SYSTRAN :First Semester 2013 Interim Report

SYSTRAN :First Semester 2013 Interim Report  PARIS, Sept. 11, 2013 (GLOBE NEWSWIRE) --                         First Semester 2013 Interim Report    * Consolidated Sales of 5,786 K€: +7.1 %    * Consolidated Current Operating Income : 1,033 K€    * Consolidated Net Income : 132 K€    September  12, 2013 - SYSTRAN today announced its consolidated financial results for the first semester ended June 30(th), 2013.    --------------------------------------------------------------------------------    Consolidated and                           1(st) semester   Annual Change    Audited Accounts     1(st) semester 2013        2012        2013 / 2012         (in K€) -------------------------------------------------------------------------------- Sales                          5,786              5,402             + 7.1 % -------------------------------------------------------------------------------- Current Operating              1,033               202             +411.4 % Income (Loss) -------------------------------------------------------------------------------- %                             17.9 %               3.7% -------------------------------------------------------------------------------- Net Income (Loss) -             132                295          - 55.3% Group's Share -------------------------------------------------------------------------------- %                              2.3 %               5.5% --------------------------------------------------------------------------------    SYSTRAN's  consolidated sales for the first half  of the year amounted to 5,786 K€, an increase of 7.1% as compared with 2012.  During  the first six months of 2013, the  salaries and wages and other expenses decreased  respectively by -10.4% and -5.1%  as compared with the first semester 2012. A  330 K€ tax credit for research  activities was accounted for during the first semester of 2013 as compared with 340 K€ for the first semester 2012.  The  consolidated current operating income amounted to 1033 K€ as compared with 202 K€ for the first semester of 2012.  The  operating income amounted to  223 K€ - because a  provision was recorded to cover  risks related to the  dispute with the European  Commission - as compared with 181 K€ during the first semester of 2012. Financial income amounted to 206 K€.  Consolidated net income amounted  to 132 K€ as compared  with 295 K€ in the first semester 2012.  Total  shareholders' equity amounted to 15 million  Euros as compared with 14.8 million  Euros as of December 31, 2012. The Company's net cash position amounted to  11.2 million Euros at June 30, 2013, as  compared with 22.9 million Euros on December  31, 2012. This difference is due to the reimbursement of the amount of 12,001,000 Euros  to the  European Commission  as per  the judgment  dated April 18, 2013 from  the European  Court of  Justice. Total  group debt amounted to 1 million  Euros  as  of  June  30, 2013 against  0.4 million  Euros  on  December 31, 2012.   Activities - First semester 2013  Total  sales  amounted  to  5,786 K€,  divided  between  3,597 K€  for  Software Publishing and 2,189 K€ for Professional Services.  -----------------------------------------------------------------------------                                    In                 In      Annual Change          In K€           2013       %       2012       %        2013 / 2012                                 of total           of total -----------------------------------------------------------------------------  Software Publishing     3,597    62.2%     2,733    50.6%        +31.6%   Professional Services   2,189    37.8%     2,669    49.4%        -17.9% -----------------------------------------------------------------------------  Consolidated Sales      5,786    100.0%    5,402    100.0%        +7.1% -----------------------------------------------------------------------------    During  the  first  semester  of  2013, license  sales  amounted to 3,597 K€ and represent 62.2% of total sales, an increase of 31.6% as compared with 2012. This growth is due to a large order received from the US Government.  Professional  Services sales totalled  to 2,189 K€ and  represent 37.8% of total sales,  a decrease  of 17.9% as  compared with  the first semester 2012. However SYSTRAN  Software Inc. has suffered from the  decrease of the orders coming from the  US Government and backlog orders on June 30, 2013 is much lower as compared to the one of June 30, 2012.  More  than half of SYSTRAN sales are  in North America. Sales are distributed as follows:  -----------------------------------------+---------------+---------------   By geographical area of asset location | 1st sem. 2013 | 1st sem. 2012   (in thousands of euros)                |               | -----------------------------------------+---------------+---------------   Europe                                 |         1,717 |         2,287 -----------------------------------------+---------------+---------------   North America                          |         3,642 |         3,115 -----------------------------------------+---------------+---------------   Other geographical areas               |           427 | -----------------------------------------+---------------+---------------   Total sales                            |         5,786 |         5,402 -----------------------------------------+---------------+---------------  Outlook  In  2013 SYSTRAN  plans  to  expand  the  sales  team  to develop revenue in all business  segments. SYSTRAN will also launch new version of its server solutions and cloud services for corporate customers.  Taking  into  account  the  level  of  existing  orders and the current economic environment,  sales for the  second semester 2013 should  be less than the first semester 2013 and the second semester 2012.    Dispute with the European Commission  On  April 18, 2013, the European Court of Justice  set aside the judgment of the European  General Court ordering the European  Commission to pay SYSTRAN a lump- sum amount of 12,001,000 Euros as compensation for the material damage sustained by it.  The  European Court of Justice has declared  that "the General Court should have declined jurisdiction and invited the parties to refer to the competent national courts,  designated  by  the  various  contracts  concerning the SYSTRAN machine translation  system,  concluded  by  SYSTRAN  and the Commission" (Press release dated April 18, 2013 from the Court of Justice of the European Union).  Furthermore,  the  European  Court  of  Justice  has given final judgment on the dispute and has declared and judged:  1. The judgment of the European General Court dated December 16, 2010 in the     case T-19/07 (SYSTRAN S.A. and SYSTRAN Luxembourg / Commission) is annulled.  2. The action for damages of SYSTRAN SA and SYSTRAN Luxembourg is dismissed.  3. SYSTRAN S.A. and SYSTRAN Luxembourg will have to pay the cost incurred by     the European Commission before the European Court of Justice and also before     the European General Court.  On June 26, 2013, SYSTRAN reimbursed the amount of 12,001,000 Euros to the European Commission. This amount was kept on a safe account and its refund doesn't endanger the company. Following   this   decision,   SYSTRAN  has  recorded  a  provision  for  risks, corresponding  to the cost incurred by the Commission before the European Courts on  one hand,  and to  compensatory interests  - based on 12,001,000 Euros which have  been reimbursed to the Commission -  claimed by the European Commission on the other hand.  Furthermore,  SYSTRAN has  lodged a  new action  against the European Commission before  the Court  of Luxemburg.  The assignation  was delivered to the European Commission on June 19, 2013.  About SYSTRAN  SYSTRAN  is  the  market  historic  provider  of  language  translation software products and solutions for the desktop, enterprise and Internet.  Use  of SYSTRAN  products and  solutions enhance  multilingual communication and increase  user productivity.  SYSTRAN delivers  real-time language solutions for search,  content  management,  online  customer  support,  intra or intercompany collaboration, and eCommerce.  With the ability to facilitate communication in 52+ language combinations and in 20 vertical  domains,  SYSTRAN's  software  is  the  choice  of  leading  global corporations, portals and public agencies.  SYSTRAN  has  been  pioneering  advances  in  machine  translation for over four decades.  Its latest achievement, SYSTRAN Hybrid MT, combines the predictability and  language consistency of rule-based machine  translation with the fluency of statistical MT.  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 44 82 49 00 Fax: +33 (0)1 44 82 49 01 Email: sabatakakis@systran.fr  Revenue for the third quarter 2013 ending on September 30, 2013 will be announced on November 8, 2013.  This Press Release is available for download at: http://www.systransoft.com/systran/investors/press-releases  Half-Year financial report is available for download at: http://www.systransoft.com/systran/investors/financial-report/half-year   --------------------------------------------------------------------------------                                         1(st) semester 2013 1(st) semester 2012                 (In K€)                           (6 months)          (6 months) -------------------------------------------------------------------------------- Net sales                                              5,786               5,402 -------------------------------------------------------------------------------- Cost of sales and other external                     (1,575)             (1,659) expenses  Wages and salaries                                   (3,242)             (3,620)  Taxes and duties                                       (125)               (117)  Depreciation and amortization (net)                    (166)               (175)  Other income / (expenses)                                355                 371 -------------------------------------------------------------------------------- Current operating income                               1 033                 202 -------------------------------------------------------------------------------- Other operating income                                12 112                  25  Other operating expenses                            (12 922)                (46) -------------------------------------------------------------------------------- Operating income                                         223                 181 -------------------------------------------------------------------------------- Net cost of debt                                         220                 262  Other financial income and expenses                     (14)                 (8) -------------------------------------------------------------------------------- Net financial income                                     206                 254 -------------------------------------------------------------------------------- Profit before tax                                        429                 435 -------------------------------------------------------------------------------- Income tax expenses                                    (297)               (140) -------------------------------------------------------------------------------- Profit from operations                                   132                 295 -------------------------------------------------------------------------------- Minority interest -------------------------------------------------------------------------------- Net income / (loss) - Group's share                      132                 295 -------------------------------------------------------------------------------- Earning / (loss) per share On the basis of the average number of shares in circulation:  - Number of common shares                          7,153,604           7,816,025  - Euros per share                                       0.02                0.04 --------------------------------------------------------------------------------   SYSTRAN First semester 2013 interim report: http://hugin.info/141962/R/1728701/577355.pdf  [HUG#1728701]  
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