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Tags: august 1st, cash position, consolidated sales, exchange rate, income group, interim report, language translation, negative impact, net income, net profit, operating income, semester change, software publishing, translation technologies, us dollar decline,Pages: 4
Language: english
Created: Thu Jul 31 15:52:48 2008
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www.systransoft.com
Leading Provider of Language Translation Technologies
First Semester 2008 Interim Report
· Sales of 3,637 K
· Operating Income of 39 K
August 1st 2008 SYSTRAN, the leading provider of language translation
technologies today announced its consolidated financial results for the first
semester ended June 30th, 2008.
Consolidated and Audited 1st semester 1st semester Annual change
Accounts (in K) 2008 2007 2008 / 2007
Sales 3,637 5,099 - 28.7 %
Operating Income 39 785 - 95.0 %
% + 1.1 % + 15.4 %
Net Income - Group's share -322 525 na
% na + 10.3 %
Consolidated sales for the first half of the year amounted to 3,637 K, a decrease of
28.7 % as compared with the first semester 2007. The US Dollar decline continued to
have a strong negative impact. At a constant exchange rate the consolidated sales
amounted to 3,932 K.
Operating income amounted to 39 K as compared with 785 K in 2007.
Net loss amounted to 322 K as compared with a net profit of 525 K for the six first
months of 2007.
The Company's cash position was 9,344 K on June 30th, 2008, as compared with
10,742 K on December 31st, 2007.
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SYSTRAN, First Semester 2008 Results
Activities - First Semester 2008
1st In 1st In Annual
In K semester % semester % change
2008 of total 2007 of total 2008 / 2007
Software Publishing 2,927 80.5 % 4,017 78.8 % - 27.1 %
Professional Services 710 19.5 % 1,082 21.2 % - 34.4 %
Consolidated Sales 3,637 100.0 % 5,099 100.0 % - 28.7 %
Sales generated from software licenses totaled 2,927 K, a decrease of 27.1 % as
compared with the first semester of 2007. This decrease is the result of a decline in
sales of Desktop Products. For the first semester 2007, Desktop Products benefited
from a successful new version release.
Professional Services sales amounted to 710 K as compared with 1,082 K for the
same period last year, a decrease of 34.4 %. These results reflect fewer orders
received from the US Federal Government during the past quarters. SYSTRAN
Software, Inc. recently renewed its contract with US Federal Government and total
work orders amounted to 1,596 KUSD as compared with 721 KUSD at June 30,
2007.
During the first quarter of 2008 SYSTRAN launched the new version 6 of its Server
Products. This launch occurred at the end of the first quarter and had little impact on
second quarter revenues.
Outlook
SYSTRAN's efforts are now focused on the commercial release of the version 6
Server Products expected to drive revenue growth from Corporate customers.
Development of SYSTRAN's version 7 has commenced. The primary goal of this
version is to improve translation quality with new translation engines.
Sales for the second quarter of 2008 are lower than those in the second quarter of
2007. Growth between the second and first quarters of 2008 is lower than the same
period of 2007. SYSTRAN continues to face a depressed economic environment and
has no visibility on the Euro / US Dollar exchange rate. Because of the combination
of these factors, SYSTRAN currently expects that sales and operating income for the
second half of 2008 will be similar or higher than the first semester of 2008.
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SYSTRAN, First Semester 2008 Results
About SYSTRAN
SYSTRAN is the market leading provider of language translation software products
and solutions for the desktop, enterprise and Internet that facilitate communication in
52 language combinations and in 20 vertical domains. With over three decades of
expertise and research and development, SYSTRAN's software is the choice of
leading global corporations, portals including AltaVistaTM, Yahoo!®, and Microsoft®,
and public agencies like the US Intelligence Community and the European
Commission.
Use of SYSTRAN products and solutions enhance multilingual communication and
increase user productivity and time-savings for B2E, B2B and B2C market segments
as they deliver real-time language solutions for search, content management, online
customer support, intra or inter company collaboration, and eCommerce.
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
Contact
Dimitris SABATAKAKIS, Chairman & CEO
Telephone: +33 (0)1 47 96 86 86 Fax: +33 (0)1 46 98 00 59
Email: sabatakakis@systran.fr
Revenue for the third quarter of 2008 will be announced on November 7th, 2008.
This Press Release is available for download at:
http://www.systran.co.uk/translation/systran/investors/press-releases
Half-Year financial report is available for download at:
http://www.systran.co.uk/translation/systran/investors/financial-report/half-year
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SYSTRAN, First Semester 2008 Results
1st semester 1st semester Year
2008 2007 2007
(In K)
(6 months) (6 months) (12 months)
Net sales 3,637 5,099 8,848
Other operating revenue 0 0
Total revenue from operations 3,637 5,099 8,848
Cost of sales and other external expenses (1,304) (1,710) (2,990)
Taxes and duties (94) (77) (189)
Wages and salaries (2,029) (2,355) (4,419)
Amortization (net) (162) (164) (303)
Other income / (expenses) (4) 25 7
Current operating income 44 819 954
Other operating income / (expenses) (5) (34) (37)
Operating income 39 785 917
Financial income from cash activities (273) 107 (116)
Financing expenses (6) (7) (14)
Net financing cost (279) 100 (130)
Other financing income / expenses (98) (33) (27)
Profit before tax (338) 852 760
Income tax expenses 16 (327) 58
Profit from operations (322) 525 818
Minority interest 0 0 0
Net income / (loss) Group's share (322) 525 818
1st semester 1st semester Year
Earning / (loss) per share 2008 2007 2007
(6 months) (6 months) (12 months)
On the basis of the average number of
shares in circulation:
- Number of common shares 9,541,804 9,712,541 9,683,504
- Euros per share (0.03) 0.05 0.08
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