Financial Press Releases

• Revenues of €13.6 million up 42% (34 % at constant currency)
• ATEME demonstrates innovation leadership at NAB
• All elements of the financial outlook confirmed

Q1 figures are unaudited.

Paris, May 7, 2019 - ATEME (ISIN: FR0011992700), the emerging leader in video delivery infrastructure, generated revenues of €13.6 million in the first quarter of 2019, up 42.1% year-on-year and by 34% at constant exchange rates.

• declined by 28% year-on-year to €3,193 K, after a 29% increase in Q1 2018;
• The USA/Canada region delivered revenues of €6,934 K, up by 152% (136% at constant currency), boosted by a large single project with a top 10 cable operator. The region accounted for over 50% of the topline in Q1;
• Latin America Q1 revenues rose by 57% to €1,989 K (45% at constant currency), and Asia Pacific revenues rose by 33% at €1,471 K (23% at constant currency).

ATEME Chairman and Chief Executive Officer, Michel Artières, said “This strong start to the year gives us a good base to achieve our full year target of 20% revenues growth at constant currency. Moreover, our multiyear engagement model is gaining solid traction in the market and should lead to a more recurrent growth profile in the coming years.”

Innovation leadership supporting mid-term growth

At the recent NAB show in Las Vegas, ATEME once again demonstrated its innovation credentials, notably with technology demonstrations of 4K and 8K content using next generation compression standards including the Alliance for Open Media's AV1 and MPEG Group's VVC, with all types of HDR (“High Dynamic Range”) available on the market. ATEME demonstrated on the show floor a complete live and file virtualized video headend, hosted on public cloud and displayed on the booth.

ATEME also demonstrated significant enhancements in contribution and distribution solutions, including an encryption group manager, leveraging the European Broadcasting Union's (EBU) “BISS-CA” royalty-free and open specifications for Conditional Access.

On this occasion, ATEME was honored by Sinclair Broadcast Group as a key provider and partner in its next-generation broadcast nationwide buildout, in recognition of its efforts to develop the ATSC 3.0 technology, the new standard for the terrestrial digital broadcasting system in the United States and Korea.

Financial outlook confirmed

ATEME is targeting average annual revenue growth above 20% (at constant currency and perimeter) for the current and following year, while improving the product mix and gross margin and engaging in multiyear contracts with some of our largest clients in order to gradually build more visibility and predictability in our revenue profile. During this period, ATEME will contain the rise in sales & marketing and R&D investments at a lesser rate than revenues.

Financial Calendar:

18 July 2019: 2019 first-half revenues

About ATEME: the emerging leader of video delivery infrastructure, servicing the world greatest content and service providers.

ATEME was founded in 1991 as a design house with a focus on video processing. In the 2000s, ATEME specialized in video compression and shortly afterwards introduced a complete video delivery solution. In 2014 ATEME announced its initial public offering at Euronext Paris.

ATEME has and will continue to transform video delivery. ATEME was the first to market with a 10-bit 4:2:2 solution, the first production ready HEVC & HDR, and recently, the first true video delivery NFV software solution, designed to lead and win the service providers transition to video datacenter. To complement our cutting-edge technology, ATEME has partnered with leaders such as Intel, Apple and Microsoft to create the best in class video delivery solutions.

ATEME is a leading member of forms, and organizations, such as the DVB and SMPTE. ATEME actively participated at the ITU in the standardization of HEVC in 2013. In June 2014 ATEME joined the Alliance for Open Media to help develop an open and royalty-free video codec.

ATEME headquarters are Vélizy-Paris, with worldwide support and R&D offices in Rennes, Denver, Sao-Paulo and Singapore. With a commercial presence in 18 countries, ATEME is 250 employees strong, including 100 of the world finest R&D video experts. In 2018 ATEME served close to 400 clients worldwide with revenues of €56.5 million, 93% of which was from overseas.

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

DISCLAIMER

This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning ATEME's assets, activities or shares.

All statements other than historical facts included in this presentation, including without limitations, those regarding ATEMEs' position, business strategy, plans and objectives are forward-looking statements.

The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.

ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.