Dalet 2015 Revenue Increases 13%

Posted by Josh Stinehour
Feb 26 2016

Dalet, a provider of software solutions for the creation, management and distribution of multimedia content, announced 2015 revenues of €47.4 million, an increase of 13% versus 2014 revenues of €42.1m. Dalet_Logo_New

On a pro forma basis, when including a full 12 months of the revenue from the acquisition of Amberfin in the 2014 revenue result (as opposed to 9 months), then revenue for 2015 increased 10% over the 2014 pro forma revenues.

Gross margin for the full year 2015 were 82%, down from 84% in 2014.  Management attributed the decline in gross margin to a larger component of hardware sales.

Based on the level of gross margins, Dalet’s operating profit is close to break-even for the year before including non-recurring items.

On a geographic basis:

  • Revenue in Europe remained the largest geographic component at €22.5m in 2015, up by 4.6% versus the full year 2014. Europe represented 47.5% of total revenue for the year, versus 50.1% in 2014.
  • Revenues from the Americas were €18.0m, or 37.9% of total revenue for the year, up from 33% in 2014. The 38% growth in 2015 was positively impacted by foreign currency gains of €2.8 million (approximately 68% of the total gain).
  • 2015 revenue from the Middle East and Africa (MEA) was €1.5m, down 33% versus 2014. The MEA region represented 3.2% of revenue in 2015, down from 6.7% in 2014.
  • APAC revenue in 2015 was €5.4m, up 11% versus the previous year. APAC revenue was 11% of total revenue in 2015, up from 10% in 2014. Management attributed to the increase in revenues to the initial benefits of recent commercial investments in the region.

 

Revenue breakdown:

  • Software license revenue was €13.8m, down 3% versus the previous year on a pro forma basis. License revenue represented 28.2% of total revenue in 2015, compared to 32.0% in 2014
  • Maintenance support was €14.9m, up 26% versus the previous year. Maintenance revenue represented 31.4% of total revenue in 2015, compared to 27.3% in 2014. Management attributed the increase in maintenance-support contracts to the increase in licenses sales in 2014.
  • Services revenue was €9.2m, down 4% versus the previous year. Services revenue was 19.4% of total revenue in 2015, versus 22.2% in 2014
  • Hardware revenue was €10.0m, up 27% versus 2014. Hardware revenue represented 21% of total revenue in 2015, versus 18.3% in 2014. The growth in hardware sales (such as storage, servers) was principally the result of a large broadcast contract where Dalet was responsible for the entire infrastructure.

 

Outlook:

In the earnings release, Dalet highlighted its past seven years of consecutive revenue growth. The revenue chart below is from the Dalet release.

DaletRevenues20152

Management then expressed optimism for continued growth in 2016 based on the size of the order book on January 1, 2016 (€36 million), increases in support contracts, and market acceptance of its software solutions.

 

 

Related Content: 

Press Release: Dalet 2015 Financial Results

 

 

© Devoncroft Partners 2009-2016. All Rights Reserved.

 

 

Comments are closed.

%d bloggers like this: