|(Unaudited) In € millions||H1 2015||H1 2016||Change|
|Maintenance – Support||6.9||7.6||+10%|
|Total Software Revenues||12.3||13.4||+10%|
|Total revenues for the semester||21.9||20.9||-4%|
|Total Gross Margin for the semester||17.3||18.2||+5%|
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for its first half-year ended June 30, 2016.
Overall software revenues (comprising licences and support revenues) were up 10% over the first six months of the year. The growth differential in this line of revenue between Q1 (+25%) and Q2 (-2%) is due to revenue recognition in the first quarter of 2016 for several overdue maintenance contract renewals, whereas in 2015 similar late support-contract revenue recognition occurred in Q2.
Growth in software revenues resulted from new projects from leading broadcasters and content producers, in particular in North America and Asia-Pacific, and from the continued increase in recurring support, due to the year on year growth of the installed base.
Service revenues (integration, configuration and training professional services) were up 7% compared to last year's first half. Hardware resale, which is a low margin, non strategic business for Dalet, diminished significantly (-43%), as H1-2015 included a one-off exceptionally large contract signed with an operator which entrusted its entire infrastructure to Dalet.
As a direct consequence of the decrease in hardware resale, total consolidated revenues for the semester were down by 4% at €20.9 million. However gross margin (defined as sales minus cost of goods and third-party services resold) increased by 5% at €18.2 million, reflecting the more favorable sales mix. Gross margin rate increased to 87% of revenues over the first semester of 2016 up from 79% for the same period in 2015.
Broken down by geographic region, the Group's earlier investments in Asia Pacific have delivered a revenue increase of 20% at €2.9 million (14% of total revenues for the semester). Europe (€9.2 million revenues) remains the largest zone in terms of revenues at 44% compared to 49% in H1-2015. After neutralizing the unfavorable base effect linked to the low-margin hardware sales in H1-2015, business in Europe remains on a positive trend. Revenues for the Americas increased slightly at €8 million, rep