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  DALET company press release from 14/05/2018

  14/05/2018 - 19:25

CONTINUED GROWTH IN FIRST QUARTER 2018 - REVENUES: +5% (+12% at constant exchange rate) - COMMERCIAL GROSS MARGIN: +7%


Paris, 14 May 2018

(Unaudited) In € millions Q1 2017 Q1 2018 Change
Licences 2.7 2.9 +5%
Maintenance - Support 4.0 4.2 +4%
Total Software Revenues 6.7 7.0 +4%
Services 2.2 2.4 +12%
Hardware 2.0 2.1 +2%
Total revenues for the quarter 10.9 11.5 +5%
       
Commercial Gross Margin for the quarter 9.2 9.8 +7%
Commercial Gross Margin rate 85% 86%  

 

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 €11.5 million for the first quarter of 2018, up 5% from Q1-2017 revenues (+12% at constant exchange rate[1]).

Growth fueled by new and supplemental business in Americas despite adverse currency impact

Revenues in the Americas zone stood at €4.7 million, up 17% (at current exchange rates), despite the adverse impact of the euro to dollar exchange variations. Revenues for Europe have resumed a positive growth trend, with revenues up 5% at €5.2 million. Asia-Pacific and Africa-Middle East contributed respectively for €1.2 million (-5%) and €0.5 million (-37%) to consolidated revenues.

In terms of sales mix, software revenues (comprising licenses and support revenues) was up by 4% at €7.0 million. Within software revenues, license sales were up 5% at €2.9 million, as Dalet's Galaxy 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 4% for the quarter at €4.2 million.

Overall revenues were bolstered by a 12% increase in Service revenues (integration, configuration and training professional services) at €2.4 million. Hardware resale, which is a non-strategic business for Dalet, increased slightly at €2.1 million (+2%).

The commercial gross margin (defined as sales minus cost of goods and third-party services resold) was up by 7% at €9.8 million or 86% of revenues over the first quarter of 2018, as against 85% for the same period in 2017 due to the more favorable sales mix.

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 2018 of high single-digit revenue growth and of a current operating margin of 5 to 6%.

Next publication

Q2-2018 revenues on 23 July 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, 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 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

 

[1] Calculated by converting the first quarter revenues of the current fiscal year at the average exchange rate for the first quarter of the previous year.