Earnings Release • Jul 21, 2014
Earnings Release
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Paris, July 21, 2014 – StreamWIDE (FR0010528059 – ALSTW), the specialist in next generation valueadded telephony solutions for telecom carriers, announces a €2.5 million fall in revenue in the first half of 2014, with revenue totaling €3.4 million and breaking down as follows:
| In € thousands | June 30 - 2014 | %CA | June 30 - 2013 | %CA | Δ (€k) | Δ % |
|---|---|---|---|---|---|---|
| TOTAL REVENUE | 3,423 | 5,920 | (2,497) | (42,2%) | ||
| License revenue | 875 | 26% | 2,902 | 49% | (2,027) | (70%) |
| Maintenance revenue | 1,462 | 43% | 1,652 | 28% | (190) | (12%) |
| Service revenue | 877 | 26% | 874 | 15% | 3 | 0% |
| Third-party sales revenue | 209 | 6 % | 492 | 8 % | (283) | (58%) |
| France revenue | 1,343 | 39% | 2,839 | 48% | (1,496) | (53%) |
| Export revenue | 2,080 | 61% | 3,081 | 52% | (1,001) | (32%) |
Operators' investments having been devoted in priority to network infrastructures, to the detriment of investments in services, the sales momentum is being slowed by the sector's current apathy and inertia across every geographical region apart from the United States.
The split in revenue between "France" and "Export" was 39%/61% over the period. French revenue suffered from a negative base effect following the license sales recorded over the first half of 2013. The fall in "Export" revenue was the result of opposing effects, with revenue increasing in the "Americas" zone (+€0.3m) but decreasing elsewhere around the world following the downturn first observed in 2013.
The €2.5m decrease in the Group's revenue in the first half of 2014 was the result of a fall in license revenue (-€2m), due in particular to the platform extensions and replacements that took place in the first half of 2013. Non recurrent by their very nature, such operations were not recorded in the first half of 2014. The pace of extensions is difficult to predict from one period to the next, and the cut-off effects were thus negative at June 30, 2014. These 2013 extensions (in France and the United Kingdom) therefore resulted in a particularly negative base effect of close to €2m. Furthermore, the forex effect (€/USD parity) was also negative over the period (-€0.1m). Moreover, the decrease in license revenue was also a result of the slowdown in activity first observed last summer.
Services remained stable over the period, whilst third-party sales, which only represent a small proportion of total revenue, were down by almost €0.3m.
The number of clients remained stable over the last 6 months, which reflects, within a tough economic and competitive context, the confidence that telecom operators have in the quality and reliability of the Group's products. As soon as telecom operators start to invest in services again, the sales momentum could become positive again for the Group.
There are thus a number of opportunities at the current time, which could allow the Group to record additional major license sales over the second half of 2014.
FY 2013 saw an encouraging first half of the year followed by a more hesitant second half. FY 2014 is likely to see a reversal in this trend. Whilst the first half of 2014 was disappointing in terms of revenue, it did allow the order book to be reconsolidated. Certain opportunities could thus be concluded during the second half of 2014.
The cost structure was considerably optimized over the last two halves in order to adapt it to the new market orientations. The Group's financial situation should thus be able to withstand a decrease in its historical revenue, should that occur.
Within this difficult economic context, development efforts have nevertheless been maintained. At the end of June 2014, the "Team On The Run" corporate instant messaging service was launched in "Software as a Service" (SaaS) mode. It is now available online for all corporate clients via the www.teamontherun.com website, the App store and Google Play. This application and its administration website already offer a reliable and secure ecosystem and solution with comprehensive features. Numerous contacts have been made in a wide range of sectors, all of them very interested in this innovative solution. However, the initial marketing phase should not result in significant revenue in 2014, given that the solution is being made available for free until the end of the year, but prospects are encouraging for 2015.
To counter the decrease in its historical revenue, over recent months the Group has undergone a reorganization. At the same time, the development of instant messaging applications, notably those aimed at the corporate segment, should enable it to establish itself on an emerging market with substantial potential. The second half of 2014 should allow the Group to confirm the appeal of, in particular, "Team on The Run" whilst seizing every marketing opportunity with the intention of maintaining and revitalizing its historical activity.
An established leader for value-added telephony services, StreamWIDE assists worldwide operators and service providers in shaping their telephony multimedia services innovation.
From core network solutions to mobile and web apps, StreamWIDE delivers on-premise or cloud-based, end-to-end, carrier-grade, IP-based VAS solutions in the areas of voice messaging, virtual numbers and telephony for social networks, convergent charging, conferencing, call center services, ringback tones and IVR.
Operating from France, the USA, China, Romania, Tunisia, Austria, Argentina, Indonesia and South Africa, StreamWIDE is listed on Alternext Paris (NYSE Euronext) - FR0010528059 – ALSTW.
For further information go to http://www.streamwide.com, http://www.teamontherun.com or visit our LinkedIn and Twitter pages.
Listed on Alternext Paris, a NYSE Euronext Group market ISIN: FR0010528059 - Ticker: ALSTW StreamWIDE is a Bpifrance "innovative company", is eligible for inclusion in "FCPI" (venture capital trusts dedicated to innovation) and is PEA-PME eligible.
Contacts
StreamWIDE NewCap. Pascal Béglin / Olivier Truelle Financial communication agency CEO / CFO Louis-Victor Delouvrier / Emmanuel Huynh Tel: +33 (0)1 70 08 51 00 Tel: +33 (0)1 44 71 98 53 [email protected] [email protected]
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