Paris, 23 April 2018
CURRENT OPERATING MARGIN 4.7%
INCREASE OF NET CASH
| In € millions | 2016 | 2017 | Change |
| Revenues | 48,2 | 51,1 | +6% |
| Cost of goods and third-party services resold | 7,0 | 6,4 | -8% |
| Commercial gross profit | 41,2 | 44,6 | +8% |
| Commercial gross margin | 85% | 87% | +2pts |
| Other cost of revenues | 14,6 | 15,9 | +9% |
| Gross profit | 26,6 | 28,7 | +8% |
| Gross Margin | 55% | 56% | +1pt |
| Research and development | 11,6 | 12,0 | +3% |
| Selling and marketing | 9,0 | 9,4 | +4% |
| General and administrative | 4,6 | 5,0 | +9% |
| Current operating income | 1,4 | 2,4 | +73% |
| Operating income | 1,3 | 1,9 | +42% |
| Net income, Group share | 0,66 | 0,73 | +10% |
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 2017.
Record revenues, continued improvement of the Gross Margin
Dalet posted in 2017 its ninth consecutive year of growth, with record revenues at €51.1 million, up 6% when compared to 2016. The improved sales mix and a better margin on services contributed to a Gross Profit of €28.7 million, up by 8%.
Current operating margin reaches upper range of guidance
As a result of well-controlled expenses, in particular moderate increase of R&D spending, current operating income climbed to €2.4 million, up 73% as compared to 2016. In percentage, current operating margin for 2017 was 4.7%, in the upper range of the margin objectives defined by the group in its 2016/2017 business plan.
An exceptional provision for €0.6 million was recorded related to the final settlement of a commercial dispute on an old project from 2014. The resulting operating income reached €1.9 million, up 42%. After financial expenses and income tax, including a deferred tax expense (non cash) of €0.3 million, net income was up by 10% at €0.7 million.
Net cash position: €2.2 million
Net cash on 31 December 2017 stands at €2.2 million, up by €0.9 million. Shareholders' equity stood at €15.2 million on 31 December 2017.
Outlook: sustained revenue growth and current operating margin target of 5% to 6% in 2018
Dalet confirms the target of mid to high single digit organic revenue growth in 2018 announced together with the publication of its 2017 revenues.
Dalet's revenue growth will be aided by the enriched feature set of its product portfolio in particular on the new Artificial Intelligence technologies. These offerings are just starting to be released and they were very well received at the recent April NAB show in Las Vegas.
In parallel, the group will continue to realize margin improvements based on the combination of higher software revenues in the sales mix, further gains in service margins, and better distribution of fixed costs across the larger volume of revenue. Dalet's objective for 2018 current operating margin is between 5% and 6%.
Next publication
Q1-2018 revenues on 14 May 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 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), commercial networks and operators (Canal+, Fox, Euronews, MBC Dubai, MediaCorp, Mediaset, 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 75
Press-Media: Vivien Ferran +33 1 53 67 36 34
APPENDIX: DETAILED FINANCIAL INFORMATION 2017
| INCOME STATEMENT BY FUNCTION (in euro thousands) |
2016 | 2017 |
| Revenues | 48 226 | 51 052 |
| Cost of Revenues | -21 627 | -22 307 |
| Gross Profit | 26 598 | 28 744 |
| Research and Development expenses | -11 634 | -11 968 |
| Selling and Marketing expenses | -8 984 | -9 361 |
| General and Administrative expenses | -4 599 | -5 032 |
| Current Operating Income | 1 381 | 2 383 |
| Other operating income and expenses | -76 | -524 |
| Operating Income | 1 305 | 1 859 |
| Financial income and expenses | -425 | -377 |
| Pre-tax income | 880 | 1 482 |
| Income Tax | -220 | -754 |
| Net consolidated income | 660 | 728 |
| Net consolidated income, attributable to Group | 660 | 727 |
| INCOME STATEMENT BY NATURE OF EXPENSE (in euro thousands) |
2016 | 2017 |
| Revenues | 48 226 | 51 052 |
| Cost of Goods and third-party services resold | -7 001 | -6 432 |
| Commercial Gross Profit | 41 225 | 44 620 |
| Commercial Gross Margin | 85,5% | 87,4% |
| Purchases and other external expenses | -12 540 | -13 209 |
| Employee expenses | -23 524 | -24 901 |
| Taxes and duties | -179 | -199 |
| Other operating income and expenses | -56 | 0 |
| EBITDA | 4 926 | 6 311 |
| Depreciation, Amortization and Provisions net of reversals | -3 545 | -3 928 |
| Curent Operating Income | 1 381 | 2 383 |
| BALANCE SHEET (in euro thousands) |
Dec 31 2016 | Dec 31 2017 |
| Goodwill | 5 604 | 5 476 |
| Intangible assets | 5 375 | 5 034 |
| Property, plant and equipment | 1 333 | 1 286 |
| Long-term financial assets | 360 | 349 |
| Long term restricted cash | 180 | 417 |
| Other non-current assets | 1 718 | 2 343 |
| Deferred tax assets | 424 | 58 |
| NON-CURRENT ASSETS | 14 992 | 14 963 |
| Inventories | 428 | 353 |
| Trade receivables | 17 814 | 17 823 |
| Sundry debtors | 1 701 | 1 288 |
| Cash and cash equivalents | 6 532 | 6 528 |
| Current tax assets | 299 | 412 |
| CURRENT ASSETS | 26 774 | 26 404 |
| TOTAL ASSETS | 41 766 | 41 366 |
| Capital | 7 187 | 7 189 |
| Premiums | 9 682 | 9 682 |
| Consolidated reserves | -4 655 | -3 904 |
| Consolidated income | 660 | 727 |
| Translation reserves | 2 276 | 1 495 |
| Shareholder's Equity (attributable to the Group) | 15 150 | 15 189 |
| Non-controlling interests | 9 | 9 |
| SHAREHOLDERS' EQUITY | 15 159 | 15 198 |
| Long term financial debt | 2 930 | 2 550 |
| Long term provisions | 677 | 733 |
| Deferred tax liabilities | 578 | 548 |
| Other non current liabilities | 754 | 811 |
| NON CURRENT LIABILITIES | 4 938 | 4 641 |
| Short-term provisions | 96 | 609 |
| Short-term financial debt | 2 332 | 1 789 |
| Current tax liabilities | 38 | 101 |
| Suppliers | 3 962 | 3 077 |
| Tax and social security liabilities | 4 316 | 4 583 |
| Other creditors | 10 926 | 11 369 |
| CURRENT LIABILITIES | 21 669 | 21 527 |
| TOTAL LIABILITIES | 41 766 | 41 366 |
| STATEMENT OF NET CASH FLOWS | 31 dec 2016 |
31 dec 2017 |
| (in € thousand) | 12 months | 12 months |
| Consolidated net income (including non-controlling interests) | 660 | 728 |
| +/- Depreciation, amortisation and provisions (except on current assets) | 3 841 | 4 397 |
| +/ - Income and expense linked to stock options and similar | 89 | 72 |
| -/+ Gains and losses on disposals | -5 | 6 |
| Cash flow after cost of net financial debt and tax | 4 585 | 5 202 |
| + Cost of net financial debt | 128 | 7 |
| +/- Tax expense (including deferred taxes) | 220 | 754 |
| Cash flow before cost of net financial debt and tax (A) | 4 933 | 5 963 |
| - Tax paid (B) | -563 | - 480 |
| +/- Change in working capital requirement from operating activities (including liabilities for employee benefits) (C) | 769 | - 449 |
| = NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C) | 5 139 | 5 035 |
| - Cash outflow for acquisitions of property, plant and equipment and intangible assets | -3 334 | - 3602 |
| + Cash from disposals of property, plant and equipment and intangible assets | 35 | 83 |
| +/- Change in loans and advances made | 33 | 10 |
| = NET CASH FLOW FROM INVESTMENT ACTIVITIES (E) | -3 265 | - 3 509 |
| -/+ Repurchase and resale of treasury shares | -23 | -1 |
| + Cash from new borrowings | 415 | 1 020 |
| - Loan repayments (including finance leases) | -1 150 | -1 411 |
| - Net financial interest paid (including finance leases) | -112 | 6 |
| +/- Other cash flows from financing activities | 903 | - 727 |
| = NET CASH FLOW FROM financing activities (F) | 34 | -1 114 |
| +/- Impact of changes in exchange rates (G) | 87 | -357 |
| = CHANGE IN NET CASH POSITION (D + E + F + G) | 1 996 | 55 |
| Cash at end of period | ||
| Cash and cash equivalents - Bank overdrafts | 6 313 | 6 367 |
| Cash at opening | ||
| Cash and cash equivalents - Bank overdrafts | 4 317 | 6313 |
