SYSTRAN
Paris : RAN

July 26, 2012 13:32 ET

SYSTRAN : First Semester 2012 Interim Report

PARIS LA DEFENSE CEDEX, FRANCE--(Marketwire - Jul 26, 2012) - First Semester 2012 Interim Report


* Consolidated Sales of 5,402 KEUR: +2.5%

* Consolidated Current Operating Income : +202 KEUR

* Consolidated Net Income : +295 KEUR

July 27(th), 2012 - SYSTRAN, the leading provider of language translation technologies, today announced its consolidated financial results for the first semester ended June 30(th), 2012.

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 Consolidated and Audited                                     Annual Change
         Accounts         1(st) semester     1(st) semester    2012 / 2011
         (in KEUR)            2012                 2011
---------------------------------------------------------------------------
Sales                        5,402             5,269           +2.5 %
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Current Operating Income       202               242          -16.5 %
(Profit)
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%                              3.7%              4.6%
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Net Income (Loss) -            295              (176)             NA
Group's Share
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%                              5.5%               NA
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SYSTRAN's consolidated sales for the first half of the year amounted to 5,402 KEUR, an increase of 2.5% as compared with 2011.

During the first six months of 2012, the salaries and wages and other expenses increased respectively by 8.6% and 1.3%. The consolidated current operating income amounted to 202 KEUR as compared with 242 KEUR during the first semester of 2011. A 340 KEUR tax credit for research activities was accounted for during the first semester of 2012.

The operating income amounted to 181 KEUR as compared with 16 KEUR during the first semester of 2011. Financial income amounted to 254 KEUR resulting from gains and interests earned on investments. Taxes are attributed to SYSTRAN Software, Inc. Consolidated net income amounted to 295 KEUR versus -176 KEUR in 2011.

Total shareholders' equity amounted to 15.6 million Euros as compared with 15.2 million Euros as of December 31, 2011. The Company's net cash position amounted to 22.6 million Euros at June 30, 2012, as compared with 22.2 million Euros on December 31, 2011. Total group debt amounted to 417 KEUR as of June 30, 2012.

Activities - First semester 2012

Total sales amounted to 5.4 million Euros, an increase of 2.5% as compared with 2011 divided between 2.73 million Euros for Software Publishing and 2.67 million Euros for Professional Services.

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                                   In                In       Annual Change
         In KEUR           2012     %       2011       %       2012 / 2011
                                 of total           of total
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 Software Publishing     2,733    50.6%     3,080    58.5%        -11.3%

 Professional Services   2,669    49.4%     2,189    41.5%        +21.9%
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 Consolidated Sales      5,402    100.0%    5,269    100.0%        +2.5%
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During the first semester of 2012, license sales amounted to 2.73 million Euros and represent 50.6% of total sales. The 11.3% decrease as compared to the first semester 2001 is mainly due to the sales decrease of version 7 Desktop products launched during the first semester of 2011. Server Products sales to enterprises and administrations are steady for the period. However, during the first semester 2012 Yahoo!, one of the 5 top customers of SYSTRAN, has not renewed its annual license.

Professional Services sales totaled to 2.7 million Euros and represent 49.4% of total sales, an increase of 21.9% as compared to 2011. However SYSTRAN Software Inc. has suffered from the decrease of the orders coming from the US Government and backlog orders on June 30, 2012 is much lower as compared to the one of June 30, 2011.

More than half of SYSTRAN sales are in North America. Sales are distributed as follows:

-----------------------------------------+---------------+---------------
  By geographical area of asset location | 1st sem. 2012 | 1st sem. 2011
  (in thousands of euros)                |               |
-----------------------------------------+---------------+---------------
  Europe                                 |         2 287 |         2 150
-----------------------------------------+---------------+---------------
  North America                          |         3 115 |         3 119
-----------------------------------------+---------------+---------------
  Other geographical areas               |               |             0
-----------------------------------------+---------------+---------------
  Total sales                            |         5 402 |         5 269
-----------------------------------------+---------------+---------------

Outlook

In 2012 SYSTRAN plans to reinforce the sales team to develop revenue in all business segments. SYSTRAN will also launch new cloud services to complement its line of products and services for corporate customers.

Taking into account the above mentioned comments and due to the economic environment, sales for the second semester 2012 should be less than the first semester 2012 and the second semester 2011.

Dispute with the European Commission

The Commission has already partially complied with the General Court's decision by paying SYSTRAN the amounts of 5,685,240 Euros on February 9, 2011 and 6,315,760 Euros on March 14, 2011.

However, in spite of the repeated requests from SYSTRAN, the Commission has not paid the remaining liabilities pursuant to the decision of December 16, 2010.

On March 4, 2011, the European Commission brought an appeal before the Court of Justice, against the judgement of the General Court delivered on December 16, 2010. On May 13, 2011, SYSTRAN filed its response. On April 19, 2012 a hearing took place. On July 24, 2012, SYSTRAN has been informed that the Advocate-general would deliver his conclusions on September 27, 2012 instead of September 6, 2012 as previously scheduled.

About SYSTRAN

SYSTRAN is the market leading provider of language translation software products and solutions for the desktop, enterprise and Internet.

Use of SYSTRAN products and solutions enhance multilingual communication and increase user productivity. SYSTRAN delivers real-time language solutions for search, content management, online customer support, intra or intercompany collaboration, and eCommerce.

With the ability to facilitate communication in 52+ language combinations and in 20 vertical domains, SYSTRAN's software is the choice of leading global corporations, portals and public agencies.

SYSTRAN has been pioneering advances in machine translation for over four decades. Its latest achievement, SYSTRAN Hybrid MT, combines the predictability and language consistency of rule-based machine translation with the fluency of statistical MT.

SYSTRAN is headquartered in Paris, France with a North American office located in San Diego, California, USA.

SYSTRAN (Code ISIN FR0004109197, Bloomberg: SYST NM, Reuters: SYTN.LN) is listed on EuroNext Paris, Compartiment C.

For more information, visit www.systransoft.com

Revenue for the third quarter 2012 ending on September 30, 2012 will be announced on November 9, 2012.

This Press Release is available for download at: http://www.systransoft.com/systran/investors/press-releases

Half-Year financial report is available for download at: http://www.systransoft.com/systran/investors/financial-report/half-year

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                                   1(st) semester 2012 1(st) semester 2011
                (In KEUR)                   (6 months)          (6 months)
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Net sales                                        5,402               5,269
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Cost of sales and other external                (1,659)             (1,638)
expenses

Wages and salaries                              (3,620)             (3,333)

Taxes and duties                                  (117)                (99)

Depreciation and amortization (net)               (175)               (173)

Other income / (expenses)                          371                 216
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Current operating income                           202                 242
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Other operating income                              25

Other operating expenses                           (46)               (226)
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Operating income                                   181                  16
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Net cost of debt                                   262                  68

Other financial income

Other financial expenses                            (8)                (19)
--------------------------------------------------------------------------
Net financial income                               254                  49
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Profit before tax                                  435                  65
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Income tax expenses                               (140)               (241)
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Profit from operations                             295                (176)
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Minority interest                                    0                   0
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Net income / (loss) - Group's share                295                (176)
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Earning / (loss) per share
On the basis of the average number of
shares in circulation:

- Number of common shares                    7,816,025           7,816,311

- Euros per share                                 0.04               (0.02)
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SYSTRAN: First Semester 2012 Interim Report: http://hugin.info/141962/R/1629722/522054.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: SYSTRAN via Thomson Reuters ONE [HUG#1629722]

Contact Information

  • Contact

    Dimitris SABATAKAKIS
    Chairman & CEO
    Telephone: +33 (0)1 44 82 49 00
    Fax: +33 (0)1 44 82 49 01
    Email: Email Contact