FIRST-HALF REVENUE UP 7.5% AT €5.9 MILLION
StreamWIDE (FR0010528059 – ALSTW), the specialist in next generation, value-added telephony solutions for telecom carriers, announces a 7.5% increase in revenue compared with the first half of 2012. Revenue thus totaled €5.9 million.
Increase in revenue
Group revenue increased by €0.4 million over the first half of 2013. All of the Group’s structural revenue categories increased over the period. Only third-party sales slipped back, because of a negative base effect vis-à-vis the first half of 2012, when significant third-party license sales were recorded with a French client.
License sales improved (+17%), notably following 2 major orders (one in France and the other in the UK) received at the end of 2012 and deployed during the first half of 2013. These 2 orders concerned voice-messaging systems.
Maintenance revenue continued to record structural growth (+25%) as a result of ever-increasing installed bases in terms of both the number of platforms and the volumes generated per platform (sizeable impact of the swap carried out with a French client in 2012). Furthermore, with some guarantee periods reaching expiration, new maintenance flows on platforms already in production are also being taken into account compared with previous periods. This trend should continue in coming months.
Service revenue was up 17% over the period, although the growth in terms of absolute value remained limited (+€0.1 million). This increase mainly came from clients in the UK and the Americas, where services associated with capacity extensions, installations or software updates were delivered.
The third-party sales recorded over the first half of 2013 essentially concerned IT equipment acquired and then sold on to a North American client, within the framework of the deployment of a prepaid platform.
The split in revenue between “France” and “Export” was more balanced over the period, compared with the end of 2012. This was due to considerable license sales in France over the first half of 2013 on the one hand, and by a major contract recorded in South America in the second half of 2012, which significantly impacted and doped “Export” revenue in 2012, on the other.
The number of clients increased from 89 to 98 over the last six months, reflecting the Group’s ability, in a difficult economic and competitive context, to continually gain market share.
Although the first half of this year was satisfactory in terms of revenue, few significant orders were recorded, notably over the second quarter of 2013, which will subsequently affect our forecasts for the second half of the year. The current global economic context is causing telecom operators to be increasingly cautious, thus extending the sales cycle. This fact, along with a negative base effect for the second half of 2013 compared with the same half of 2012 (H2 2012 saw a sharp upturn in revenue, notably as a result of the sizeable South American contract, non recurrent by nature), should weigh on second half revenue and thus on 2013 annual revenue.
Furthermore, the substantial investments and efforts carried out by the Group in recent months regarding the development of the “SmartMS™” product are now enabling it to record much interest, just months after this new product was first presented. Although no firm orders have yet been received, negatively impacting the Group’s operating margin, the end of 2013 could see the first revenue associated with this innovative offer with substantial value added.
Within a difficult economic context resulting in a slowdown in sales activity since the second quarter of 2013, the Group must be cautious regarding its annual revenue trend in 2013 compared with last year. However, major and significant projects are currently being discussed and/or negotiated. Their successful conclusion in the next few months could allow the Group to foresee a further substantial increase in its revenue in 2014. The growth driver that “SmartMS™” potentially represents could also further strengthen this trend.
Next financial press release: H1 2013 results on September 23, 2013