PARIS, July 26, 2001 (PRIMEZONE) -- SYSTRAN (Reuters: SYTN.LN, Euroclear Paris code : 7729, SYTN: Paris Stock Exchange) today announced its consolidated results for the 1st semester 2001. They reflect a strong increase in sales to businesses in spite of an economic slowdown in the Internet industry, especially in the USA, which has had a negative impact on 1st semester revenue and profitability.
-- Consolidated revenue remain stable, due to a strong increase in sales of Corporate solutions which offset the slow-down in sales to Portals.
audited and
consolidated 1st semester 1st semester Change
accounts 2001 2000
M FF M Euros M FF M Euros
Sales 28.7 4.37 29.3 4.47 (2.0%)
Operating income (2.0) (0.30) 4.7 0.72 (142%)
Operating margin (7%) 13%
Net Income Group
share 1.8 0.27 3.3 0.50 (45.4%)
Net margin 6% 11%
In millions
of French Francs 1st sem. as % 1st sem. as % Change
2001 of total 2000 of total 01/00
Software publishing 9.2 32.1 9.8 33.4 (6%)
Corporate solutions(*) 5.1 17.8 0.9 3.1 +466%
Portal solutions(*) 2.7 9.4 6.1 20.8 (56%)
Development contracts 3.8 13.2 4.8 16.4 21%)
Services to
administrations 7.9 27.5 7.7 26.3 +2%
Consolidated sales 28.7 100% 29.3 100% (2.0%)
(*) also named e-Services
Sales of Corporate solutions to businesses have been multiplied by 5 at 5.1 MFRF, against 0.9 MFRF as at 1st semester 2000. Sales are supported by the strong demand from companies which include progressively multilingual issues in their applications. As of today, e-commerce, technical support, CRM, technological intelligence and Knowledge Management must be processed real-time in several languages. Recently, Autodesk integrated SYSTRAN's technology in its technical support service, available on-line on its website. IDC (International Data Corporation) stressed this major innovation on a recent report available on http://www.systransoft.com/IDC/
Sales of Portal solutions have suffered from the global slowdown representative of this business segment, especially in the USA.
SYSTRAN has carried on Sales & Marketing expenditures in Europe and in the USA, on the segment of Corporate solutions. Expenditures stand at 19.2% of sales during 1st semestre 2001, versus 13.3% during 1er semester 2000.
Research & Develoment was 11.5 % of the current period revenue, versus 9.9% en 2000. A tax credit for research amounting to 2.7 MFRF has been recognized accordingly as of June 30th, 2001.
SYSTRAN achieved the most of the restructuring plan of its services to administrations activities. Related restructuring costs, already accrued during the prior accounting year, are included in extraordinary income during the current interim period.
Due to the current demand for its products along with sales and technical investments incurred during the current period, SYSTRAN expects to perform an increase in sales during the second semester. Management's goal of annual increase in revenue is of 15% for 2001, for a net income in excess of 10% of sales.
About SYSTRAN
SYSTRAN is the leader in automatic translation applications and technologies for more than 30 years, as it developed customized products and services for the European Commission, the US government and corporations.
SYSTRAN's technology can be interfaced at all levels of Internet infrastructures. It allows for broader communication with more than 35 language pairs and 21 specialty domains. Technology is developed in Linux and is available for sale in all Unix flavours and Windows platforms. SYSTRAN continues to develop new systems, among with : Hungarian, Polish, Czech, Swedish, Danish and Finnish.
In 2000, SYSTRAN's sales amounted to 60.7 millions de FF (E 9.3 millions), for an operating margin of 12,2% and a net income of 6,1 millions de FF (E 0,94 millions).
SYSTRAN is headquartered in France with subsidiaries in California and Luxembourg.
SYSTRAN (Euroclear Paris code : 7729) is listed on Euronext Paris, Nouveau Marche.
The full text and tables for this release can be found at the following link: