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 1st 2017 of €36 million, and on dynamic activity since the beginning of the year, DALET targets in 2017 a 9th 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 |
