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Jul 23, 2018
France
Strong Growth of License Sales in Second Quarter
Dalet announced today revenues (unaudited) for its second quarter and for the first half-year ended June 30, 2018.

Total Revenues H1-2018: +11% - Full Year 2018 Guid

Revenues for the second quarter were up by 16% to reach €13.7 million, fueled mainly by the strong growth in License sales at 36%.

(Unaudited) In € millions H1 2017 H1 2018

Change

Licences

5.9

7.1

+21%

Maintenance - Support

8.3

8.6

+3%

Total Software Revenues

14.2 15.6 +10%

Services

5.0 5.6 +11%

Hardware

3.5 3.9 +13%

Total revenues for the semester

22.7 25.2 +11%

 

     

Total Commercial Gross Margin for the semester

20.0 22.2 +11%

Commercial Gross Margin rate

87.9% 88.1%  

 

Strong growth in license revenues in 2nd quarter

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 second quarter and for the first half-year ended June 30, 2018.

Revenues for the second quarter were up by 16% to reach €13.7 million, fueled mainly by the strong growth in License sales at 36%.

 

Growth across all revenue streams

The resulting revenues over the first half of 2018 were €25.2 million, up by 11% as compared to the first half of 2017 (+17% at constant exchange rate).

All revenue streams progressed during the semester. Software revenues (comprising licenses and support revenues) were up 10% over the first six months of the year at €15.6 million. Service revenues (integration, configuration and training professional services) continued progressing as in previous semesters, reaching €5.6 million, up 11% compared to last year’s first half. Hardware resale, which is a low margin, non-strategic business for Dalet, was up 13% at €3.9 million. Commercial gross margin (defined as sales minus cost of goods and third-party services resold) reached €22.2 million, an 11% growth rate in line with the revenues growth.

Broken down by geographic region, Europe which is the largest zone in terms of revenues, demonstrated a strong resurgence in first semester, with sales up 20% at €11 million when compared to a relatively flat first half for the previous year. Revenues for the Americas continued posting healthy growth at €9.8 million, up 15%. Asia Pacific sales slowed (-15%) as compared to last year’s particularly strong (+26%) results; first semester revenues of €1.2 million in Africa and the Middle East represented a 6 % decrease.

 

Outlook

This first semester’s strong performance allows Dalet to confirm its targets for 2018 for high single-digit revenue growth and of a current operating margin of 5 to 6%. In a market which has shown a slightly prolonged customer decision-making process at the end of the 2nd quarter, Dalet continues its aggressive sales efforts, including demonstrations of new innovations which will be presented at the upcoming IBC Show between September 13 to 18 in Amsterdam.

 

Next publication

Full financial results for the first semester of 2018 on 17 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, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., SiriusXM) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).

Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit https://www.dalet.com

 

Contacts


Actus Finance & Communication:

  • Investors: Theo Martin +33 1  53 67 36 75
  • Press-Media: Vivien Ferran +33 1 53 67 36 34

 

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2017 Yearly Results
In € millions 2016 2017 Change Revenues 48,2 51,1 +6% Cost of goods and third-party services resold 7,0 6,4 -8% Commercial gross profit 41,2 44,6 +8% Commercial gross margin 85% 87% +2pts Other cost of revenues 14,6 15,9 +9% Gross profit 26,6 28,7 +8% Gross Margin 55% 56% +1pt Research and development 11,6 12,0 +3% Selling and marketing 9,0 9,4 +4% General and administrative 4,6 5,0 +9% Current operating income 1,4 2,4 +73% Operating income 1,3 1,9 +42% Net income, Group share 0,66 0,73 +10% The consolidated financial statements have been audited. The auditors' report will be published once the due diligence procedures required for the publication of the yearly financial report are complete. DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, has published its yearly audited results for financial year 2017. Record revenues, continued improvement of the Gross Margin Dalet posted in 2017 its ninth consecutive year of growth, with record revenues at €51.1 million, up 6% when compared to 2016. The improved sales mix and a better margin on services contributed to a Gross Profit of €28.7 million, up by 8%. Current operating margin reaches upper range of guidance As a result of well-controlled expenses, in particular moderate increase of R&D spending, current operating income climbed to €2.4 million, up 73% as compared to 2016. In percentage, current operating margin for 2017 was 4.7%, in the upper range of the margin objectives defined by the group in its 2016/2017 business plan. An exceptional provision for €0.6 million was recorded related to the final settlement of a commercial dispute on an old project from 2014. The resulting operating income reached €1.9 million, up 42%. After financial expenses and income tax, including a deferred tax expense (non cash) of €0.3 million, net income was up by 10% at €0.7 million. Net cash position: €2.2 million Net cash on 31 December 2017 stands at €2.2 million, up by €0.9 million. Shareholders’ equity stood at €15.2 million on 31 December 2017. Outlook: sustained revenue growth and current operating margin target of 5% to 6% in 2018 Dalet confirms the target of mid to high single digit organic revenue growth in 2018 announced together with the publication of its 2017 revenues. Dalet’s revenue growth will be aided by the enriched feature set of its product portfolio in particular on the new Artificial Intelligence technologies. These offerings are just starting to be released and they were very well received at the recent April NAB show in Las Vegas. In parallel, the group will continue to realize margin improvements based on the combination of higher software revenues in the sales mix, further gains in service margins, and better distribution of fixed costs across the larger volume of revenue. Dalet’s objective for 2018 current operating margin is between 5% and 6%. Next publication Q1-2018 revenues on 14 May 2018 after the close of trading About Dalet Digital Media Systems Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. 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For more information on Dalet, visit www.dalet.com Contacts Actus Finance & Communication : Investors: Théo Martin +33 1 53 67 36 75 Press-Media: Vivien Ferran +33 1 53 67 36 34 APPENDIX: DETAILED FINANCIAL INFORMATION 2017 INCOME STATEMENT BY FUNCTIN (in euro thousands) 2016 2017 Revenues 48 226 51 052 Cost of Revenues -21 627 -22 307 Gross Profit 26 598 28 744 Research and Development expenses -11 634 -11 968 Selling and Marketing expenses -8 984 -9 361 General and Administrative expenses -4 599 -5 032 Current Operating Income 1 381 2 383 Other operating income and expenses -76 -524 Operating Income 1 305 1 859 Financial income and expenses -425 -377 Pre-tax income 880 1 482 Income Tax -220 -754 Net consolidated income 660 728 Net consolidated income, attributable to Group 660 727 INCOME STATEMENT BY NATURE OF EXPENSE (in euro thousands) 2016 2017 Revenues 48 226 51 052 Cost of Goods and third-party services resold -7 001 -6 432 Commercial Gross Profit 41 225 44 620 Commercial Gross Margin 85,5% 87,4% Purchases and other external expenses -12 540 -13 209 Employee expenses -23 524 -24 901 Taxes and duties -179 -199 Other operating income and expenses -56 0 EBITDA 4 926 6 311 Depreciation, Amortization and Provisions net of reversals -3 545 -3 928 Curent Operating Income 1 381 2 383 BALANCE SHEET (in euro thousands) Dec 31 2016 Dec 31 2017 Goodwill 5 604 5 476 Intangible assets 5 375 5 034 Property, plant and equipment 1 333 1 286 Long-term financial assets 360 349 Long term restricted cash 180 417 Other non-current assets 1 718 2 343 Deferred tax assets 424 58 NON-CURRENT ASSETS 14 992 14 963 Inventories 428 353 Trade receivables 17 814 17 823 Sundry debtors 1 701 1 288 Cash and cash equivalents 6 532 6 528 Current tax assets 299 412 CURRENT ASSETS 26 774 26 404 TOTAL ASSETS 41 766 41 366 Capital 7 187 7 189 Premiums 9 682 9 682 Consolidated reserves -4 655 -3 904 Consolidated income 660 727 Translation reserves 2 276 1 495 Shareholder's Equity (attributable to the Group) 15 150 15 189 Non-controlling interests 9 9 SHAREHOLDERS' EQUITY 15 159 15 198 Long term financial debt 2 930 2 550 Long term provisions 677 733 Deferred tax liabilities 578 548 Other non current liabilities 754 811 NON CURRENT LIABILITIES 4 938 4 641 Short-term provisions 96 609 Short-term financial debt 2 332 1 789 Current tax liabilities 38 101 Suppliers 3 962 3 077 Tax and social security liabilities 4 316 4 583 Other creditors 10 926 11 369 CURRENT LIABILITIES 21 669 21 527 TOTAL LIABILITIES 41 766 41 366 STATEMENT OF NET CASH FLOWS 31 dec 2016 31 dec 2017 (in € thousand) 12 months 12 months Consolidated net income (including non-controlling interests) 660 728 +/- Depreciation, amortisation and provisions (except on current assets) 3 841 4 397 +/ - Income and expense linked to stock options and similar 89 72 -/+ Gains and losses on disposals -5 6 Cash flow after cost of net financial debt and tax 4 585 5 202 + Cost of net financial debt 128 7 +/- Tax expense (including deferred taxes) 220 754 Cash flow before cost of net financial debt and tax (A) 4 933 5 963 - Tax paid (B) -563 - 480 +/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) 769 - 449 = NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C) 5 139 5 035 - Cash outflow for acquisitions of property, plant and equipment and intangible assets -3 334 - 3602 + Cash from disposals of property, plant and equipment and intangible assets 35 83 +/- Change in loans and advances made 33 10 = NET CASH FLOW FROM INVESTMENT ACTIVITIES (E) -3 265 - 3 509 -/+ Repurchase and resale of treasury shares -23 -1 + Cash from new borrowings 415 1 020 - Loan repayments (including finance leases) -1 150 -1 411 - Net financial interest paid (including finance leases) -112 6 +/- Other cash flows from financing activities 903 - 727 = NET CASH FLOW FROM financing activities (F) 34 -1 114 +/- Impact of changes in exchange rates (G) 87 -357 = CHANGE IN NET CASH POSITION (D + E + F + G) 1 996 55 Cash at end of period Cash and cash equivalents - Bank overdrafts 6 313 6 367 Cash at opening Cash and cash equivalents - Bank overdrafts 4 317 6313
Ninth Consecutive Year of Growth
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today consolidated revenues (unaudited) for financial year 2017. Steady growth of revenues and commercial gross profit Fourth quarter revenues were up 4% at €15.3 million. Growth was mainly driven by the increase in services revenues (+28% over the quarter), which balanced the decrease in hardware resale (-18%), a non strategic, low margin activity. Software revenues (licenses + maintenance) were up slightly by 1%. In terms of full year revenues, Dalet posted in 2017 its ninth consecutive year of growth, with consolidated revenues up 6% at €51.1 million. Software revenues were up 5%, bolstered by an increase of more than 7% in recurring maintenance revenues. License revenues were up 2%. Service revenues were up 21%, due to the large number of projects conducted during the year involving deployment and integration. Hardware resale was down by 8%. Due to the more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by 8% at €44.6 million. Broken down by geographic region, the Americas were the main contributor to the growth in 2017, with revenues up by 13% at €20.7 million. Revenues for Europe slightly decreased by -2% at €20.7 million, mainly due to the decrease in non-strategic hardware resale. Excluding this hardware resale effect, sales in Europe were up by 2% in 2017. Dalet continued its expansion in the Asia Pacific region, with revenues up 8% at €7.3 million, as well as in Middle-East Africa, where revenues were up 10% at €2.4 million. Confirmation of current operating income target for 2017 The initiatives taken by Dalet to better control its costs in deployment of large projects, combined with the revenues growth and sales mix evolution, should deliver for 2017 a current operating margin slightly above 4%. Outlook: Expected sustained growth in 2018 Moving into 2018, Dalet can rely on a strong order intake in 2017, with several large contract wins in the Americas. The order book on January 1st 2018 stood at €40 million, up 12% from last year. Dalet expects in 2018 to continue progress towards its strategic goals, and targets mid to high single digit organic revenue growth. Dalet will announce its 2018 target for current operating margin together with the publication of the full 2017 financial results. Next publication 2017 yearly results on 23 April 2018 after the close of trading About Dalet Digital Media Systems Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards. Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, FMM, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, Mediaset, Orange, Time Warner Cable, Warner Bros., Sirius XM Radio) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA). Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit www.dalet.com Contacts Actus Finance & Communication: Investors: Théo Martin +33 1 53 67 36 36 Press-Media: Vivien Ferran +33 1 53 67 36 34
9 Months Business Activity 2017
Dalet, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its third quarter and for the nine-month period ended September 30, 2017. Third quarter: +10% in license sales (Unaudited) In € millionsQ3 2016Q3 2017Change Licences3.13.4+10% Maintenance - Support3.94.2+8% Total Software Revenues7.07.6+9% Services2.73.0+12% Hardware2.92.5-16% Total revenues12.613.1+4% Commercial Gross Profit10.211.2+9% * Commercial Gross Profit is defined as sales minus cost of goods and third-party services resold Dalet revenues for the third quarter were up 4% at €13.1 million, in spite of a 16% decrease in Hardware resale, which is a low margin, non-strategic business. Overall software revenues (comprising licenses and support revenues) was up by 9%, with licenses up by 10%, due to a significant number of system installations over the period. 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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
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This innovative solution was awarded by a panel of judges from the industry the "Best of Show Award', one of the most prestigious awards at the show. Next publication Q3 revenues on 6 November 2017 after the close of trading About Dalet Digital Media Systems Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards. Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., SiriusXM) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA). Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit www.dalet.com. Contacts Actus Finance & Communication : Investors: Guillaume Le Floch +331 53 67 36 70 Press-Media: Vivien Ferran +331 53 67 36 34 APPENDIX: DETAILED FINANCIAL INFORMATION H1 2017 INCOME STATEMENT BY FUNCTION30 june 201630 june 2017 (in € thousands)6 months6 months Revenues 20 89622 964 Cost of revenues-9 836- 10 657 Gross Profit11 05912 037 Research and development-6 084- 5 992 Selling and marketing-4 531- 4 890 General and administrative-2 312- 2 600 Current operating income-1 869- 1 445 Other income and expenses from operations- 76 Operating income-1 869-1 369 Net financial income (expense)-146- 325 Pre-tax income-2 015- 1 694 Income tax-90-246 Net consolidated income-2 105- 1 940 Net income, Group share-2 105-1 940 INCOME STATEMENT BY NATURE OF EXPENSE30 june 201630 june 2017 (in € thousands)6 months6 months Revenues 20 89622 694 Cost of goods and third-party services resold-2 659-2 737 Commercial gross profit18 23619 957 Other external expenses-5 939- 6 649 Employee expenses-12 144-12 747 Taxes and duties-90-99 Other income and expenses from operations-29-21 EBITDA36442 Amortization expense and provisions net of reversals-1 905 - 1 886 Current operating income-1 869-1 445 Net financial income (expense)-146- 325 Pre-tax income-2 015-1 694 Net consolidated income-90- 246 Net consolidated income-2 105- 1940 Net income, Group share-2 105- 1940 BALANCE SHEET31 dec 201630 june 2017 (in euro thousand) Goodwill5 6045 508 Intangible assets5 3755 154 Property, plant and equipment1 3331 403 Long-term financial assets360370 Long-term restricted cash180181 Other non-current assets1 7181 926 Deferred tax assets424395 NON-CURRENT ASSETS14 99214 936 Inventories428290 Trade receivables17 81416 323 Sundry debtors1 7011 270 Cash and cash equivalents6 5325 950 Current tax assets299204 CURRENT ASSETS26 77424 037 TOTAL ASSETS41 76638 973 Capital7 1877 187 Premiums9 6829 682 Consolidated reserves-4 655- 3948 Consolidated income, Group share660- 1940 Translation reserves2 2761 979 Shareholder’s equity (attributable to the Group)15 15012 960 Non-controlling interests99 SHAREHOLDER’S EQUITY15 15912 969 Long-term financial debt2 9302 550 Long-term provisions677670 Deferred tax liabilities578529 Other non-current liabilities754787 NON-CURRENT LIABILITIES4 9384 536 Short-term provisions9618 Short-term financial debt2 3321 815 Current tax liabilities3872 Suppliers3 9622 776 Tax and social security liabilities4 3164 907 Other creditors10 92611 879 CURRENT LIABILITIES21 66921 468 TOTAL LIABILITIES41 76638 973 STATEMENT OF NET CASH FLOWS 30 june 201630 june 2017 (in € thousand)6 months6 months Consolidated net income (including non-controlling interests)- 2 105- 1940 +/- Depreciation, amortisation and provisions (except on current assets) 1 9291 764 +/- Impairment losses – Long term assets +/- Income and expense linked to stock options and similar6442 -/+ Other income and expense -/+ Gains and losses on disposals12 Cash flow after cost of net financial debt and tax -112-132 + Cost of net financial debt8232 +/- Tax expense (including deferred taxes)90246 Cash flow before cost of net financial debt and tax (A)60146 - Tax paid (B)-189- 247 +/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) 1 8612 447 = NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C)1 7322 345 - Cash outflow for acquisitions of property, plant and equipment and intangible assets-1 733- 1 764 + Cash from disposals of property, plant and equipment and intangible assets176 +/- Impact of changes of scope +/- Change in loans and advances made51-72 = NET CASH FLOW FROM INVESTMENT ACTIVITIES (E)-1 682- 1 761 -/+ Repurchase and resale of treasury shares2-9 + Cash from new borrowings300423 - Loan repayments (including finance leases)-480-649 - Net financial interest paid (including finance leases)-72-24 +/- Other cash flows from financing activities-140-712 = NET CASH FLOW FROM FINANCING ACTIVITIES (F)-390-971 +/- Impact of changes in exchanges rates (G)-60- 225 = CHANGE IN NET CASH POSITION (D + E + F + G)-399-612 Cash at end of period Cash and cash equivalents – Bank overdrafts3 9175 701 Cash at opening Cash and cash equivalents – Bank overdrafts4 3176 313
Continued Growth in First Quarter 2017
(Unaudited) In € millions Q1 2016 Q1 2017 Change Licences 2.5 2.7 +8% Maintenance - Support 3.7 4.0 +7% Total Software Revenues 6.3 6.7 +7% Services 1.8 2.2 +20% Hardware 2.0 2.0 - Total revenues for the quarter 10.1 10.9 +8% Commercial Gross Margin for the quarter 8.4 9.2 +10% Commercial Gross Margin rate 84% 85% DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, posted consolidated revenues (unaudited) of €10.9 million for the first quarter of 2017, up 8% from Q1-2016 revenues. Growth was fueled by the two key revenue streams, software revenues (+7%) and Services (+20%). Within software revenues, license sales were up 8% at €2.7 million, as the new version of Galaxy of Dalet’s end to end software solution continued to score strong wins. The installed base thus grows from quarter to quarter, feeding recurring support revenues which were up 7% for the quarter at €4.0 million. Service revenues were up 20% at €2.2 million, due to the large number of projects involving deployment and integration currently underway. Hardware resale, which is a non strategic business for Dalet, remained stable at €2.0 million. The commercial gross margin (defined as sales minus cost of goods and third-party services resold) stood at €9.2 million or 85% of revenues over the first quarter of 2017 as against 84% for the same period in 2016 due to the more favorable sales mix. Broken down by geographic region, revenues for Europe have resumed a positive growth trend, with revenues up 11% at €4.9 million. The Group continued its development in the Americas, its second largest contributor, with a 4% growth (€4.0 million). Asia-Pacific is the only area where revenues decreased over the quarter (-2% at €1.2 million) due to an unfavorable base effect related to last year’s first quarter where revenues were up +106%. Revenues in Africa and the Middle East more than doubled at €0.8 million revenues over the quarter, compared to €0.3 million for the same period last year. Outlook: confirmation of targets for continued growth and improved operating margins DALET’s activity is overall in line with its business plan after this first quarter, thus allowing Dalet to confirm its targets for 2017 of both continued revenue growth and of a current operating margin of 4 to 5%. Dalet continues enriching its product portfolio and feature set, and just released its new Orchestration module, that aims at automating configurable processes for the media production supply chain, combining system services and customized user tasks. Delivered with a full Report Center, the solution brings Business Intelligence to the organization, allowing users at various levels to monitor and analyze key indicators about their operations. This new offering allows Dalet to promote its solutions for enterprise-wide management to more senior executives, particularly at large media companies where more strategic and fully integrated business solutions are increasingly important. It was very well received at the recent NAB show in Las Vegas from April 22 to 27st. Next publication Q2-2017 revenues on 26 July 2017 after the close of trading About Dalet Digital Media Systems Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards. Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA, WDR), commercial networks and operators (Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., SiriusXM) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA). Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit www.dalet.com Contacts Actus Finance & Communication : Investors: Guillaume Le Floch / Théo Martin +33 1 53 67 36 36 Press-Media: Vivien Ferran +33 1 53 67 36 34
9 Months Business Activity 2016
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its third quarter and for the nine-month period ended September 30, 2016. Third quarter: commercial gross profit +9% (Unaudited) In € millionsQ3 2015Q3 2016Change Licenses3.13.1= Maintenance - Support4.03.9-2% Total Software Revenues7.17.0-2% Services2.02.7+36% Hardware3.22.9-9% Total revenues for the quarter12.312.6+2% Commercial Gross Profit 9.410.2+9% Third quarter revenues were up 2% at €12.6 million. Revenue growth resulted from an increase in service revenues, due to a significant number of system installations over the period. Overall software revenues (comprising licenses and support revenues) were stable compared to the same period last year. Hardware resale, which is a low margin business, continued its decrease, at -9%. Due to this more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +9% at €10.2 million. Nine months revenues (Unaudited) In € millions9 MONTHS 20159 MONTHS 2016Change Licenses8.59.0+6% Maintenance - Support10.811.5+7% Total Software Revenues19.320.5+7% Services5.96.9+17% Hardware8.96.2-30% Total revenues 34.233.5-2% Commercial Gross Profit26.728.4+6% DALET’s activity is overall in line with its business plan after these first nine months. The increase in software revenues (+7%) and services (+17%) make up for the expected decrease in hardware resale, a non strategic business for Dalet, which included in 2015 a one-off exceptionally large sale. Dalet’s software solutions continue to score strong wins with leading broadcasters and content producers, as illustrated by the recent order from Euronews, which should contribute to revenues for the fourth quarter of 2016 and first half of 2017. Broken down by geographic region, and for the nine months period, Europe remains the largest zone with revenues at €15.1 million (-9% due to the unfavorable base effect linked to the low-margin hardware sales in 2015). The Asia Pacific region performed well, with revenues up 25% over the period at €4.7 million. Revenues for the Americas were stable at €12.1 million. Revenues for Africa and the Middle East were stable at €1.6 million. Commercial Gross Profit for the 9 months period increased by 6% at €28.4 million. The resulting Commercial Gross Margin was 85% up from 78% for the same period in 2015. Perspectives Backed by an order book on September 30 2016 with more than €13 million to be invoiced in Q4 2016, Dalet expects to meet its main goal for 2016 of continued growth of its commercial gross profit. This should also lead to a progressive improvement of its operating margins, a first step towards its objective of a current operating margin of 4 to 5% by 2017. Next publication Full year 2016 revenues on 22 February 2017 after the close of trading About Dalet Digital Media Systems Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards. Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA, WDR), commercial networks and operators (Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., Sirius XM Radio) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA). Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit www.dalet.com Contacts Actus Finance & Communication Investors: Guillaume Le Floch: 01 53 67 36 70 Morgane Le Mellay: 01 53 67 36 75 Press-Media: Vivien Ferran: 01 53 67 36 34