- First Half revenues growth in line with full year objectives
- Early success of Multiyear engagement model
- Financial outlook confirmed
|Revenue in € thousands||2018||2019||Change|
|H1 at constant exchange rates||23,236||28,771||+24%|
|Revenue in € thousands||H1 2018||H1 2019||Change|
|USA / Canada||8,506||10,691||+26%|
Data subject to a limited review by ATEME's statutory auditors.
Paris, 18 July 2019 - ATEME (ISIN: FR0011992700), announces revenues of €30.1m for the half year to 30 June 2019, up by 29% on a reported basis and by 24% at constant currency.
Second Quarter revenues amounted to €16.5m, up by 21% reported.
On a geographic basis, all four regions contributed to growth in the First Half:
- EMEA revenues rose by 13% year-on-year to €9,916K;
- The USA/Canada region recorded revenues of €10,691K, up by 26% (18% at constant currency). Revenues are set to grow further thanks to the successful roll-out of multiyear engagements with key customers;
- Latin America and Asia Pacific delivered revenue growth of 76% and 41% respectively (66 % and 34% at constant currency). The combined revenues of €9,473K of these two regions are now approaching the level of EMEA and North America.
While our product mix between hard and software sales has improved compared to the first half of 2018, the proportion of third party products, notably servers sold along with our TITAN software, remains material, thereby limiting the improvement in gross margin for the period.
At the same time, we continue to execute on our investment plan, implying that the operating margin is expected in negative territory in the First Half of 2019.
We remain focused on the execution of our growth strategy notably:
- Developing partnerships with our flagship customers though multi-year engagements. This strategy is starting to deliver, with several contracts expected to close during the Second Half, securing our growth trajectory for 2020 and beyond;
- Expanding to our customer base to pure OTT players, on top of our traditional base of service and content providers already deploying TITAN for both traditional and OTT delivery;
- Launching product innovations to expand our total addressable market, with the upcoming announcement of a new generation playout solution at IBC Amsterdam in September.
ATEME Chairman and Chief Executive, Michel Artières, said: “First Half revenues were in line with our objective of 20% year on year growth. We are gratified to deliver this performance while securing more multi-year contracts. Looking ahead, the consolidation of this growing backlog, as well as a solid pipeline, make us confident in our ability to deliver a strong rebound in margins and return to profitability during the second half and for the year as a whole."
Sept. 26, 2019: 2019 Half-Year Results
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 forums, 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 the AV1 open and royalty-free video codec.
ATEME headquarters are Vélizy-Paris, with worldwide support and R&D offices in Rennes, Denver, Sao-Paulo, Singapore and Sydney. With a commercial presence in 18 countries, ATEME is 250 employees strong, including 100 of the world finest R&D video experts. In 2018 ATEME served close to 400 clients worldwide with revenues of €56.5 million, 93% of which was from overseas.
Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C
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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.
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