Earnings Release • Feb 16, 2015
Earnings Release
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Paris, February 16, 2015 – StreamWIDE (FR0010528059 – ALSTW – PEA PME eligible), the specialist in next generation, value-added telephony solutions, announces a €1.5 million decrease in annual revenue to €9.3 million in 2014. It breaks down as follows:
| In € thousands | FY 2014 | %CA | FY 2013 | %CA | Δ (€k) | Δ % |
|---|---|---|---|---|---|---|
| TOTAL REVENUE | 9 270 | 10 800 | -1 530 | -14% | ||
| License revenue | 3 733 | 40% | 5 472 | 51% | -1 739 | -32% |
| Maintenance revenue | 3 427 | 37% | 3 198 | 30% | 229 | 7% |
| Service revenue | 1 758 | 19% | 1 584 | 15% | 174 | 11% |
| Third-party sales revenue | 352 | 4% | 546 | 4% | -194 | -36% |
| France revenue | 2 832 | 31% | 4 102 | 38% | -1 270 | -31% |
| Export revenue | 6 438 | 69% | 6 698 | 62% | -260 | -4% |
The return to buoyant growth in the second half of 2014 (+€1 million to €5.9 million, i.e. +20%) highlights the value added of the Group's longstanding commercial offer. Within a difficult sectorial and economic context, this illustrates the confidence that operators have in the quality, reliability and performances of the Group's technological solutions (voice messaging and prepaid systems).
As a reminder the first half of 2014 saw a significant decrease in revenue (-€2.5 million) following the substantial fall in operators' investments in services that began in early 2013 and continued to have an impact in 2014. This apathy and inertia seen at the beginning of the year are the main factors behind the decrease in annual revenue compared with 2013 (-€1.5 million to €9.3 million, i.e. -14%). This trend was observed in every geographical region apart from the United States, as confirmed by the revenue split between "France" and "Exports" in 2014.
Moreover, revenue in France was affected by the base effect associated with non-recurrent license sales during the first half of 2013 (platform extensions and replacements for a French client). Export revenue remained more or less stable, following some major license sales to an American client during the second half of 2014 that offset the decrease in revenue in other regions such as Asia and EMEA.
Although license sales were down by €1.7 million as a result of the first half's negative base effects discussed above, annual maintenance revenue and services revenue were up €0.2 million each. Thirdparty sales, weak in absolute terms, were down €0.2 million over the period.
The first half of 2014, although disappointing in terms of revenue, did however allow the order book to be reconsolidated, resulting in a return to growth in revenue from the Group's traditional activity from the 2nd half of the year. The start of 2015 is also looking up: a significant voice-messaging market should shortly be concluded with a European operator (a new client), the current buoyant momentum in the United States should continue over coming months and there are also a number of opportunities associated with prepaid systems. These positive prospects, combined with a cost structure that has been adapted to the market's new orientations in recent months, should allow the Company to rapidly confirm an operational breakeven in 2015.
At the same time, the development of new solutions regarding corporate mobile instant messaging has continued, is continuing and will continue. The "Team On The Run" application and its administration website already provide businesses with a reliable and secure solution enabling them to control their own communication tool. Available since last summer, this solution has already been enhanced with numerous high-value-added features: electronic document management support, web chat, synchronized real-time multi-device access, and, a walkie-talkie feature and VoIP (voice over IP). Other "business" features will be added to the application over the coming months to make the solution perfectly suited to companies' current and future requirements.
The appetite for and substantial interest in "Team On The Run" notably resulted, at the end of 2014, in commercial partnerships with some major players in the distribution of B2B telecom solutions. The development of marketing and indirect distribution networks for our solution, in addition to a direct approach, is allowing the Group to apply its differentiating sales and marketing strategy. This twofold approach should allow StreamWIDE to strengthen its commercial presence and to generate its first firm orders over the coming weeks.
The corporate mobile applications market, which is centered around instant, mobile, voice and data communication, is still emerging but has considerable potential. The current numerous opportunities already validate the Group's strategy and its development choices. However, the latter remains cautious regarding the generating of significant revenue in the short term on this new market, and therefore gave itself the means, throughout 2014, to secure its long-term financial structure by stabilizing its traditional revenue.
With its proven resilience ability and solid fundamentals, the Group has major assets and controlled means to now deploy its new innovative solution among companies. The inherent advantages that current mobile devices and technologies represent should rapidly persuade companies to put mobile devices to work and to fully benefit from the value added and advantages offered by "Team On The Run".
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 (Euronext) - FR0010528059 – ALSTW.
For further information go to http://www.streamwide.com, http://www.teamontherun.com or visit our LinkedIn and Twitter pages
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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