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Jul 27, 2017
France
First Semester 2017 - Total Revenues: +9%
Strong Growth of Recurring Maintenance Revenues - Commercial Gross Margin: +9%

First Semester 2017 - Total Revenues: +9%

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 first half-year ended June 30, 2017.

(Unaudited) In € millionsH1 2016H1 2017Change

Licences5.95.9-

Maintenance - Support7.68.3+10%

Total Software Revenues13.514.2+6%

Services4.25.0+20%

Hardware3.33.5+6%

Total revenues for the semester20.922.7+9%

    

Total Commercial Gross Margin for the semester18.220.0+9%

 

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 first half-year ended June 30, 2017.

Total consolidated revenues for the semester were up by 9% at €22.7 million as compared to the first half of 2016. Second quarter revenues were €11.8 million, up 9% from the same period last year.

Software revenues (comprising licences and support revenues) were up 6% over the first six months of the year, bolstered by the 10% increase in recurring Maintenance revenues at €8.3 million. License revenues were stable.

Service revenues (integration, configuration and training professional services) were up 20% compared to last year’s first half, due to the large number of projects involving deployment and integration currently underway. Hardware resale, which is a low margin, non strategic business for Dalet, increased at a slower pace that the rest of the activity over the first half of 2017.

Commercial gross margin (defined as sales minus cost of goods and third-party services resold) increased in value by 9% at €20.0 million. Commercial gross margin rate increased slightly from 87.3% of revenues over the first half of 2016 to 87.9% for the same period this year, reflecting the more favorable sales mix.

Broken down by geographic region, Europe remains the largest zone in terms of revenues with revenues stable at €9.1 million. Revenues for the Americas were up by 7% at €8.5 million. Revenues for Asia Pacific were up by 26% at €3.7 million, revenues in Africa and the Middle East were up by 81% at €1.3 million as compared to the first semester of 2016. 

Outlook

Dalet revenues are in line with its business plan after these first six months. Backed by an order book standing at €25 million expected to be invoiced in the second half of 2017 ( €2 milion above the order book for the second semester of 2016 at the same period last year), Dalet expects to meet its goals for 2017 in terms of continued growth and progressive improvement of its operating margins.

Next publication

Full financial results for the first semester of 2017 on 19 September 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, 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 https://www.dalet.com

Contacts

Actus Finance & Communication :

  • Investors: Guillaume Le Floch / Theo Martin - 01 53 67 36 75
  • Press-Media: Vivien Ferran - 01 53 67 36 34

 

 

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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. 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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
2016 Yearly Results - Current Operating Income Up 385%
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 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
Eight 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 2016. Fourth quarter: +11% revenue growth Fourth quarter revenues were up 11% at €14.7 million, leading to Dalet’s eighth consecutive year of growth in 2016 with consolidated revenues up 2% at €48.2 million. The sales mix improved with Software revenues and services revenues up 3% and 10% respectively, making up for the decrease in hardware resale, a low margin, non-strategic business for Dalet (2015 revenues included a one-off exceptionally large hardware sale in Europe). Broken down by geographic region, revenues for Europe at €21.1 million (-6% given the impact of the decrease of hardware resale) contributed 43.6% of consolidated 2016 revenues. The other 3 zones drove the revenue growth, with a very good performance in the Asia Pacific region (+24%). Activity in the Americas was slightly up by 2%. Revenues for Africa and the Middle East were €2.2 million, a €0.6 million increase with respect to the previous year. Due to the more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +5% at €41.2 million, a higher level of growth than revenues. Expected improvement in operating margins The improvement in commercial gross margin should allow Dalet to meet its main goal for 2016 of growth of its current operating income, an important step towards its objective of a current operating margin of 4 to 5% in 2017. Perspectives Order intake was good at the end of 2016, in particular with a large contract worth several million dollars in North America. Dalet’s order book on January 1st 2017 stood at €36 million, stable with respect to the previous year. Backed as well by a strong pipeline of opportunities, boosted by the potential migration from existing customers to the new version Dalet Galaxy, Dalet expects continued growth in 2017, in particular for the Software revenues and professional services activities. Next publication 2016 yearly results on 25 April 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, FMM, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, eTV, 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 - Guillaume Le Floch: +33 1 53 67 36 70 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
Financial Results First Semester 2016
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 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
Solid First Quarter 2016
(Unaudited) In € millions Q1 2015 Q1 2016 Change Licences 2.1 2.5 +22% Maintenance - Support 2.9 3.7 +28% Total Software Revenues 5.0 6.3 +25% Services 1.9 1.8 -3% Hardware 2.8 2.0 -28% Total revenues for the quarter 9.6 10.1 +5% Total Gross Margin for the quarter 7.2 8.4 +17% Dalet, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, performed well in the first quarter of 2016, with total software revenues up 25% at €6.3 million. Dalet’s software solutions continue to score strong wins with leading broadcasters and content producers, as they perfectly address their needs in terms of gains in productivity and multi-channel distribution. The installed base thus grows from quarter to quarter, feeding recurring support revenues which were up 28% for the quarter at €3.7 million. Service revenues were stable compared to last year’s first quarter. Hardware resale (storage, servers….), which is a low margin, non strategic business for Dalet, diminished by an amount of €0.8 million, as Q1-2015 included a one-off exceptionally large contract signed with an operator which entrusted its entire infrastructure to Dalet. All told, Dalet posted consolidated revenues (unaudited) for the quarter up 5% at €10.1 million. Broken down by geographic region, the Group reaped the rewards of its commercial investment in Asia Pacific with revenues that more than doubled (+106%) at €1.5 million. Revenues for Europe, which represented 44% of total revenues over the quarter, were virtually stable at €4.4 million, in spite of the unfavorable base effect linked to the low-margin hardware sales in Q1-2015. Africa and the Middle East accounted for €0.3 million revenues over the quarter, compared to €0.4 million for the same period last year. Finally revenues for the Americas, the Group’s second largest contributor, accounted for €3.8 million, up +4%. The gross margin rate (defined as sales minus cost of goods and third-party services resold) amounted to 84% of revenues over the first quarter of 2016 as against 75% for the same period in 2015. In value terms, Dalet’s gross margin increased 17% to €8.4 million, a higher level of growth than revenues as expected. Outlook: good visibility on continued growth and confirmation of target for current operating margin In terms of sales, Dalet continues expanding its indirect channel and increasing its visibility by attending regularly tradeshows and main events in the industry. Dalet exhibited recently at the NAB show in Las Vegas from April 18 to 21st. The latest release of Dalet’s video transcoding solution, AmberFin, won at the show an award for its quality and breadth of functionality, in particular its capabilities in terms of workflows supporting 4K and other ultra high definition formats, which are being increasingly adopted by the industry. In parallel, the company continues to strengthen its sales reach internationally, notably in the promising Asia-Pacific region. In this perspective and backed by a high order book standing at €31 million expected to be invoiced in 2016, Dalet confirms its confidence for continued growth in 2016, and confirms its target for a current operating margin of 4 to 5% by 2017. Next publication Q2 revenues on 21 July 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., 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
First Semester 2016 - Software Revenues: +10%
(Unaudited) In € millions H1 2015 H1 2016 Change Licences 5.4 5.9 +9% Maintenance - Support 6.9 7.6 +10% Total Software Revenues 12.3 13.4 +10% Services 3.9 4.2 +7% Hardware 5.7 3.3 -43% Total revenues for the semester 21.9 20.9 -4% Total Gross Margin for the semester 17.3 18.2 +5% 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 first half-year ended June 30, 2016. Overall software revenues (comprising licences and support revenues) were up 10% over the first six months of the year. The growth differential in this line of revenue between Q1 (+25%) and Q2 (-2%) is due to revenue recognition in the first quarter of 2016 for several overdue maintenance contract renewals, whereas in 2015 similar late support-contract revenue recognition occurred in Q2. Growth in software 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. Service revenues (integration, configuration and training professional services) were up 7% compared to last year’s first half. Hardware resale, which is a low margin, non strategic business for Dalet, diminished significantly (-43%), as H1-2015 included a one-off exceptionally large contract signed with an operator which entrusted its entire infrastructure to Dalet. As a direct consequence of the decrease in hardware resale, total consolidated revenues for the semester were down by 4% at €20.9 million. However gross margin (defined as sales minus cost of goods and third-party services resold) increased by 5% at €18.2 million, reflecting the more favorable sales mix. Gross margin rate increased to 87% of revenues over the first semester of 2016 up from 79% for the same period in 2015. Broken down by geographic region, the Group’s earlier investments in Asia Pacific have delivered a revenue increase of 20% at €2.9 million (14% of total revenues for the semester). Europe (€9.2 million revenues) remains the largest zone in terms of revenues at 44% compared to 49% in H1-2015. After neutralizing the unfavorable base effect linked to the low-margin hardware sales in H1-2015, business in Europe remains on a positive trend. Revenues for the Americas increased slightly at €8 million, representing 38% of total revenues (compared to 36% in H1 2015). Revenues for Africa and the Middle East were stable at 3% of total revenues. Outlook Dalet revenues are in line with its business plan after these first six months. Backed by an order book standing at €23 million expected to be invoiced in the second half of 2016, and by new contracts under negotiation, Dalet expects continued growth in 2016, in particular in terms of gross margin as announced previously. Dalet expects to meet its goal for a progressive improvement of its operating margins, with an objective of a current operating margin of 4 to 5% by 2017. Next publication Full financial results for the first semester of 2016 on 22 September 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., 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
2015 yearly results in line with forecasts
In € million 2014 published 2014 pro forma (*) 2015 Change pro forma Revenues 42.1 43.1 47.4 +10% Gross margin 35.6 36.4 39.0 +7% Current operating income 0.3 (0.4) 0.3 NS Operating income 0.3 (0.4) (0.1) NS Net income, Group share 0.2 (0.6) (0.8) NS (*) Pro forma figures include 12 months for AmberFin (vs. 9 months in 2014 published) 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 2015 as approved by its Board of Directors on 21 April 2016[1]. 2015 was another year of robust growth for Dalet, with the completion of the reorganization of AmberFin (in deficit at the time of its purchase in 2014) and ongoing investment in growth (R&D, sales teams) setting the company on track to realize its full potential in the coming years. 2015 financial results: Dalet posted revenues of €47.4 million for financial year 2015, up 13% on the year before (10% pro forma). The breakdown in revenues was as follows: Software: €28.3 million (+14%). Dalet's Software revenues were bolstered by the company’s maintenance-support contracts which, at €14.9 million, accounted for 31% of global revenues in 2015. License sales were stable at €13.4 million. Services: €9.2 million (-11%). The change in Services revenues in 2015 is directly linked to the sale of system-type projects which include integration and training professional services for the client. Hardware (storage, servers, etc.): €10.0 million (+27%). Hardware resale, a non strategic business for Dalet, grew significantly in 2015 due to a one-off exceptionally large contract signed with an operator which entrusted its entire infrastructure to Dalet. This unusual weighting in hardware sales reduced the company’s gross margin (defined as sales minus cost of goods and third-party services resold) which amounted to 82% for the year as against 84% in 2014. In value terms, Dalet’s gross margin increased 7% to €39.0 million (pro forma). Other operating expenses increased 5.2% (pro forma). The Group continued to strengthen its headcount, focusing notably on the strategic ramp-up of its sales teams for the Asia-Pacific region and its ongoing investment in R&D. The reorganization of AmberFin was also completed. The capitalisation 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 amortisation of R&D expenses in a similar amount. All told, Dalet posted a current operating income of €0.3 million which is consistent with the Group's guidance published in February. It also booked an exceptional (non cash) expense of €0.4 million linked to the impairment of goodwill on AmberFin, primarily linked to the fluctuation in the pound sterling. After €0.3 million in financial expenses and €0.3 million in tax, net income amounted to a loss of €0.8 million. Healthy financial structure – Net debt close to zero Dalet shareholder’s equity stood at €15.2 million on 31 December 2015. Cash flows linked to operations improved significantly, coming in at €3.4 million compared to €1.0 million in 2014, notably thanks to the Group's careful management of its working capital. These cash flows linked to operations covered almost all investments for the period (€3.6 million), most of which were linked to the capitalisation of R&D. Net debt remained virtually stable at €0.6 million. With cash assets of €4.3 million, Dalet has the sound financial structure it needs to pursue its development in the years ahead. Outlook: Growth and improvement in margins Backed by a high order backlog on 1 January 2016 (€36 million), and given the sustained demand for its software solutions and the cumulative increase in support contracts, Dalet confidently expects to continue growing its business in 2016. The company should see a higher level of growth in its gross margin than in revenues as a result of the base effect linked to a single low-margin hardware sales contract signed in 2015. One of the main priorities for 2016 is the gradual improvement of Dalet's current operating profit. As it actively seeks out to grow its market share, the Group has set as a first target a current operating margin of 4 to 5% by 2017. 2016 will see the company focus on the implementation of an improved project management process (CMMI) in an effort to improve profitability. It will also benefit from the growing share of maintenance-support in its revenues as well as increased sales of its "plug and play" packaged solutions (Brio, AmberFin). Dalet intends to uphold its ranking amongst the 3 leaders in its market which is undergoing concentration. Next publication Q1 revenues on 12 May 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., 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 APPENDIX: DETAILED FINANCIAL INFORMATION 2015 INCOME STATEMENT 31-dec.-15 31-dec.-14 31-dec.-14 (in € thousand) 12 months 12 months published 12 months pro forma (*) Revenues 47,463 42,112 43,055 Purchases and other external expenses (20,917) (19,048) (19,724) Employee expenses (22,211) (19,757) (20,737) Taxes and duties (200) (470) (470) Depreciation and amortisation (3,620) (2,680) (2,673) Provisions net of reversals (62) 66 66 Other income and expenses from operations (168) 61 61 Current operating income 285 284 (422) Impairment losses – Long term assets (411) Operating income (125) 284 (422) Income from cash and cash equivalents 19 4 4 Cost of gross financial debt (173) (147) (147) Cost of net financial debt (153) (143) (143) Other financial income and expense (182) 144 130 Pre-tax income (461) 285 (435) Income tax (339) (125) (125) Net consolidated income (800) 160 (560) Attributable to the Group (800) 160 (560) Attributable to non-controlling interests 0 (*) Pro forma figures include 12 months for AmberFin (vs. 9 months in 2014 published) STATEMENT OF FINANCIAL POSITION 31-dec.-15 31-dec.-14 (in € thousand) 12 months 12 months Goodwill 6,213 6,349 Intangible assets 5,959 6,104 Property, plant and equipment 1,367 1,216 Long-term financial assets 358 373 Long-term restricted cash 325 308 Other non-current assets 1,008 299 Deferred tax assets 415 399 NON-CURRENT ASSETS 15,644 15,048 Inventories 247 530 Trade receivables 14,483 14,239 Sundry debtors 1,427 1,449 Cash and cash equivalents 4,335 4,940 Current tax assets 166 911 CURRENT ASSETS 20,658 22,069 TOTAL ASSETS 36,302 37,117 Capital 7,187 7,187 Premiums 9,614 9,620 Consolidated reserves (3,334) (3,995) Consolidated income (800) 160 Translation reserves 2,528 1,444 Shareholder’s equity (attributable to the Group) 15,194 14,416 Non-controlling interests 8 7 SHAREHOLDER’S EQUITY 15,202 14,423 Long-term financial debt 3,724 4,056 Long-term provisions 554 878 Deferred tax liabilities 880 828 Other non-current liabilities 744 565 NON-CURRENT LIABILITIES 5,901 6,327 Short-term provisions 185 Short-term financial debt 1,292 1,324 Current tax liabilities 81 14 Suppliers 3,349 3,528 Tax and social security liabilities 4,063 3,600 Other creditors 6,413 7,716 CURRENT LIABILITIES 15,198 16,367 TOTAL LIABILITIES 36,302 37,117 STATEMENT OF NET CASH FLOWS 31-dec-15 31-dec-14 (in € thousand) 12 months 12 months Consolidated net income (including non-controlling interests) (800) 160 +/- Depreciation, amortisation and provisions (except on current assets) 3,416 2,829 +/- Impairment losses – Long term assets 411 +/- Income and expense linked to stock options and similar 93 103 -/+ Other income and expense 2 -/+ Gains and losses on disposals (1) (17) Cash flow after cost of net financial debt and tax 3,118 3,077 + Cost of net financial debt 153 143 +/- Tax expense (including deferred taxes) 339 125 Cash flow before cost of net financial debt and tax (A) 3,611 3,345 - Tax paid (B) (182) (141) +/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) (20) (2,221) = NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C) 3,408 983 - Cash outflow for acquisitions of property, plant and equipment and intangible assets (3,565) (2,746) + Cash from disposals of property, plant and equipment and intangible assets 178 126 +/- Impact of changes of scope (257) (4,059) +/- Change in loans and advances made (3) (105) = NET CASH FLOW FROM INVESTMENT ACTIVITIES (E) (3,647) (6,784) -/+ Repurchase and resale of treasury shares (56) (224) + Cash from new borrowings 883 3 540 - Loan repayments (including finance leases) (1,052) (628) - Net financial interest paid (including finance leases) (147) (147) +/- Other cash flows from financing activities 156 25 = NET CASH FLOW FROM FINANCING ACTIVITIES (F) (216) 2,566 +/- Impact of changes in exchanges rates (G) 242 343 = CHANGE IN NET CASH POSITION (D + E + F + G) (212) (2,892) Cash at end of period Cash and cash equivalents – Bank overdrafts 4,317 4,529 Cash at opening Cash and cash equivalents – Bank overdrafts 4,529 7,421 Change (212) (2,892) [1] The consolidated financial statements have been audited in full. The auditors' report will be published once the due diligence procedures required for the publication of the yearly financial report are complete.
Chiffre d’Affaires 2015 : 47,4 M€ (+10% en Proforma)
In € million 2014 published 2014 pro forma (*) 2015 Change pro forma Licenses 13.4 13.8 13.4 -3% Maintenance - Support 11.4 11.8 14.9 +26% Total Software Revenues 24.8 25.6 28.3 +10% Services 9.5 9.6 9.2 -4% Hardware 7.8 7.9 10.0 +27% Total Revenues 42.1 43.1 47.4 +10% Total Gross Margin 35.6 36.4 39.0 +7% Pre-audit figures - (*) Pro forma figures include 12 months for AmberFin (vs. 9 months in 2014 published) 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 of €47.4 million for financial year 2015, up 13% on the figure published for 2014 (+10% pro forma). Broken down by geographic region, growth was primarily driven by activity in the Americas (+38% to €18.0 million with a positive euro-dollar parity impact of €2.8 million) and Asia-Pacific (+11% to €5.4 million) as the Group reaped the first rewards of its recent commercial investments. Revenues for Europe, which remains the largest contributor, were virtually stable at €22.5 million, with Africa and the Middle East accounting for €1.5 million over the period (-€0.5 million in relation to 2014). All told, Dalet’s seventh consecutive year of growth in 2015 reflects a strong sales dynamic that combines the steady acquisition of new accounts with new orders and repeat maintenance contracts from a firmly-established client base. Pro forma, Dalet’s Software revenues for 2015 grew 10% driven by the increase in maintenance-support contracts linked directly to the number of licenses sold in 2014. License revenues were both strong and stable in 2015, with Brio solution sales accelerating over the period. Invoicing for services was globally in line with license sales. Hardware sales (storage, servers, etc.) were particularly high in 2015 due to an exceptionally large contract signed with a broadcaster which entrusted its entire infrastructure to Dalet. This unusual weighting in hardware sales reduced the company’s gross margin rate (defined as sales minus cost of goods and third-party services resold) which amounted to 82% for the year as against 84% in 2014. In value terms, Dalet’s gross margin increased 10% to €39.0 million (+7% pro forma). In a year still marked by strategic commercial investments, notably in the Asia-Pacific region, and by the reorganization of Amberfin, Dalet’s gross margin level will translate into an operating result before non-recurring items close to break-even for the period. The Group has a sound financial structure and a net debt close to zero. Outlook: Good visibility for continued growth Backed by a very high order book on 1 January 2016 (€36 million), and given the sustained demand for its software solutions and the cumulative increase of its support contracts, Dalet confidently expects to see further growth in 2016. The Group will continue to expand its indirect sales with integrator partners around the world, and notably intends to increase the proportion of sales linked to packaged software solutions (products) that yield better returns. Next publication 2015 yearly results on 21 April 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., 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 - +33 1 53 67 36 70 Press-Media : Vivien Ferran - +33 1 53 67 36 34
Revenues for the Third Quarter of 2015
In euro millions20152014Change 2015/142014 pro-formaChange in % vs 2014 pro-forma Third Quarter revenues12.310.715% Third Quarter gross margin9.49.05% Third Quarter gross margin rate76%84% Revenues first 9 months34.229.118%30.014% Gross Margin first 9 months26.723.912%24.78% Gross Margin rate first 9 months78%82% 82% Dalet has announced consolidated revenues (unaudited) for the third quarter of 2015 of €12.3 million, compared to €10.7 million in Q3 2014 (+15%). Gross Margin (defined as revenues minus cost of goods and third-party services resold) for the quarter was €9.4 million, up 5% from €9.0 million for the same period in 2014. Gross Margin rate for the quarter was 76% vs 84% in Q3 2014. In terms of geographical distribution of revenues for the third quarter, Europe represented 49% of revenues, Americas represented 33%, Asia-Pacific 11% and Middle-East Africa 6%. Consolidated revenues for the nine-month period ended September 30, 2015 were €34.2 million (unaudited), up 18% from €29.1 million for the same period last year. Including on a pro-forma basis Q1-2014 revenues from the AmberFin subsidiary acquired in April 2014, revenues for the first nine months were up 14%. Gross Margin for the nine months was €26.7 million, up 12% from €23.9 million for the same period in 2014, and up 8% on a pro-forma basis. Cash (unaudited) on September 30, 2015 stood at €4.3 million, debt stood at €5.2 million. Dalet's order backlog expected to be invoiced in Q4 2015 stands at €13 million. 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 (Antena 3, Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., Sirius XM Radio) and government organizations (Queensland JAG, Canadian House of Commons, The European Commission). 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