DALET : CONTINUED GROWTH IN FIRST QUARTER 2017 REVENUES: +8% COMMERCIAL GROSS MARGIN: +10%

Paris, 11 May 2017

CONTINUED GROWTH IN FIRST QUARTER 2017

 REVENUES: +8%

COMMERCIAL GROSS MARGIN: +10%

(Unaudited) In € millions
Q1 2016
Q1 2017
Change


Licences
2.5
2.7
+8%


Maintenance - Support
3.7
4.0
+7%


Total Software Revenues
6.3
6.7
+7%


Services
1.8
2.2
+20%


Hardware
2.0
2.0
-


Total revenues for the quarter
10.1
10.9
+8%


 
 
 
 


Commercial Gross Margin for the quarter
8.4
9.2
+10%


Commercial Gross Margin rate
84%
85%
 

DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, posted consolidated revenues (unaudited) of €10.9 million for the first quarter of 2017, up 8% from Q1-2016 revenues. Growth was fueled by the two key revenue streams, software revenues (+7%) and Services (+20%).

Within software revenues, license sales were up 8% at €2.7 million, as the new version of Galaxy of Dalet's end to end software solution continued to score strong wins. The installed base thus grows from quarter to quarter, feeding recurring support revenues which were up 7% for the quarter at €4.0 million.

Service revenues were up 20% at €2.2 million, due to the large number of projects involving deployment and integration currently underway. Hardware resale, which is a non strategic business for Dalet, remained stable at €2.0 million.

The commercial gross margin (defined as sales minus cost of goods and third-party services resold) stood at €9.2 million or 85% of revenues over the first quarter of 2017 as against 84% for the same period in 2016 due to the more favorable sales mix.

Broken down by geographic region, revenues for Europe have resumed a positive growth trend, with revenues up 11% at €4.9 million. The Group continued its development in the Americas, its second largest contributor, with a 4% growth (€4.0 million). Asia-Pacific is the only area where revenues decreased over the quarter (-2% at €1.2 million) due to an unfavorable base effect related to last year's first quarter where revenues were up +106%. Revenues in Africa and the Middle East more than doubled at €0.8 million revenues over the quarter, compared to €0.3 million for the same period last year.

Outlook: confirmation of targets for continued growth and improved operating margins

DALET's activity is overall in line with its business plan after this first quarter, thus allowing Dalet to confirm its targets for 2017 of both continued revenue growth and of a current operating margin of 4 to 5%.

Dalet continues enriching its product portfolio and feature set, and just released its new Orchestration module, that aims at automating configurable processes for the media production supply chain, combining system services and customized user tasks. Delivered with a full Report Center, the solution brings Business Intelligence to the organization, allowing users at various levels to monitor and analyze key indicators about their operations. This new offering allows Dalet to promote its solutions for enterprise-wide management to more senior executives, particularly at large media companies where more strategic and fully integrated business solutions are increasingly important. It was very well received at the recent NAB show in Las Vegas from April 22 to 27^st.

Next publication

Q2-2017 revenues on 26 July 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: Guillaume Le Floch / Théo Martin +33 1 53 67 36 36

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

Source: Actusnews