Paris, 6 November 2017
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 its third quarter and for the nine-month period ended September 30, 2017.
Third quarter: +10% in license sales
|(Unaudited) In € millions||Q3 2016||Q3 2017||Change|
|Maintenance - Support||3.9||4.2||+8%|
|Total Software Revenues||7.0||7.6||+9%|
|Commercial Gross Profit||10.2||11.2||+9%|
* Commercial Gross Profit is defined as sales minus cost of goods and third-party services resold
Dalet revenues for the third quarter were up 4% at €13.1 million, in spite of a 16% decrease in Hardware resale, which is a low margin, non-strategic business.
Overall software revenues (comprising licenses and support revenues) was up by 9%, with licenses up by 10%, due to a significant number of system installations over the period. Service revenues were up 12% over the same period last year.
Due to this more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by +9% at €11.2 million, resulting in a Commercial Gross Margin of 85%.
Nine months revenues up 7%
|(Unaudited) In € millions||9 MONTHS 2016||9 MONTHS 2017||Change|
|Maintenance - Support||11.5||12.6||+10%|
|Total Software Revenues||20.5||21.8||+7%|
|Commercial Gross Profit||28.4||31.1||+9%|
The strong third quarter results helped boost the revenue results for the first 9 months of 2017 by 7% with all strategic lines of the sales mix showing growth.
The strong sequential increase in license revenues in the third quarter confirms the value that Dalet's software solutions offer to leading broadcasters and content producers who are purchasing our solutions over other competitive products. The installed base keeps growing from quarter to quarter, feeding recurring support revenues which were up 10% for the 9 months period at €12.6 million.
Service revenues were up 17% over the 9 months period at €8.1 million, due to the large number of deployments currently underway.
The commercial gross margin over the 9 months period was up 9%, in line with the company's business plan.
Broken down by geographic region, the Americas shows the strongest growth, with +37% growth for the quarter as compared to the same period last year, and +17% at €14.2 million over the first 9 months of 2017. Dalet reaps the benefits of its commercial investments and gains market share, in part due to the US market's recognition of our technically advanced solutions to further their own innovation. Sales in Europe were down by 4% at €14.5 million over the nine months period, mainly due to the planned decrease in non-strategic hardware resale. Excluding this hardware resale effect, sales in Europe were slightly up by 0.6%. Both Asia Pacific and Africa-Middle East performed well, with growth rates of +14% and +13% respectively since the beginning of the year.
Outlook: confirmation of targets
Backed by a strong order intake in the third quarter, Dalet confirms its targets for 2017 of both continued revenue growth and of a current operating margin of 4 to 5%. The contracts signed in the third quarter should also allow Dalet to show a strong order book for 2018.
Full year 2017 revenues on 19 February 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 the Web, VOD, OTT 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 systems are used around the world by many thousands of individual users at hundreds of TVs, Radios and content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, SBS Australia, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, Mediaset, NBC Universal, Orange, Warner Bros., Sirius XM Radio) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).
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