DALET : 2016 YEARLY RESULTS : CURRENT OPERATING INCOME UP 385%- POSITIVE NET INCOME- STRONG CASH GENERATION- CONFIRMATION OF 2017 OBJECTIVES

Paris, 27 April 2017

2016 YEARLY RESULTS

CURRENT OPERATING income UP 385%

 POSITIVE NET income

STRONG CASH GenEration

Confirmation OF 2017 OBJECTIVES

In € millions
2015
2016
Change


Revenues
47,5
48,2
+2%


Cost of goods and third-party services resold
8,3
7,0
 


Commercial gross profit
39,1
41,2
+5%


Commercial gross margin
82%
85%
 


Other cost of revenues
14,1
14,6
 


Gross profit
25,0
26,6
+6%


Gross Margin
53%
55%
 


Research and development
11,0
11,6
+6%


Selling and marketing
9,0
9,0
-1%


General and administrative
4,6
4,6
-1%


Current operating income
0,3
1,4
+385%


Operating income
(0,1)
1,3
-


Net income, Group share
(0,8)
0,7
+1,5M€

Going forward, Dalet publishes its Income statement by function, so as to be aligned with the presentation generally used by software companies. The income statement by nature of expense is presented as well in the appendix to this press release. 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 2016.

Gross Margin up from 53% to 55%

Dalet posted in 2016 its eighth consecutive year of growth with consolidated revenues up 2% at €48.2 million. The sales mix improved with a larger contribution to the activity from Software revenues and a decrease in hardware resale. This combined with an improved margin on services contributed to a Gross Profit of €26.6 million, up by 6%, with a gross margin increasing from 53% to 55% of revenues.

Fivefold increase in Current Operating Profit

Research and development expenses were up 6%, as the Group makes progress on its technology roadmap and product enhancements. The capitalization of €2.9 million in R&D on the company's balance sheet had no significant impact on income as it was offset by the amortization of R&D expenses in a similar amount. Selling & marketing expenses and general & administrative expenses were stable. As a result, current operating income climbed to €1.4 million from €0.3 million, an almost fivefold increase with respect to 2015. Current operating margin for 2016 was 2.9%, on track with the margin objectives defined by the group. With no significant exceptional expenses, operating income reached €1.3 million. After €0.4 million in financial expenses of which 0.1 million is interest expenses,
and €0.2 million in tax, net income amounted to €0.7 million compared to a loss of €0.8 million in 2015.

Stronger cash position, Positive cashflows

Cashflows from operations amounted to €5.1 million, up 51% from the previous year. Cash on 31 December 2016 increased to €6.5 million, net cash was €1.3 million compared to a net debt of €0.6 million on 31 December 2015. Dalet shareholders' equity stood at €15.2 million on 31 December 2016.

Perspectives

Based on an order book on January 1^st 2017 of €36 million, and on dynamic activity since the beginning of the year, DALET targets in 2017 a 9^th consecutive year of growth. The group will continue setting as its priority the growth of its Software activity and associated professional services, while focusing on improving its service margins. Dalet confirms its objective of a current operating margin objective of 4% to 5% in 2017.

Next publication

Q1-2017 revenues on 11 May 2017 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, WDR), commercial networks and operators (Canal+, FOX, eTV, 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 36

Press-Media: Vivien Ferran +33 1 53 67 36 34

APPENDIX: DETAILED FINANCIAL INFORMATION 2016

INCOME STATEMENT BY FUNCTIN

(in euro thousands)
2015
2016


 
 
 


Revenues
47 463
48 226


Cost of Revenues
-22 485
-21 627


Gross Profit
24 978
26 598


Research and Development expenses
-10 999
-11 634


Selling and Marketing expenses
-9 044
-8 984


General and Administrative expenses
-4 650
-4 599


Current Operating Income
285
1 381


Loss on value-long term assets
-411
 


Other operating income and expenses
 
-76


Operating Income
-125
1 305


Financial income and expenses
-336
-425


Pre-tax income
-461
880


Income Tax
-339
-220


Net consolidated income
-800
660


Net consolidated income, attributable to Group
-800
660

INCOME STATEMENT BY NATURE OF EXPENSE

(in euro thousands)
2015
2016


 
 
 


Revenues
47 463
48 226


Purchases and other external expenses
-20 917
-19 540


Employee expenses
-22 211
-23 524


Taxes and duties
-200
-179


Depreciation and Amortization
-3 620
-3 700


Provisions net of reversals
-62
155


Other income and expenses from operations
-168
-56


Curent Operating Income
285
1 381


Loss on value-long term assets
-411
 


Other operating income and expenses
 
-76


Operating Income
-125
1 305


Income from cash and cash equivalents
19
30


Cost of gross financial debt
-173
-158


Cost of net financial debt
-153
-128


Other financial income and expenses
-182
-297


Pre-tax income
-461
880


Income tax
-339
-220


Net consolidated income
-800
660


Net consolidated income, attributable to Group
-800
660

BALANCE SHEET

(in euro thousands)
Dec 31 2015
Dec 31 2016


 
 
 


Goodwill
6 213
5 604


Intangible assets
5 959
5 375


Property, plant and equipment
1 367
1 333


Long-term financial assets
358
360


Long term restricted cash
325
180


Other non-current assets
1 008
1 718


Deferred tax assets
415
424


NON-CURRENT ASSETS
15 644
14 992


Inventories
247
428


Trade receivables
14 483
17 814


Sundry debtors
1 427
1 701


Cash and cash equivalents
4 335
6 532


Current tax assets
166
299


CURRENT ASSETS
20 658
26 774


TOTAL ASSETS
36 302
41 766


 
 
 


Capital
7 187
7 187


Premiums
9 614
9 682


Consolidated reserves
-3 334
-4 655


Consolidated income
-800
660


Translation reserves
2 528
2 276


Shareholder's Equity (attributable to the Group)
15 194
15 150


Non-controlling interests
8
9


SHAREHOLDERS' EQUITY
15 202
15 159


Long term financial debt
3 724
2 930


Long term provisions
554
677


Deferred tax liabilities
880
578


Other non current liabilities
744
754


NON CURRENT LIABILITIES
5 901
4 938


Short-term provisions
 
96


Short-term financial debt
1 292
2 332


Current tax liabilities
81
38


Suppliers
3 349
3 962


Tax and social security liabilities
4 063
4 316


Other creditors
6 413
10 926


CURRENT LIABILITIES
15 198
21 669


TOTAL LIABILITIES
36 302
41 766

STATEMENT OF NET CASH FLOWS
31 dec 2015

 
31 dec 2016


(in € thousand)
12 months
12 months


Consolidated net income (including non-controlling interests)
-800
660


+/- Depreciation, amortisation and provisions (except on current assets)
3 416
3 841


+/- Impairment losses - Long term assets
411
0


+/ - Income and expense linked to stock options and similar
93
89


-/+ Gains and losses on disposals
-1
-5


Cash flow after cost of net financial debt and tax
3 118
4 585


+ Cost of net financial debt
153
128


+/- Tax expense (including deferred taxes)
339
220


Cash flow before cost of net financial debt and tax (A)
3 611
4 933


- Tax paid (B)
-182
-563


+/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C)
-20
769


= NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C)
3 408
5 139


 
 
 


- Cash outflow for acquisitions of property, plant and equipment and intangible assets
-3 565
-3 334


+ Cash from disposals of property, plant and equipment and intangible assets
178
35


+/- Impact of changes of scope
-257
0


+/- Change in loans and advances made
-3
33


= NET CASH FLOW FROM INVESTMENT ACTIVITIES (E)
-3 647
-3 265


 
 
 


-/+ Repurchase and resale of treasury shares
-56
-23


+ Cash from new borrowings
883
415


- Loan repayments (including finance leases)
-1 052
-1 150


- Net financial interest paid (including finance leases)
-147
-112


+/- Other cash flows from financing activities
156
903


= NET CASH FLOW FROM financing activities (F)
-216
34


 
 
 


+/- Impact of changes in exchange rates (G)
242
87


= CHANGE IN NET CASH POSITION (D + E + F + G)
-212
1 996


 
 
 


Cash at end of period
 
 


Cash and cash equivalents - Bank overdrafts
4 317
6 313


 
 
 


Cash at opening
 
 


Cash and cash equivalents - Bank overdrafts
4 529
4 317

Source: Actusnews