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

  ATEME company press release from 19/07/2018

  19/07/2018 - 18:00

FIRST HALF 2018 REVENUES: +12% (+18% at constant exchange rates)


  • Revenues growth in line with expectations
  • FIFA World Cup boosting Kyrion sales in H1
  • TITAN software sales expected to boost growth in H2
Revenue in € thousands 2017 2018 Change
First quarter 10,646 9,563 -10%
Second quarter 10,291 13,860 +35%
First half 20,937 23,424 +12%
H1 at constant €/$ exchange rates 20,937 24,767 +18%

 

Revenue in € thousands  H1 2017  H1 2018  Change
EMEA 7,863 8,780 +12%
USA / Canada 6,068 8,696 +43%
Latin America 3,622 3,089 -15%
Asia Pacific 3,384 2,859 -16%
TOTAL 20,937 23,424 +12%

Figures subject to a limited review by ATEME's statutory auditors.

Paris, 19 July 2018 - ATEME (ISIN: FR0011992700), announced revenues of €23.4m for the half year to 30 June 2018, up by 12% on a reported basis and by 18% at constant exchange rates.

Quarter on quarter, revenues were up by 35% (on a reported basis), confirming our expectation of an acceleration in topline growth after a slow start to the year. 

On a geographic basis:

  • EMEA revenues rose by 12% year-on-year to €8,780K, confirming the return to growth in this region since the second half of 2017 with the strengthening of our presence in selected key countries;
  • The USA/Canada region delivered revenues of €8,696K, up by 43% (56% at constant currency), confirming the strong growth potential of the region;
  • Latin America and Asia Pacific H1 revenues declined by 15% and 16% to €3,089K and €2,859K respectively, reflecting predominantly the challenging base effect in the previous year (revenues up by 147% and 175% respectively in H1 2017).


Looking ahead

The exceptional preponderance of lower-margin Kyrion sales in the revenues mix together with a particularly large hardware component in a TITAN deal in the first half of 2018 are expected to weigh on the operating margin for the period.

At the same time, we continued to execute on our investment plan with the consequence that the operating margin is expected in negative territory for H1 2018.

The focus of the organization remains on ramping up the deployment of TITAN to service providers and content providers for their OTT delivery. Based on the identified potential, we are confident in the attraction of TITAN in the second half, and hence our ability to achieve our revenues targets (above 20 % at constant currency and perimeter). While our objective of an improvement in margin remains achievable in the current year, the likely outcome of H1 makes it more challenging.


ATEME President, Michel Artières, said: “Second quarter revenues were in line with expectations of an improvement compared with the performance of the first quarter. In particular we are delighted by the role played by ATEME as a key broadcast partner during the FIFA World Cup. Looking to the rest of the year, we have a very solid pipeline of predominantly large software opportunities, and I am confident that the second half will see a strong rebound in margins and profitability."



Next publication:

Sept. 27, 2018: 2018 Half-Year Results



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 forums, 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 the AV1 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.