Better Together! Dalet Acquires Ooyala Flex Media Platform business.
Dalet consolidated revenues for 2006 were €17.5 million, an 8% increase with respect to €16.3 million in 2005. Gross margin increased by 12% from €14.3 million to €15.9 million, the gross margin rate reaches 91%.
|in Euro millions||H2-06||H1-06||2006||2005||Variation 2006/2005|
|Cost of goods sold||-0,8||-0,8||-1,6||-2,1||_|
|Gross margin rate||91%||90%||91%||87%||+4%|
|Other operating costs||-3,2||-3,4||-6,6||-7,0||-6%|
|Depreciation and amortization||-0,7||-0,5||-1,2||-0,6||_|
|Operating result before non recurring items||0,9||-0,3||0,6||-2,5||_|
Dalet has maintained a well balanced geographical distribution of its revenues, and its sales mix has continued to improve: license revenues increase from 28% of sales to 32%, associated professional services from 29% to 32%, resale of hardware drops from 19% to 14%, recurring support revenues are stable at €3.9 million (23% of revenues).
At the same time, operating expenses decreased, notably personnel costs (-17%). Indirect sales (excluding support revenues) represented 52% of sales in 2006 vs. 37% in 2005. This indirect sales channel strategy, in particular with large system integrators, has allowed for an increase in sales while controlling costs.
Operating profit before non recurring items is €0.6 million, a very significant improvement compared to a loss of €2.5 million in 2005. Operating profit is €0.4 million, compared to an operating loss of €3.1 million for 2005. In addition, the €1 million revenue increase between the first semester and the second semester of 2006, due to the seasonality of Dalet activity, has been achieved without any increase in the level of operating expenses, thus indicating that the breakeven point typical of software companies has been reached.
Net result is almost breakeven at -€0.1 million, compared to -€4.0 million in 2005. It includes a financial cost of €0.4 million related to the convertible loan issued in 2004 (interest and interest premium in case of non conversion of the bonds at maturity).
Dalet shareholders, both institutional funds as well as individual shareholders, have shown their confidence in the company and in its recovery:
by converting in advance part of the convertible bonds issued in March 2004, which reach maturity in 2008 and 2009 (720,000 bonds converted out of a total of 3.6 million), thus reducing the company’s debt;
by exercising during the first quarter of 2007 the warrants issued together with the convertible offering: 90% of warrants still not exercised on Dec. 31, 2006 were exercised before the March 2007 expiration date. This has resulted in a capital increase of €0.88 million.
David Lasry, CEO of Dalet, commenting on the figures released: "Our 2006 results are an important milestone in our development plan. After years of significant investments in R&D, the growth in sales of our new solutions for TV digital production, in particular through our indirect channel, coupled with a tight control of our expenses, has allowed us to reach breakeven. The new contracts and system extensions signed early in 2007 with key references such as BBC Arabic TV and CBS Sports demonstrate our aggressive sales presence and the maturity of our product offering on the market. It offers us a unique competitive advantage for coming news and sports projects related to the emergence of new distribution platforms (Digital Terrestrial TV, IPTV, HDTV, mobile TV)".
Dalet is a leading developer of software solutions that facilitate the management of audio and video assets for broadcast, entertainment, government, education, corporations and non-profit organizations. Developed for standard IT hardware, Dalet software solutions enable organizations to capture, manage and store digital media. The all-digital solutions greatly enhance productivity through immediate access to and management of valuable media assets. Dalet solutions are used in 50 countries by over 1,700 customers including the largest public broadcasters (ARD, BBC, CBC, Deutsche Welle, Media Corporation of Singapore, NPR, RFI, Radio Suisse Romande, VOA), commercial networks (Arab Radio and Television, BFMTV, Emap, Emmis Broadcasting, Prime TV and XM Satellite) and government organizations (Queensland Courts, The Scottish Parliament).
Eurolist C – Paris ISIN : FR0000076176 – Reuters : DALE.PA - Bloomberg DLT:FP Number of outstanding shares: 12.725.483, and 870.563 shares on a secondary line (DALET NV, ISIN FR0010420448)
Contact Dalet: Tel: +33 1 41 27 67 00 Visit the « Corporate » section dedicated to Investor Relations on our website https://www.dalet.com
|Restricted cash (over 12 months)||0,7||0,3|
|Other non current assets||0,2||0,2|
|Total non current assets||7,7||6,4|
|Other current assets||0,8||3,7|
|Cash and cash equivalents||2,6||1,5|
|Total current assets||10,7||10,5|
|Long-term financial debt||4,2||5,2|
|Deferred tax liabilities||0,4||0,6|
|Total non current liabilities||4,8||5,9|
|Short term provisions||0,3||0,4|
|Short term financial debt||1,4||0,7|
|Liability for current tax||1,8||1,9|
|Other current liabilities||3,3||2,8|
|Total current liabilities||8,4||7,5|
|Total Liabilities and Shareholders’ Equity||18,4||16,9|
|Cash at beginning of period||1,5||4,2|
|Cashflow before cost of net financial debt and tax (A)||1,3||-2,8|
|- Income tax paid (B)||0||-0,1|
|+/- Change in cashflow requirement associated with the activity(C)||-1,0||1,5|
|= Cashflow generated by operating activities (D)=(A+B+C)||0,3||-1,4|
|Cashflow associated with investment operations (E)||-2,3||-2,4|
|Cashflow associated with financing operations (F)||3,0||1,2|
|+/- Impact of changes in exchange rates (G)||0,1||-0,1|
|= Change in net cash position (D + E + F + G)||1,0||-2,7|
|Cash at end of period||2,6||1,5|