Actusnews Wire - Professional broadcaster of corporate and regulated information, authorised by the AMF and the CSSF.

  DALET company press release from 23/04/2018

  23/04/2018 - 19:45

2017 YEARLY RESULTS


Paris, 23 April 2018

CURRENT OPERATING MARGIN 4.7%

INCREASE OF NET CASH

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. 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, Euronews, MBC Dubai, MediaCorp, Mediaset, 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 75
Press-Media: Vivien Ferran +33 1 53 67 36 34

APPENDIX: DETAILED FINANCIAL INFORMATION 2017

INCOME STATEMENT BY FUNCTION
(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