Financial Press Releases

• ACCELERATION IN 4K-UHD TAKE-UP
• ATEME JOINS THE "ALLIANCE FOR OPEN ​MEDIA"

Figures subject to a limited review by ATEME's statutory auditors.

Paris, 28 July 2016 - ATEME (ISIN: FR0011992700), world specialist in video compression, reported revenues of €14,980k for the first half of 2016 (which closed on 30 June), up 21.5% on the same period last year (+21.6% at constant exchange rates). After a rise of 12.2% in the first quarter, revenues accelerated sharply in the second quarter (+32.3%) to €7,544k.

Activity for the first half of the year was particularly strong in ATEME's two primary markets, EMEA (+19.8%), and in particular North America (+47.4%) reflecting the effect of additional commercial resources deployed in this market in recent months, including a new office in Denver (Colorado).

In Latin America and Asia Pacific, activity was stable on the first half of 2015.

Accelerating ramp-up of 4K-UHD
During the first six months of 2016, ATEME capitalized on renewed levels of confidence amongst existing clients and gained several new international accounts thanks to the marketing drive that followed its IPO.

The accelerating ramp-up of 4K-UHD which is now adopted by many of the world's largest TV operators has led to ATEME's solutions being selected by:

• In Europe: TF1 and M6 to broadcast eight matches from the 2016 European Football Championship; AB Group for its new UHD "Ultra Nature" channel; and the French Tennis Federation (FFT) and France Télévisions, in partnership with TDF and Eutelsat, to broadcast the semi-finals and finals at of The French Tennis Open in June;
• In Latin America: Turner Esporte Interativo in Brazil and TV Azteca in Mexico.

ATEME also secured the first major orders for its new TITAN solution, launched at the start of 2016:

• In the United States: DirecTV and a Tier 1 cable operator which has already launched around 100 channels in the first phase of its deployment of the TITAN platform;
• In Asia: Arcana, a Malaysian satellite operator, and FPT Telecom, a Vietnamese telecoms operator.

Improvement in operating performance
ATEME expects to significantly reduce its half-year operating loss compared to the €2.5 million loss reported for the first half of 2015, confirming its ability to continue to grow whilst maintaining tight control over costs. The commercial outlook for the coming months points to a further improvement in the second half.

ATEME President, Michel Artières, said: "The first half of 2016 marked an important stage in our commercial development in the United States where activity increased by almost 50%.

The contracts secured during this period confirm the potential of our new TITAN software with major operators in both the US and Europe; sales of TITAN will further underpin growth over the second half in a market driven by the rise in video consumption around the world and the increasing penetration of Ultra High Definition (UHD).

As such, we are confident in our ability to continue to improve our operating performance."

ATEME joins the “Alliance for Open Media”
ATEME's technology was recognized in June with its inclusion among global players such as Google, Intel, Microsoft and Netflix in the “Alliance for Open Media”. The organization's aim is to define a new open video codec and format for the web, as an alternative to HEVC for TV. By participating in this group ATEME will ensure that its software solutions are adapted to supporting this future compression standard.

Next investor dates:

29 September 2016: H1 2016 Results after market close
 

Next trade shows:

30 August to 3 September 2016: SET Expo in São Paulo
9 to 13 September 2016: IBC in Amsterdam
 

About ATEME
ATEME is a technological leader in video compression that provides TV channels and content broadcasters with encoding and decoding solutions for video delivery. The company's technological edge means clients benefit from outstanding image quality whilst at the same time reducing their bandwidth consumption.

Drawing on over 10 years of proprietary R&D, ATEME was a key contributor in the launch of HEVC (High Efficiency Video Coding), the new standard in video compression whose generalized application offers excellent growth potential for the Group.

With a commercial presence in 14 countries, ATEME employs 165 members of staff, including 60 R&D employees in France, and served close to 300 clients around the world in 2015. The Group posted revenues of €28.6 million in 2015, 88% of which was realized overseas.

Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C