Regulated Information

• Revenues growth in line with expectations
• FIFA World Cup boosting Kyrion sales in H1
• TITAN software sales expected to boost growth in H2

Figures subject to a limited review by ATEME's statutory auditors.

Paris, 19 July 2018 - ATEME (ISIN: FR0011992700), announced revenues of €23.4m for the half year to 30 June 2018, up by 12% on a reported basis and by 18% at constant exchange rates.

Quarter on quarter, revenues were up by 35% (on a reported basis), confirming our expectation of an acceleration in topline growth after a slow start to the year. 

On a geographic basis:

• EMEA revenues rose by 12% year-on-year to €8,780K, confirming the return to growth in this region since the second half of 2017 with the strengthening of our presence in selected key countries;
• The USA/Canada region delivered revenues of €8,696K, up by 43% (56% at constant currency), confirming the strong growth potential of the region;
• Latin America and Asia Pacific H1 revenues declined by 15% and 16% to €3,089K and €2,859K respectively, reflecting predominantly the challenging base effect in the previous year (revenues up by 147% and 175% respectively in H1 2017).

Looking ahead

The exceptional preponderance of lower-margin Kyrion sales in the revenues mix together with a particularly large hardware component in a TITAN deal in the first half of 2018 are expected to weigh on the operating margin for the period.

At the same time, we continued to execute on our investment plan with the consequence that the operating margin is expected in negative territory for H1 2018.

The focus of the organization remains on ramping up the deployment of TITAN to service providers and content providers for their OTT delivery. Based on the identified potential, we are confident in the attraction of TITAN in the second half, and hence our ability to achieve our revenues targets (above 20 % at constant currency and perimeter). While our objective of an improvement in margin remains achievable in the current year, the likely outcome of H1 makes it more challenging.

ATEME President, Michel Artières, said: “Second quarter revenues were in line with expectations of an improvement compared with the performance of the first quarter. In particular we are delighted by the role played by ATEME as a key broadcast partner during the FIFA World Cup. Looking to the rest of the year, we have a very solid pipeline of predominantly large software opportunities, and I am confident that the second half will see a strong rebound in margins and profitability."

Next publication:

Sept. 27, 2018: 2018 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 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 2017 ATEME served close to 350 clients worldwide, generated 30% of year on year growth with revenues of €48.6 million, 91% of which was from overseas, and 8% net profit.

Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: B
 

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