EIGHTH CONSECUTIVE YEAR OF GROWTH - 2016 REVENUES: EUR 48,2 MILLION - COMMERCIAL GROSS PROFIT: +5%

Paris, 22 February 2017

EIGHTH CONSECUTIVE YEAR OF GROWTH

 2016 REVENUES: €48,2 MILLION

COMMERCIAL GROSS PROFIT: +5%

(Unaudited) In € millions
2015
2016
Change


Licenses
13.4
13.3
-1%


Maintenance - Support
14.9
16.0
+7%


Total Software Revenues
28.3
29.3
+3%


Services
9.2
10.1
+10%


Hardware
10.0
8.8
-12%


Total revenues
47.5
48.2
+2%


Commercial Gross Profit
39.1
41.2
+5%

DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today consolidated revenues (unaudited) for financial year 2016.

Fourth quarter: +11% revenue growth

Fourth quarter revenues were up 11% at €14.7 million, leading to Dalet's eighth consecutive year of growth in 2016 with consolidated revenues up 2% at €48.2 million.

The sales mix improved with Software revenues and services revenues up 3% and 10% respectively, making up for the decrease in hardware resale, a low margin, non-strategic business for Dalet (2015 revenues included a one-off exceptionally large hardware sale in Europe).

Broken down by geographic region, revenues for Europe at €21.1 million (-6% given the impact of the decrease of hardware resale) contributed 43.6% of consolidated 2016 revenues. The other 3 zones drove the revenue growth, with a very good performance in the Asia Pacific region (+24%). Activity in the Americas was slightly up by 2%. Revenues for Africa and the Middle East were €2.2 million, a €0.6 million increase with respect to the previous year.

Due to the more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +5% at €41.2 million, a higher level of growth than revenues.

Expected improvement in operating margins

The improvement in commercial gross margin should allow Dalet to meet its main goal for 2016 of growth of its current operating income, an important step towards its objective of a current operating margin of 4 to 5% in 2017.

Perspectives

Order intake was good at the end of 2016, in particular with a large contract worth several million dollars in North America. Dalet's order book on January 1^st 2017 stood at €36 million, stable with respect to the previous year. Backed as well by a strong pipeline of opportunities, boosted by the potential migration from existing customers to the new version Dalet Galaxy, Dalet expects continued growth in 2017, in particular for the Software revenues and professional services activities.

Next publication

2016 yearly results on 25 April 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, FMM, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, eTV, MBC Dubai, MediaCorp, Mediaset, Orange, Time Warner Cable, Warner Bros., Sirius XM Radio) 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: Guillaume Le Floch 01 53 67 36 70

Press-Media: Vivien Ferran 01 53 67 36 34

Source: Actusnews