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 resultsfor 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 5,786K€, an increase of 7.1% as compared with 2012.During  the first six months of 2013, the  salaries and wages and other expensesdecreased  respectively by -10.4% and -5.1%  as compared with the first semester2012. A  330 K€ tax credit for research  activities was accounted for during thefirst semester of 2013 as compared with 340 K€ for the first semester 2012.The  consolidated current operating income amounted to 1 033 K€ as compared with202 K€ for the first semester of 2012.The  operating income amounted to  223 K€ - because a  provision was recorded tocover  risks related to the  dispute with the European  Commission - as comparedwith 181 K€ during the first semester of 2012. Financial income amounted to 206K€.  Consolidated net income amounted  to 132 K€ as compared  with 295 K€ in thefirst semester 2012.Total  shareholders' equity amounted to 15 million  Euros as compared with 14.8million  Euros as of December 31, 2012. The Company's net cash position amountedto  11.2 million Euros at June 30, 2013, as  compared with 22.9 million Euros onDecember  31, 2012. This difference is due to the reimbursement of the amount of12,001,000 Euros  to the  European Commission  as per  the judgment  dated April18, 2013 from  the European  Court of  Justice. Total  group debt amounted to 1million  Euros  as  of  June  30, 2013 against  0.4 million  Euros  on  December31, 2012.Activities - First semester 2013Total  sales  amounted  to  5,786 K€,  divided  between  3,597 K€  for  SoftwarePublishing 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€ andrepresent 62.2% of total sales, an increase of 31.6% as compared with 2012. Thisgrowth is due to a large order received from the US Government.Professional  Services sales totalled  to 2,189 K€ and  represent 37.8% of totalsales,  a decrease  of 17.9% as  compared with  the first semester 2012. HoweverSYSTRAN  Software Inc. has suffered from the  decrease of the orders coming fromthe  US Government and backlog orders on June 30, 2013 is much lower as comparedto the one of June 30, 2012.More  than half of SYSTRAN sales are  in North America. Sales are distributed asfollows:-----------------------------------------+---------------+---------------  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-----------------------------------------+---------------+---------------OutlookIn  2013 SYSTRAN  plans  to  expand  the  sales  team  to develop revenue in allbusiness  segments. SYSTRAN will also launch new version of its server solutionsand cloud services for corporate customers.Taking  into  account  the  level  of  existing  orders and the current economicenvironment,  sales for the  second semester 2013 should  be less than the firstsemester 2013 and the second semester 2012.Dispute with the European CommissionOn  April 18, 2013, the European Court of Justice  set aside the judgment of theEuropean  General Court ordering the European  Commission to pay SYSTRAN a lump-sum amount of 12,001,000 Euros as compensation for the material damage sustainedby it.The  European Court of Justice has declared  that "the General Court should havedeclined jurisdiction and invited the parties to refer to the competent nationalcourts,  designated  by  the  various  contracts  concerning the SYSTRAN machinetranslation  system,  concluded  by  SYSTRAN  and the Commission" (Press releasedated April 18, 2013 from the Court of Justice of the European Union).Furthermore,  the  European  Court  of  Justice  has given final judgment on thedispute 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 theEuropean Commission.  This amount was kept on a safe account and its refunddoesn'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 Courtson  one hand,  and to  compensatory interests  - based on 12,001,000 Euros whichhave  been reimbursed to the Commission -  claimed by the European Commission onthe other hand.Furthermore,  SYSTRAN has  lodged a  new action  against the European Commissionbefore  the Court  of Luxemburg.  The assignation  was delivered to the EuropeanCommission on June 19, 2013.About SYSTRANSYSTRAN  is  the  market  historic  provider  of  language  translation softwareproducts and solutions for the desktop, enterprise and Internet.Use  of SYSTRAN  products and  solutions enhance  multilingual communication andincrease  user productivity.  SYSTRAN delivers  real-time language solutions forsearch,  content  management,  online  customer  support,  intra or intercompanycollaboration, and eCommerce.With the ability to facilitate communication in 52+ language combinations and in20 vertical  domains,  SYSTRAN's  software  is  the  choice  of  leading  globalcorporations, portals and public agencies.SYSTRAN  has  been  pioneering  advances  in  machine  translation for over fourdecades.  Its latest achievement, SYSTRAN Hybrid MT, combines the predictabilityand  language consistency of rule-based machine  translation with the fluency ofstatistical MT.SYSTRAN  is headquartered in Paris, France  with a North American office locatedin San Diego, California, USA.SYSTRAN (Code ISIN FR0004109197, Bloomberg: SYST NM, Reuters: SYTN.LN) is listedon EuroNext Paris, Compartiment C.For more information, visit www.systransoft.comContactDimitris SABATAKAKIS, Chairman & CEOTelephone: +33 (0)1 44 82 49 00   Fax: +33 (0)1 44 82 49 01Email: sabatakakis@systran.frRevenue for the third quarter 2013 ending on September 30, 2013 will beannounced on November 8, 2013.This Press Release is available for download at:http://www.systransoft.com/systran/investors/press-releasesHalf-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)expensesWages 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                  25Other operating expenses                            (12 922)                (46)--------------------------------------------------------------------------------Operating income                                         223                 181--------------------------------------------------------------------------------Net cost of debt                                         220                 262Other 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 shareOn the basis of the average number ofshares 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]