- THIRD QUARTER REVENUES UP 4.5%
- NINE MONTH REVENUES UP 25%
- REVENUES OBJECTIVES REVISED DOWN, BUT PROFITABILITY BENEFITING FROM SHIFT TO HIGHER MARGIN SOFTWARE SALES
|Revenue in € thousands||2016||2017||Change|
|Revenue in € thousands||9M 2016||9M 2017||Change|
|USA / Canada||8,180||10,109||+23.6%|
Q3 figures are unaudited. H1 figures underwent a limited review by auditors.
Paris, November 9, 2017 - ATEME (ISIN: FR0011992700), the emerging leader in video delivery infrastructure, generated revenues of €11.1 million for the Third Quarter of 2017, up by 8.4% at constant exchange rates and by 4.5% on a reported basis. This deceleration relative to the first two quarters is related to the timing of a few large orders.
Revenues for the First Nine Months stood at €32.0 million, up by 25.1% on a reported basis and by 25.2% at constant exchange rates, driven notably by a robust performance in Latin America.
Revenues in the EMEA region, representing 36.5% of the group total, were virtually stable;
Revenues rose by 24% in the USA/Canada and by 28% in Asia Pacific;
Revenues in Latin America increased by 171%, thereby contributing to half of the total revenues growth year to date.
The software transition in our industry, which is transferring a portion of the addressable market to standard datacenter server manufacturers, is accelerating. As one of the earliest adopters of a software-based strategy, ATEME is one of the winners from this accelerated transition. This trend has an impact on ATEME's revenue profile since it leads to a decrease in the resale of servers, but an increase in higher-margin software revenues.
We expect revenue growth of just over 20% for the current year, and in consequence, our previous target of 30% CAGR for the period 2017-18 appears more challenging. On the other hand, the acceleration in the shift in product mix described above will have a positive impact on ATEME's margins.
Michel Artières, CEO and President of ATEME, says:
"The ongoing deployment of ATEME solutions by key content and service providers who have adopted ATEME software technology as their standard during the past two years will continue to underpin revenue growth. The commercial momentum is strong, with strong prospects with Tier 1 clients in every region, and in consequence the group expects to deliver a strong Q4. ATEME offers a differentiated software solution which is recognized by the World's largest operators. ATEME is clearly outperforming the market and we are confident in our ability to keep winning market share.”
February 1st, 2018: FY 2017 revenues
About ATEME: the emerging leader of video delivery infrastructure, servicing the world greatest content and service providers.
ATEME was founded in 1991 as a design house with a focus on video processing. In the 2000s, ATEME specialized in video compression and shortly afterwards introduced a complete video delivery solution. In 2014 ATEME announced its initial public offering at Euronext Paris.
ATEME has and will continue to transform video delivery. ATEME was the first to market with a 10-bit 4:2:2 solution, the first production ready HEVC & HDR, and recently, the first true video delivery NFV software solution, designed to lead and win the service providers transition to video datacenter. To complement our cutting-edge technology, ATEME has partnered with leaders such as Intel, Apple and Microsoft to create the best in class video delivery solutions.
ATEME is a leading member of forms, and organizations, such as the DVB and SMPTE. ATEME actively participated at the ITU in the standardization of HEVC in 2013. In June 2014 ATEME joined the Alliance for Open Media to help develop an open and royalty-free video codec.
ATEME headquarters are Vélizy-Paris, with worldwide support and R&D offices in Rennes, Denver, Sao-Paulo and Singapore. With a commercial presence in 14 countries, ATEME is 220 employees strong, including 100 of the world finest R&D video experts. In 2016 ATEME served close to 350 clients worldwide, generated 31% of year on year growth with revenues of €37.5 million, 91% of which was from overseas, and 6% net profit.
Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C
|ATEME||INVESTOR RELATIONS||PRESS RELATIONS|
President and CEO
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This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning ATEME's assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding ATEMEs' position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.
ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
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