PARIS, Feb. 06, 2003 (PRIMEZONE) -- Systran announces results:
Sales: +0,7% compared to year-end 2001
+33,6% compared to the 2nd semester 2001
Operating income in the 2nd semester: +15% of sales
Systran SA (Paris:SYTN) (Code Euroclear Paris:7729) today announced consolidated financial results for the year ended December 31, 2002. The company reported revenue of 8,24 ME, compared to revenue of 8,18 ME for the same reporting period in 2001.
2002 Accounts Consolidated and unaudited figures in ME 2nd semester 2002 2002 2001 Change Revenue 5,09 8,24 8,18 +0,7% Operating Income +0,76 (0,77) (1,17) +34,2% % +14,93% (9,17%) (14,30%) Net Income (Group's Share) +0,32 (1,56) (0,53) -195,5% % 6% -18% 6%
The second semester displayed the commercial success of the new version release, 4.0, and the increase of both corporate sales and co-funded projects.
Operating income for the second semester amounts to +0,76 ME, reducing the loss for the year at (0,77) ME, compared with (1,53) ME for the first semester of 2002.
The restructuring costs engaged in 2002 at the cost of 0,83 ME, affected the group's operating income.
The activity in 2002
In Millions
of Euros (ME)
2nd Change
semester as % of 2002 as % of 2001 as % of 2002/
2002 total total total 2001
------ ------- ---- ------- ---- ------- -----
Corporate
Solutions &
Portal
Solutions 1,6 31,6% 3,0 36,6% 2,9 35,4% 3,4%
Software
Publishing 1,7 34,5% 2,8 34,1% 2,5 30,5% 12,0%
Development
Contracts 0,8 14,8% 0,9 11,0% 0,8 9,8% 12,5%
Services to
Admini-
Strations 1,0 19,1% 1,5 18,3% 2 24,4 -25,0%
Consolidated
Revenue 5,1 100 8,24 100 8,18 100 +0,7%
The increase in Corporate Sales compensates the downturn in the Internet Portals business segment. Good renewal rates of corporate licenses constitute recurrent revenue, which demonstrates the overall client adoption of SYSTRAN solutions and products.
The release of SYSTRAN Version 4.0 positively impacts the sales of the Software Publishing segment.
The release of version 4.0 for the entire range of SYSTRAN products increased the sales during second semester.
New Development Contracts
Sales of development contracts grew as a result of 7 new contracts.
Group restructuring and new organization employed
After the closing of the subsidiary Aurora, during the second semester 2002, SYSTRAN continued its restructuring plan by reducing the number of personnel. The restructuring costs have been applied in total in the 2002 accounts.
SYSTRAN's reorganization focused on two business units driven by the market evolution, strongly affected by the decline in Portal Sales and the increase in Corporate Sales.
-- Software Publishing
-- Professional Services
New representation of sales
SYSTRAN shall distinguish four new client profiles for sales in the above noted segments:
-- Home & Small Business (HSB) for software sales through resellers, online sales and direct sales.
-- Corporate for corporate accounts.
-- Administration & Government for the European and US administrations.
-- Co-funded for Co-funded projects.
En millions d'Euros 2002
Realise %
Software Publishing 4,1 50%
HSB 2,7 33%
Corporate 1,3 17%
Professional Services 4,1 50%
Corporate 1,2 15%
Administrations 1,5 18%
Co-Funded 0,9 11%
Professional Services - Aurora 0,5 6%
Total 8,2 100%
2003 Outlook
The evolution of the Corporate market combined with the restructuring plan imposed during 2002, provide an encouraging outlook for 2003 and subsequent years. The ever-growing adoption of translation software by Fortune 500 corporations managing multilingual content will increase the sales of the Corporate business segment.
This segment include the group's backlog of 3,2 ME, of which 1,9 ME is derived from new customers.
An proactive policy for publishing new products and developing new language pairs should allow for growth in the Software Publishing segment.
The new procedures with US distributors and the newly signed partnership with Voila and Wanadoo have already translated into an increase of sales of this activity.
Development contracts are projected to generate a turnover of 2,2 ME en 2003.
In 2003, the Company expects to benefit from the recovery of business and the cost reductions resulting from the restructuring plan enforced in 2002.
ABOUT SYSTRAN
SYSTRAN is the leading provider of the world's most scalable and modular translation architecture. SYSTRAN's expertise spans over 30 years of building customized translation solutions for large corporations, portals, ISPs, governments and public administrations through open and robust architectures
Its core technology powers revolutionary translation solutions for the Internet, PCs and network infrastructures that facilitate communication in 36 language pairs and in 20 specialized domains. SYSTRAN's technology is developed under Linux and runs on all Unix platforms, MacOS X and MS Windows.
SYSTRAN is headquartered in France and has subsidiaries in California and in Luxembourg.
SYSTRAN (Euroclear Paris code : 7729) is listed on Euronext Paris, Nouveau Marche and is a member of Euronext's Next Economy segment. AUREL-LEVEN is the French investment company appointed to trade SYSTRAN's stock on the Market.
CONTACTS
Dimitris Sabatakakis, President & Chief Executive Officer
Telephone: +33 (0) 1 39 34 97 75
Fax: +33 (0) 1 39 89 49 34
Email : sabatakakis@systran.fr
Revenue for the first quarter 2003 will be announced on April 23rd, 2003.
You can download this Press Release at http://www.systransoft.com/Investors/Press.html
CONSOLIDATED INCOME STATEMENT 2002
2002 2001
(000' Euros)
Sales 8 238 8 183
Other revenues 33 15
Operating revenues 8 271 8 198
Purchases and other
external expenses -3 528 -3 891
Taxes and similar expenses -59 -50
Wages and salaries -4 958 -5 137
Gross margin -274 -880
Depreciation and
operating provisions (net) -492 -286
Operating income -766 -1 166
Financial provisions 3
Other financial expenses and income -54 214
Financial income -54 217
Current profit -820 -949
Extraordinary income -834 94
Income taxes 113 344
Net income from
consolidated companies -1 541 -511
Goodwill and amortization -22 -18
Consolidated net income -1 563 -529
Minorities
Net income (Group share) -1 563 -529
Net income per share flowing to Systran Year-End Year-End
2002 2001
On the basis of the average number
of shares in circulation:
- Number of shares (net of treasury shares) 9 833 695 9 833 695
- Euros per share (0,16) (0,05)