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  ATEME company press release from 04/05/2018

  04/05/2018 - 18:00

FIRST QUARTER 2018 REVENUES


  • Revenues of €9.6 million down 2.7% at constant currency (10% reported)
  • ATEME demonstrates innovation leadership at NAB
  • All elements of the financial outlook confirmed
Revenues (€000s) Q1 2017 Q1 2018 Variation
EMEA 3,449 4,438 +29%
USA / Canada 2,477 2,749 +11%
Latin America 3,097 1,267 -59%
Asia Pacific 1,623 1,110 -32%
TOTAL 10,646 9,563 -10%

Q1 figures are unaudited.

Paris, May 4, 2018 - ATEME (ISIN: FR0011992700), the emerging leader in video delivery infrastructure, generated revenues of €9.6 million in the first quarter of 2018, down 10.1% year-on-year and by 2.7% at constant exchange rates.

This reflects the fact that the group's growth strategy is increasingly focused on larger individual orders, creating greater lumpiness in revenues from quarter to quarter.

Among the individual geographies:

  • EMEA revenues rose by 29% year-on-year to €4,438 K, confirming the return to growth in this region since the second half of 2017. The strengthening of our presence in selected key countries is delivering results and the ramp-up of TITAN software deployment with leading European service providers is set to drive growth over the coming quarters;
  • The USA/Canada region delivered revenues of €2,749 K, up by 11% (28 % at constant currency), driven by ongoing robust demand in the region should continue to underpin growth;
  • Asia Pacific revenues stood at €1,110 K, down 32%, reflecting a challenging base effect with a 144% rise in Q1 2017;
  • Similarly, Latin America Q1 revenues declined by 59% to €1,267 K after a 450% rise in Q1 2017.

ATEME Chairman and Chief Executive Officer, Michel Artières, said “First quarter revenues predominantly reflect the timing of certain large individual orders, and should not be extrapolated for FY 2018 as a whole. Strong visibility on the future ramp of operations with existing customers combined with significant opportunities to strengthen our market share mean we are confident in our ability to deliver on all our financial targets.”


Innovation leadership supporting mid-term growth

ATEME's long-term commitment to investment in R&D capabilities enables it to innovate on multiple fronts, and positioning the company as the go-to advisor for service providers and broadcasters rethinking the way they deliver video to end users.

At the NAB show in Las Vegas two weeks ago, ATEME again demonstrated its ability to keep innovating notably with:

- The expansion of the TITAN offering with a JITT (Just-In-Time Transcoding) support, targeting CDN and storage savings via central and edge processing;

- The production-ready TITAN embarking the new, royalty-free AV1 compression standard, the result of cooperation between ATEME and major internet players in the framework of the ‘Alliance for Open Media';

- The World's first demo of BISS-CA, the new European Broadcasting Union (EBU) royalty-free and open specifications for Conditional Access;

- Native hybrid and IP delivery, a key feature of the ATSC 3.0, the new standard for the next generation of the terrestrial digital broadcasting system in the United States and Korea.

In addition, ATEME's technology was also demonstrated on the stands of industry leaders such as Intel and Dolby.


Financial outlook re-iterated

ATEME is targeting compound annual revenue growth above 20% (at constant currency and perimeter) in the next three years. The increase in software sales should continue to have a positive impact on the gross margin. In keeping with the strategy successfully executed in recent years, ATEME will maintain its investments in sales & marketing and R&D resources. Nevertheless, it aims to contain the rise in operating expenses at a lesser rate than revenues, leading to a further improvement in margins.

Financial Calendar:

19 July 2018: 2018 first-half revenues

About ATEME: the emerging leader of video delivery infrastructure, servicing the world greatest content and service providers.

ATEME was founded in 1991 as a design house with a focus on video processing. In the 2000s, ATEME specialized in video compression and shortly afterwards introduced a complete video delivery solution. In 2014 ATEME announced its initial public offering at Euronext Paris.

ATEME has and will continue to transform video delivery. ATEME was the first to market with a 10-bit 4:2:2 solution, the first production ready HEVC & HDR, and recently, the first true video delivery NFV software solution, designed to lead and win the service providers transition to video datacenter. To complement our cutting-edge technology, ATEME has partnered with leaders such as Intel, Apple and Microsoft to create the best in class video delivery solutions.

ATEME is a leading member of forms, and organizations, such as the DVB and SMPTE. ATEME actively participated at the ITU in the standardization of HEVC in 2013. In June 2014 ATEME joined the Alliance for Open Media to help develop an open and royalty-free video codec.

ATEME headquarters are Vélizy-Paris, with worldwide support and R&D offices in Rennes, Denver, Sao-Paulo and Singapore. With a commercial presence in 14 countries, ATEME is 220 employees strong, including 100 of the world finest R&D video experts. In 2017 ATEME served close to 350 clients worldwide, generated 30% of year on year growth with revenues of €48.6 million, 91% of which was from overseas, and 8% net profit.


Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: B

ATEME INVESTOR RELATIONS PRESS RELATIONS
  Michel Artières 
President and CEO
Caroline Lesage
Tel: +33 (0)1 53 67 36 79
ateme@actus.fr
Anne-Catherine Bonjour
Tel: +33 (0)1 53 67 36 93
acbonjour@actus.fr
       

DISCLAIMER

This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning ATEME's assets, activities or shares.

All statements other than historical facts included in this presentation, including without limitations, those regarding ATEMEs' position, business strategy, plans and objectives are forward-looking statements.

The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.

ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.