1 367 1 360
Long-term financial assets 358 342
Long-term restricted cash 325 325
Other non-current assets 1 008 1 293
Deferred tax assets 415 407
NON-CURRENT ASSETS 15 644 15 057
Inventories 247 719
Trade receivables 14 483 15 040
Sundry debtors 1 427 1 398
Cash and cash equivalents 4 335 3 957
Current tax assets 166 43
CURRENT ASSETS 20 658 21 157
TOTAL ASSETS 36 302 36 213
     
Capital 7 187 7 187
Premiums 9 614 9 682
Consolidated reserves -3 334 -4 473
Consolidated income, Group share -800 - 2 106
Translation reserves 2 528 1 954
Shareholder’s equity (attributable to the Group) 15 194 12 245
Non-controlling interests 8 9
SHAREHOLDER’S EQUITY 15 202 12 253
Long-term financial debt 3 724 3 393
Long-term provisions 554 692
Deferred tax liabilities 880 675
Other non-current liabilities 744 712
NON-CURRENT LIABILITIES 5 901 5 472
Short-term financial debt 1 292 1 333
Current tax liabilities 81 164
Suppliers 3 349 3 549
Tax and social security liabilities 4 063 4 384
Other creditors 6 413 9 058
CURRENT LIABILITIES 15 198 18 488
TOTAL LIABILITIES 36 302 36 213
 
STATEMENT OF NET CASH FLOWS 30 june 2015 30 june 2016
(in € thousand) 6 months 6 months
Consolidated net income (including non-controlling interests) -3 291 - 2 105
+/- Depreciation, amortisation and provisions (except on current assets)                      2 045 1 929
+/- Impairment losses – Long term assets 411  
+/- Income and expense linked to stock options and similar 27 64
-/+ Other income and expense -37  
-/+ Gains and losses on disposals -1 1
Cash flow after cost of net financial debt and tax - 1 257 -112
+ Cost of net financial debt 78 82
+/- Tax expense (including deferred taxes) 247 90
Cash flow before cost of net financial debt and tax (A) -932 60
- Tax paid (B) -296 -189
+/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) 2 288 1 861
= NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C) 1 060 1 732
     
- Cash outflow for acquisitions of property, plant and equipment and intangible assets -1 714 -1 733
+ Cash from disposals of property, plant and equipment and intangible assets 7 1
+/- Impact of changes of scope -257  
+/- Change in loans and advances made 11 51
= NET CASH FLOW FROM INVESTMENT ACTIVITIES (E) -1 953 -1 682
     
-/+ Repurchase and resale of treasury shares -56 2
+ Cash from new borrowings 980 300
- Loan repayments (including finance leases) -448 -480
- Net financial interest paid (including finance leases) -79 -72
+/- Other cash flows from financing activities -11 -140
= NET CASH FLOW FROM FINANCING ACTIVITIES (F) 386 -390
     
+/- Impact of changes in exchanges rates (G) 593 -60
     
= CHANGE IN NET CASH POSITION (D + E + F + G) 86 -399
     
Cash at end of period    
Cash and cash equivalents – Bank overdrafts 4 615 3 917
     
Cash at opening    
Cash and cash equivalents – Bank overdrafts 4 529 4 317