GAINS IN COMMERCIAL GROSS MARGIN
FLEX MEDIA PLATFORM ACQUISITION
|(Unaudited) In € millions||H1 2018||H1 2019||Change|
|Maintenance - Support||8.6||9.8||+14%|
|Total Software Revenues||15.6||15.6||-|
|Total revenues for the semester||25.2||24.6||-2%|
|Total Commercial Gross Margin for the semester||22.2||23.0||+3.5%|
|Commercial Gross Margin rate||88%||93%||+5 pts|
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 the first half-year ended June 30, 2019.
Consolidated revenues for the semester were slightly down (-2%) at €24.6 million, compared to the same period last year. This decrease is due primarily to declining hardware resale, which is a low margin, non-strategic and volatile revenue stream. Excluding hardware resale, revenues were up close to 6%.
The commercial gross margin (defined as sales minus cost of goods and third-party services resold) reflects the sales mix and is up by 3.5% at €23 million.
Strong growth in service revenues
Software revenues (comprising licenses and support revenues) were stable over the first six months of the year at €15.6 million, the increase in support and maintenance (+14%) balanced the decrease in licenses (-17.5%). License revenues had an unfavorable base effect related to last year's first semester where they were up +21%. Service revenues (integration, configuration and training professional services) continued progressing significantly, up 22% compared to last year's first half. Hardware resale, was down by 46% at €2.1 million. The resulting commercial gross margin rate reached 93%.
Strong growth in the Americas, slowdown in EMEA
Broken down by geographic region, revenues for the Americas continued posting healthy growth at €11.1 million, up 14%. EMEA revenues were down by 15% at €10.4 million. Asia Pacific sales slowed slightly (-4%) at €3.1 million after a dynamic first quarter.
Acquisition of Ooyala Flex Media Platform
Subsequent to the end of the first half of the year, DALET announced the acquisition of the assets of Ooyala (Ooyala Flex Media platform) for €4.3 million, including €1.7 million in cash and the balance in existing and new shares, representing a dilution of approximately 5%. Thanks to this operation, DALET expands its offering and market reach with a SaaS and subscription-based Media Asset Management solution, in order to win new customers with a real demand for rapidly deployable media management such as telecom operators, leagues and sports teams or corporate customers. DALET is also accelerating its transition to recurring revenue models as a result of the Ooyola installed base of nearly 50 customers, more than half of which are in subscription or SaaS mode.
This customer base generates annual recurring subscription, SaaS and maintenance revenues of €3.9 million on an ongoing basis. In addition, there is a backlog of €2.2 million in professional services and perpetual licenses to be invoiced over the next twelve months.
2019 adjusted Outlook
The acquisition of the Ooyala Flex Media Platform will enable DALET to strengthen its revenue and margin growth momentum. The integration of Ooyala's teams is in progress. Synergies and cost optimization measures will be implemented in the near future to bring Ooyala's business to breakeven, while maintaining its growth momentum. DALET will communicate more precisely on its post-acquisition objectives with the release of its half-yearly results in September.
Full financial results for the first semester of 2019 on 24 September 2019 after the close of trading
About Dalet Digital Media Systems
Dalet solutions and services enable media organisations to create, manage and distribute content faster and more efficiently, fully maximising the value of assets. Based on an agile foundation, Dalet offers rich collaborative tools empowering end-to-end workflows for news, sports, program preparation, post-production, archives and enterprise content management, radio, education, governments and institutions.
Dalet platforms are scalable and modular. They offer targeted applications with key capabilities to address critical functions of small to large media operations - such as planning, workflow orchestration, ingest, cataloguing, editing, chat & notifications, transcoding, play out automation, multi-platform distribution and analytics.
Dalet solutions and services are used around the world at hundreds of content producers and distributors, including public broadcasters (BBC, CBC, France TV, RAI, RFI, Russia Today, RT Malaysia, SBS Australia, VOA), commercial networks and operators (Canal+, FOX, MBC Dubai, Mediacorp, Mediaset, Orange, Charter Spectrum, Warner Bros, Sirius XM Radio) and government organisations (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
Actus Finance & Communication : Investors: Theo Martin +33 1 53 67 36 75 Press-Media: Vivien Ferran +33 1 53 67 36 34