Successfully transitioning towards recurring
subscription and SaaS model
- $44.2 million revenue1
- Recurring revenues up 13% year-over-year2 at $29.5 million (67%
of revenue)
- Strong growth of subscription-based business (ARR x 2.2 in 6
months at $8.5m)
- Core software business down by 6% year-over-year2 impacted by
transition towards recurring subscription and SaaS model and to a
lesser extent COVID-19 pandemic
- Consolidated revenue (IFRS) up 4% year-over-year
- $7.4 million EBITDA3 (17% of revenue)
- Core business EBITDA up 54% year-over-year
- Tight control of expenses to preserve profitability and cash
flow while continuously investing in innovation, marketing and
sales
- $46.5m in cash and cash equivalents; solid financial position
to face the global pandemic situation
- Business outlook
- Due to continuing lack of visibility induced by Covid-19
pandemic, 2020 and 2021 objectives remain suspended
Regulatory News:
Verimatrix (Euronext Paris: VMX), a
global provider of security and analytics solutions that protect
devices, services and applications, is today reporting its IFRS
unaudited4 consolidated results and unaudited adjusted results, for
the six-month period ended June 30, 2020.
(in thousands of US$)
First-half2020 First-half2019
Revenue pro forma
44 170
50 418
EBITDA
7 393
7 229
Revenue pro forma software business
44 170
46 870
EBITDA software business
7 679
4 890
Consolidated revenue (IFRS)
44 170
42 499
Net income (IFRS)
(1 923)
(5 561)
Commenting on these results, Amedeo D’Angelo, chairman and chief
executive officer of Verimatrix, stated: “Verimatrix has continued
to show a strong resilience in the current crisis with a steady
increase of its subscription-based business, leading to a solid
growth of recurring revenues in the business mix, and down the road
a more sustained profitability of its software business. During the
quarter, we closed significant cross-selling and up-selling
customer contracts, combining Verimatrix products with former
Inside Secure application shielding products. The safety and well
being of our employees remain our priority during this pandemic. I
am very proud to see how committed they are. Together with our
partners, they have shown creativity, passion and engagement,
adapting to the situation to better serve our customers worldwide.
Moving forward, the short-term effects of the current crisis on
some of our clients’ spending is clearly offset by the positive
shift towards increased demand for cloud hosted services for
scalable and secure digital contents worldwide. Our company is
ideally positioned to benefit from these new underlying trends,
with its range of expertise and cybersecurity solutions that
protect video content, endpoint devices, software and applications.
With our solid financial and liquidity position, we will continue
to invest selectively to develop our position and expand our
commercial reach, and we remain confident in the growth
opportunities and long-term prospects for our company.”
Financial Results - Key figures
Software business
(adjusted)
Company (adjusted, 2019 pro
forma)
Consolidated IFRS
(in thousands of US$)
H1 2020
H1 2019
H1 2020
H1 2019
H1 2020
H1 2019
Revenue
44 170
46 870
44 170
50 418
44 170
42 499
Gross profit
37 323
38 250
37 037
40 427
36 128
35 476
As a % of revenue
84.5%
81.6%
83.9%
80.2%
81.8%
83.5%
Operating expenses
(31 815)
(35 875)
(31 815)
(35 999)
(33 779)
(42 923)
Operating income
5 508
2 375
5 222
4 428
2 349
(7 447)
As a % of revenue
12.5%
5.1%
11.8%
8.8%
5.3%
-17.5%
Net income/(loss) from continuing operations (i)
-
-
-
-
(1 766)
(9 178)
Net income/(loss) from discontinued operations (ii)
-
-
-
-
(157)
3 617
Net income/(loss) (i) + (ii)
-
-
-
-
(1 923)
(5 561)
EBITDA
7 679
4 890
7 393
7 229
-
-
As a % of revenue
17.4%
10.4%
16.7%
14.3%
-
-
1. Financial results: from revenue to EBITDA – 2020 reported
compared with pro forma for 2019
Q2 2020 and H1 2020 revenue
(in thousands of US$)
Q2-2020
Q2-2019 (IFRS)
Q2-2019 (pro forma
adjusted)
Q2 2020 vs. Q2 2019
IFRS
Q2-2020 vs. Q2-2019 pro
forma adjusted
Software business
24 151
26 624
27 475
-9%
-12%
NFC patent licensing program
-
-
-
-
-
Total
revenue
24 151
26 624
27 475
-9%
-12%
(in thousands of US$)
H1-2020
H1-2019 (IFRS)
H1-2019 (pro forma
adjusted)
H1-2020 vs. H1-2019
IFRS
H1-2020 vs. H1-2019 pro
forma adjusted
Software business
44 170
38 951
46 870
13%
-6%
NFC patent licensing program
-
3 548
3 548
-
-
Total
revenue
44 170
42 499
50 418
4%
-12%
IFRS : 4 months of VMX, Inc in H1 2019 Pro forma adjusted: 6
months of VMX, Inc in H1 2019
Second quarter 2020 revenue
Verimatrix revenue was $24.2 million in the second quarter of
2020. Revenue was down 12% year-over-year on a pro forma basis
(accounting for 6 months on Verimatrix, Inc. business in 2019).
Recurring revenues from royalties, maintenance and subscription fee
were $15.5 million in the second quarter of 2020, representing 64%
of revenue. These recurring revenues grew by 8% year-over-year in
the second quarter of 2020.
During the quarter, the Company continued to make firm progress
in deploying its SaaS and subscription-based offering consistently
with its strategy. The corresponding ARR (Annual Recurring Revenue)
grew from $3.8 million as of December 31, 2019, $6.2 million as of
March 31, 2020 to $8.5 million as of June 30, 2020.
The momentum experienced by Verimatrix is further supported by
the preference of content distributors to off-load their
infrastructure to managed cloud services and subscription model.
This transition provides them budgetary and investment flexibility,
as it moves “Capex” (capital expenditure) to an “Opex” (operating
expense). In the context of the global pandemic, where some
companies face investment budget constraints and limitations to
accessing their premises due to lock-down policies implemented in
many countries, this transition is amplified.
During the second quarter, the Company signed 17 additional
subscription deals (compared with 10 in the first quarter).
Notably, Verimatrix closed the migration of several of its
customers from IPTV on-premise contracts to Verimatrix managed
cloud service, which includes support and maintenance, access to
the latest version and ability to easily expand their subscribers’
base.
As expected, revenue is impacted, in the short term, by the
transition of the revenue model from perpetual licenses to
subscriptions (both for SaaS and on-premises implementations). It
is estimated that approximately $2.5m of revenue in the second
quarter 2020 shifted from licenses (that would have been recognized
upfront) to subscriptions (to be recognized ratably of the term of
the agreement).
During the quarter, the Company closed two significant
cross-selling opportunities, bundling Verimatrix application
shielding products (from Inside Secure) with the Company’s video
conditional access products (VCAS) and two significant up-selling
opportunities, selling application shielding products to historical
VCAS customers.
On top of the structuring consequences of the Company’s evolving
revenue model, the revenue performance in the quarter was also
moderately impacted by the short-term effects of the Covid-19
pandemic, with good resilience overall.
Covid-19 impacted customers’ ability to deploy new systems and
services as they have been cautious with their capital expenditures
and faced limitations to deploy new infrastructure due to lockdown
measures. It limited the ability to close new licenses and to a
lesser extent generate professional services, which are both down
year-on-year. In parallel, with respect to royalties, due to delays
in manufacturing of set-top boxes and the delays in shipping due to
restrictions and customs delays, volumes in the second quarter were
down year-on-year (while royalty collection from OTT customers
remained steady in the quarter).
As a consequence of both transition to subscription and SaaS
model and Covid-19, non-recurring revenue from licenses and
professional services was $8.7 million in the second quarter of
2020, down year-on-year.
First-half 2020 revenue
Revenue for the first half of 2020 was down 12% compared with
first-half 2019 on a pro forma basis (accounting for 6 months on
Verimatrix, Inc. business in 2019). Revenue in first-half 2019
included $3.5 million revenue from its NFC patent licensing program
managed by France Brevets compared with nil in the first half of
2020. Revenue for the core software business was $44.2 million,
down 6% vs. first-half 2019.
Recurring revenues from royalties, maintenance and subscription
fee were $29.3 million in the first-half of 2020. These recurring
revenues grew by 13% year-over-year and stood at 66% of
revenue.
It is estimated that during the first half of 2020,
approximately $4 million perpetual licenses shifted to multi-year
subscription agreements, thus impacting immediate revenue
recognition but generating long-term recurring revenue for the
company.
From gross profit to net income
(in thousands of US$)
H1 2020(adjusted,reported)
H1 2019(adjusted,pro forma)
Revenue
44 170
50 418
Gross profit
37 037
40 427
As a % of revenue
83.9%
80.2%
Research and development expenses
(11 525)
(12 801)
Selling and marketing expenses
(12 584)
(12 460)
General and administrative expenses
(7 587)
(10 438)
Other gains / (losses), net
(119)
(299)
Total adjusted operating expenses
(31 815)
(35 999)
Operating Income
5 222
4 428
EBITDA
7 393
7 229
Adjusted gross profit
Adjusted gross profit for first-half 2020 was $37.0 million,
compared with $40.4 million in first-half 2019 (on a pro forma
basis).
Excluding the contribution of the Company’s NFC licensing
program, core business adjusted gross profit was slightly down at
$37.3 million compared with 38.3 million for first-half 2019.
Increase in gross margin to 84.5% in first-half 2020 (vs. 81.6% in
first-half 2019) thanks to tighter cost management almost balanced
the 5% decrease in revenue year-on-year.
Adjusted operating expenses
Operating expenses decreased from $36.0 million for the first
half of 2019 (on a pro forma basis) to $31.8 million for the first
half of 2020 as:
- Verimatrix reaped as expected the benefits
from the cost synergies plan implemented in the second quarter of
2019 in the context of the integration of Verimatrix, Inc.; - the
Company benefited from cost savings as a consequence of lockdown
measures worldwide (practically no travel expense, physical trade
shows cancelled, some internal project delayed to due lock down
measures) and more generally tighter control of expense.
Nevertheless, during the first half of 2020 the Company did not
proceed to lay-off nor implement partial unemployment as a
consequence of Covid-19 pandemic. The company kept on investing in
innovation, sales and marketing to address markets which long term
potential remains intact despite short-term challenges.
Adjusted operating income and EBITDA
Adjusted operating income for the first half of 2020 was $5.2
million, representing 12% of revenue compared with $4.4 million in
first-half 2019. Excluding contribution of the NFC patent licensing
program which had generated $2.1 million in operating income in
first-half 2019, adjusted operating income increase by 110%
year-over-year.
EBITDA for the first half of 2020 was $7.4 million, representing
17% of revenue. Excluding contribution of the NFC patent licensing
program wich had generated $2.3 million in EBITDA in first-half
2019, EBITDA of core software business ($7.7 million i.e. 17.4% of
revenue) increased by 54% year-on-year, since lower operating
expenses more than offset the slight decrease in gross profit.
Strong improvement of IFRS operating and net income
(in thousands of US$)
H1 2020 H1 2019
Adjusted operating income
5 222
9 484
Fair value adjustment on deferred revenue (Item without cash
impact)
-
(1 049)
Amortization and depreciation of assets acquired through business
combinations (Items without cash impact)
(2 543)
(1 968)
Acquisition related expenses
(75)
(2 762)
Non recurring costs related to restructurations
(30)
(10 661)
Share based payments
(225)
(490)
Operating income/(loss)
2 349
(7 447)
Finance income/(loss), net
(3 906)
(1 957)
Income tax expenses
(209)
226
Net income/(loss) from continuing operations (i)
(1 766)
(9 178)
Net income/(loss) from discontinued operations (ii)
(157)
3 617
Net income/(loss) (i) + (ii)
(1 923)
(5 561)
First-half 2019 includes Verimatrix, Inc. for 4 months, compared
with 6 months in first-half 2020 Sums may not equal totals due to
rounding
Operating income/(loss) from continuing operations
In the first half of 2020, Verimatrix generated a consolidated
(IFRS) operating income of $2.3 million, compared to a loss of $7.4
million in first-half 2019 when the company incurred significant
one-off expenses in relation with the acquisition of Verimatrix,
Inc., the implementation of the cost synergies plan and the
restructuring related to the integration of the combined
businesses.
Finance income, net
Net financial expense was $3.9 million in the first half of
2020, mainly driven by the interest expense of the $44 million loan
related to the financing of Verimatrix acquisition in February 2019
(bullet loan note due 2026) for $2.2 million and of the convertible
bonds (“OCEANE”) due 2022 for $0.5 million.
Net income/(loss) from continuing operations
In the first half of 2020, continuing operations generated a net
loss (IFRS) of $1.8 million against a net loss of $9.2 million in
the first half of 2019. Strong increase in net income is explained
by a combination of operating leverage and marginal one-off
expenses in 2020 compared with 2019.
Net income/(loss)
In the first half of 2020, the Company generated a consolidated
net loss (IFRS) of $1.9 million against a net loss of $5.6 million
in the first half of 2019. It is derived from the net loss for the
continuing operations for $1.0 million, and a net loss of $0.2
million from discontinued operations (net follow-up expenses from
the Silicon IP business unit sold to Rambus in December 2019).
2. Financial position
(in thousands of $)
H1 2020 H1 2019
Cash generated by / (used in) continuing
operations before changes in working capital
6 651
3 420
Cash generated by / (used in) changes in working capital from
continuing operations
(5 826)
(13 741)
Cash generated by / (used in) continuing operations
826
(10 321)
Cash generated by / (used in) discontinued operations
(157)
413
Taxes paid
(720)
(1 639)
Interests paid
(3 854)
(416)
Net cash generated by / (used in)
operating activities
(3 904)
(11 963)
Cash flows used in investing activities, net
(2 383)
(129 762)
Cash flows from financing of discontinued activites, net
-
(178)
Cash flows from / (used in) financing activities, net
(1 227)
108 561
Net increase / (decrease) in cash and cash
equivalents
(7 514)
(33 341)
Cash and cash equivalents
at beginning of the period
53 975
47 381
Foreign exchange impact
(11)
58
Cash and cash equivalents at end of the
period
46 450
14 098
Liquidity
As of June 30, 2020, the company’s consolidated cash position
was $46.5 million, compared with $14.1 million at June 30, 2019 and
$54.0 million at December 31, 2019.
Verimatrix has a solid financial position to face the
consequences of the Covid-19 epidemic. The Company’s financial debt
matures in July 2022 (EUR 16 million “OCEANE“ convertible bonds)
and February 2026 ($44 million bullet private loan).
Net debt stood at $11.3 million at June 30, 2020, compared with
$52.5 million at June 30, 2019 and $3.4 million at December 31,
2019. Net debt is a non-IFRS measure defined by Verimatrix as cash
on hand, cash equivalents and short-term investments, less bank
overdrafts, financial debt (excluding obligations under IFRS 16 for
finance leases), bank loans, private loans, and the debt component
of the “OCEANE” convertible bonds due 2022 (see reconciliation with
IFRS in Appendix 3 hereof).
Cash flows
Cash position decreased by $7.5 million in the first-half of
2020, consistent with the Company’s business seasonality.
Historically, Verimatrix generates most of its operating cash flows
in the second part of the calendar year. Operating cash flow was
balanced by change in working capital, interest expense, income
tax, capital investments and repayment of lease obligations.
Cash collection from customers did not show a slow down during
the period and the Company did not experience default of payment,
even if the company remains vigilant in the context of
Covid-19.
Operating activities of continuing operations before changes in
working capital generated $6.7 million of cash flow in the
first-half of 2020, compared with $3.4 million in the first half of
2019. Changes in working capital used $5.8 million, primarily due
to seasonality (typically significant annual payments are made in
the first quarter of the year).
Overall, operating activities generated $0.8 million of
operating cash flows in the first-half of 2020. They are not
comparable to 2019 which was impacted by the integration of
Verimatrix, Inc., consolidated starting March 1, 2019.
Interest expense and income tax used respectively $3.9m and $0.7
million in the first half-2020.
Investing activities used $2.4 million, including capitalized
R&D for $1.4 million.
3. Business outlook
On the back of first-half 2020 results, Verimatrix remains
confident on the resilience of its business and focused on
executing its strategy, and, in particular:
- take benefit from the momentum created by
the unprecedented demand for remote access, cloud services and
content worldwide, requiring simple, scalable, standardized and
secure content protection solutions and leverage the Company’s
expertise and foothold; the company believes that this momentum is
boosted by the consequences of the Covid-19 pandemic; - grow
recurring revenues, in particular the subscription business
leveraging both its on-premise and SaaS solutions and, as a
consequence, grow the Annual Recurring Revenue (“ARR”); - develop
the code and application protection solutions business, through
product development and increased marketing presence, in particular
at a time when cyberattacks are spreading; - increase cross-selling
and up-selling revenue synergies (starting with existing
Verimatrix, Inc. VCAS customers signing up to former Inside Secure
Code Protection and ProtectMyApp solutions to protect their mobile
streaming applications). - Maintain tight control of expense to
preserve profitability and cash flow while investing in products
and services and market presence to address markets which long term
potential remains intact.
As a reminder, the previous 2020 and 2021 objectives5 had been
suspended last quarter. As the evolution of the Covid-19 crisis
remain uncertain at this stage with still limited visibility, it is
too early to translate the above strategic roadmap into new
objectives and objectives communicated earlier in the year remain
suspended.
Live webcast/Conference call
Verimatrix hold an audio webcast conference today July 29 at 6
pm CET (Paris) to comment first-half 2020 results. A live webcast
of the conference call will be accessible using the following link:
https://channel.royalcast.com/webcast/verimatrix/20200729_1/. The
presentation will be available online prior to the conference call
on the homepage of Verimatrix's investor website
www.verimatrix-finance.com.
The call will also be accessible by dial-in on one of the
following numbers: France +33 (0) 1 7099 4740; UK +44 (0) 20 3003
2666; USA +1 212 999 6659; Password: Verimatrix
The replay of the event will be available using the following
link: https://channel.royalcast.com/webcast/verimatrix/20200729_1/
or, directly from the Verimatrix website
www.verimatrix-finance.com.
Financial calendar
- Third-quarter 2020 revenue: October 22, 2020
About Verimatrix
Verimatrix (Euronext Paris: VMX) helps power the modern
connected world with security made for people. We protect digital
content, applications, and devices with intuitive, people-centered
and frictionless security. Leading brands turn to Verimatrix to
secure everything from premium movies and live streaming sports, to
sensitive financial and healthcare data, to mission-critical mobile
applications. We enable the trusted connections our customers
depend on to deliver compelling content and experiences to millions
of consumers around the world. Verimatrix helps partners get to
market faster, scale easily, protect valuable revenue streams, and
win new business. To learn more, visit www.verimatrix.com.
Basis of preparation
Inside Secure (renamed Verimatrix following shareholders’ vote
on June 24, 2019) completed the acquisition of Verimatrix, Inc, on
February 28, 2019.
Verimatrix (the “Company”) has prepared its results in
accordance with IFRS (which accounted for 4 months of activity of
Verimatrix, Inc. in first-half 2019, compared to 6 months in 2020).
Comments on IFRS results for the first half of 2020 compared with
IFRS results for the first-half of 2019 - from revenue to operating
income - are presented in Appendix 1 hereof and IFRS consolidated
income statement, balance sheet and cash flow statement are
presented in Appendix 2.
The Company has also prepared unaudited pro forma results as if
the acquisition of Verimatrix, Inc. had been completed on January
1st 2019 to enable comparison with 2020. Pro forma are deemed
“adjusted” compared with IFRS since, consistent with the Company’s
prior financial communications, they exclude (i) non-recurring
adjustments on revenue due to purchase accounting (deferred
revenue), (ii) the amortization of intangible assets related to
business combinations, (iii) any potential goodwill impairment,
(iv) share-based payment expense and (v) non-recurring costs
associated with restructuring and business combinations.
Definitions of adjusted measures are provided in Appendix 3
hereof.
On December 6, 2019, the Company completed the sale of its
Silicon IP business unit to Rambus Inc. (NASDAQ: RMBS) in an
all-cash transaction. Since the Silicon IP business unit was a
separate major line of business within the meaning of IFRS 5, the
revenue and results of this activity have been isolated on a
separated line item of the consolidated income statement “Net
income from discontinued operations” both for 2019 and 2020.
Silicon IP business unit revenue and results are excluded from the
adjusted performance indicators.
Supplementary non-IFRS financial information
Some financial measures and performance indicators used in the
press release are presented on an adjusted basis. They are defined
in Appendix 3 of this press release. They should be considered as
additional information, which cannot replace any other strictly
accounting-based operating or financial performance measure, as
presented in the consolidated financial statements, including the
income statement set out in Appendix 2 hereof. The definitions of
adjusted financial measures are presented in Appendix 3 hereof.
Forward-looking statements
This press release contains certain forward-looking statements
concerning Verimatrix. Although Verimatrix believes its
expectations to be based on reasonable assumptions, they do not
constitute guarantees of future performance. Accordingly, the
Company’s actual results may differ materially from those
anticipated in these forward-looking statements owing to a number
of risks and uncertainties. For a more detailed description of
these risks and uncertainties, please refer to the "Risk factors"
section of the 2019 universal registration document filed with the
French financial market authority (the Autorité des marchés
financiers – the “AMF”) on May 11, 2020, available on
www.verimatrix-finance.com.
1 Revenues for 2019 and 2020 exclude the Silicon IP business
unit divested in December 2019 (see Basis of Preparation) 2 2020
reported compared with 2019 por forma (as if Verimatrix, Inc. had
been acquired on January 1, 2019) 3rimatrix uses performance
indicators that are not strictly accounting measures in accordance
with IFRS; definitions of adjusted financial measures are presented
in Appendix 3 hereof 4 The consolidated financial statements as of
June 30, 2020 were reviewed by the board of directors on July 28,
2020; the statutory auditors have substantially completed their
imited scope audit 5 March 4, 2020, the Company communicated the
following objectives: (i) In 2020, the Company shall deliver
high-single digit core business revenue growth while getting the
full benefit of its cost synergy plan to generate an EBITDA margin
in a range of 23% to 25% of revenue; (ii) for 2021, the Company
targets core business revenue of $125 million and EBITDA margin of
26% of revenue.
Appendix 1 - IFRS first-half 2020
financial results
Q2 2020 and H1 2020 consolidated revenue
In the second quarter of 2019, consolidated revenue was $24.2
million, down 9% compared with 2019, primarily due to the
transition to SaaS and subscription model and to a lesser extent to
business consequences of Covid-19.
In the first half of 2020, consolidated revenue was $44.2
million as compared to $42.5 million in the first half of 2019,
driven primarily by the addition of the Verimatrix business (which
accounted for 4 months of Verimatrix, Inc. activity in first-half
2019 consolidated revenue).
Gross Profit
Gross profit for the first half of 2020 was $36.1 million,
compared with $35.5 million in the first half of 2019, primarily
due to the incremental revenue from Verimatrix business,
consolidated starting March 1, 2019.
Gross margin decreased from 83.5% in the first half of 2019 to
81.8% in the first half of 2020 mainly due to product-mix.
Operating expenses
Operating expenses decreased from $42.9 million in the first
half of 2019 to $33.8 million in the first half of 2020 as the
company incurred one-off acquisition and restructuring charges in
2019 and in 2020 benefited fully from the cost synergy plan
implemented in the second quarter of 2020.
Appendix 2 – Consolidated income
statement, balance sheet and cash flow statement (IFRS)
The following tables are an integral part of the condensed
consolidated financial statements prepared in accordance with
IFRS.
Consolidated income statement
(In thousands of US$)
First-half 2020
First-half 2019 Revenue
44 170
42 499
Cost of sales
(8 042)
(7 023)
Gross profit
36 128
35 476
Research and development expenses
(12 421)
(11 801)
Selling and marketing expenses
(13 696)
(11 865)
General and administrative expenses
(7 680)
(5 805)
Other gains / (losses), net
18
(13 452)
Operating profit (loss)
2 349
(7 447)
Cost of financial debt, net
(3 561)
(2 397)
Other financial income/(loss), net
(345)
440
Profit (loss) before income tax
(1 557)
(9 404)
Income tax expenses
(209)
226
Net income/(loss) from continuing
operations (i)
(1 766)
(9 178)
Net income/(loss) from discontinued operations (ii)
(157)
3 617
Net income/(loss) (i) + (ii)
(1 923)
(5 561)
Consolidated balance sheet
Assets (In thousands of US$) June 30,
2020 December31, 2019 Goodwill
115 252
115 239
Intangible assets
20 796
21 637
Property and equipment
14 108
15 491
Other receivables
20 718
18 682
Non-current assets
170 875
171 049
Inventories
556
440
Trade receivables
32 482
36 731
Other receivables
13 860
13 707
Derivative financial instruments
139
89
Cash and cash equivalents
46 450
53 975
Current assets
93 487
104 942
Total assets
264 362
275 992
Equity and liabilities (In thousands of US$)
June 30, 2020 December31, 2019 Ordinary
shares
41 253
41 252
Share premium
266 952
266 952
Retained earnings
(151 533)
(179 041)
Income / (loss) for the period
(1 924)
27 254
Equity attributable to equity holders of the Company
154 748
156 417
Non-controlling interests
-
-
Total equity
154 748
156 417
Borrowings
55 803
56 626
Convertible bonds
15 431
14 936
Derivative financial instruments
1 994
1 626
Provisions
763
859
Deferred tax liabilities
1 313
2 209
Non-current liabilities
75 305
76 256
Borrowings
2 061
2 042
Trade payables
5 447
8 179
Other liabilities
12 722
16 679
Financial instruments
38
26
Provisions
1 475
1 530
Unearned revenues
12 565
14 863
Current liabilities
34 309
43 319
Total liabilities
109 613
119 575
Total equity and
liabilities
264 362
275 992
Consolidated cash flow statement
(In thousands of US$) June 30,2020
June 30,2019 Income / (loss)
for the period
(1 766)
(9 178)
Non cash income statement items from continuing activities
8 419
12 598
Changes in working capital from continuing operations
(5 827)
(13 741)
Changes in working capital from discontinued operations
-
(2 398)
Cash generated by / (used in) discontinued operations
(157)
2 811
Cash generated by / (used in) operating activities
669
(9 908)
Taxes paid
(720)
(1 639)
Interests paid
(3 854)
(416)
Net cash generated by / (used in) operating activities
(3 904)
(11 963)
Acquisition of Verimatrix, net of
transferred cash
-
(129 122)
Purchases of property and equipment
(192)
(169)
Purchases of intangible assets
(2 191)
(471)
Cash flows from investing activities
(2 383)
(129 762)
Proceeds from issuance of
ordinary shares, net of issuance costs
-
57 808
Proceeds from loans
-
51 492
Loan repayments
(59)
(57)
Reimbursement of lease commitments under IFRS16
(1 168)
(682)
Cash flows from financing activites discontinued operations, net
-
(178)
Cash flows from financing activities
(1 227)
108 383
Effect of exchange rate fluctuation
(11)
58
Net increase in cash and cash
equivalents
(7 525)
(33 283)
Cash and cash equivalents at
beginning of the period
53 975
47 381
Cash and cash equivalents at end of the period
46 450
14 098
Appendix 3 - Non-GAAP measures -
Reconciliation of IFRS results with adjusted results
The performance indicators presented in this press release that
are not strictly accounting measures are defined below. These
indicators are not defined under IFRS, and do not constitute
accounting elements used to measure the company’s financial
performance. They should be considered as additional information,
which cannot replace any other strictly accounting-based operating
or financial performance measure, as presented in the company’s
consolidated financial statements and their related notes. The
company uses these indicators because it believes they are useful
measures of its recurring operating performance and its operating
cash flows. Although they are widely used by companies operating in
the same industry around the world, these indicators are not
necessarily directly comparable to those of other companies, which
may have defined or calculated their indicators differently than
the company, even though they use similar terms.
Adjusted revenue is defined as revenue before
non-recurring adjustments related to business combinations
(deferred revenue). It enables comparable revenues for 2019 and
2020.
Adjusted gross profit is defined as gross profit before
(i) the amortization of intangible assets related to business
combinations, (ii) any potential goodwill impairment, (iii)
share-based payment expense and (iv) non-recurring costs associated
with restructuring and business combinations and divestiture
undertaken by the company.
Adjusted operating income/(loss) is defined as operating
income/(loss) before (i) the amortization of intangible assets
related to business combinations, (ii) any potential goodwill
impairment, (iii) share-based payment expense and (iv)
non-recurring costs associated with restructuring and business
combinations and divestiture undertaken by the company.
EBITDA is defined as adjusted operating income before
depreciation, amortization and impairment expenses not related to
business combinations.
Net debt reconciliation
(in thousands of US$)
June 30,2020 December
31,2019 June 30,2019 Cash and cash
equivalents
46 450
53 975
14 098
Private loan due 2026
(42 307)
(42 123)
(51 624)
Convertible bonds due 2022 (OCEANE)
(15 431)
(14 936)
(14 593)
Other loans
(55)
(267)
(371)
Net cash/(debt)
(11 343)
(3 351)
(52 490)
Financial lease
commitments under IFRS16
(15 505)
(16 278)
(8 653)
Net cash/(debt) including IFRS
16
(26 848)
(19 629)
(61 143)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200729005638/en/
Investor Relations Richard Vacher Detournière General
Manager & Chief Financial Officer +33 (0)4 42 905 905
finance@verimatrix.com
Media Kelly Foster +1 619 224 1261
kfoster@verimatrix.com
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