SYSTRAN :Annual results for the year 2012

Marketwired

PARIS--(Marketwire - Feb 14, 2013) -


Annual Results for the year 2012

February 15, 2013 - SYSTRAN, the leading provider of language translationtechnologies, today announced its consolidated financial results for theyearended December 31, 2012.


---------------------------------------+---------+---------+---------------
Consolidated and Audited Accounts (*) | 2012 | 2011 | Annual Change
(in KEUR) | (IFRS) | (IFRS) | 2012 / 2011
---------------------------------------+---------+---------+---------------
Sales | 10,180 | 10,587 | - 3.8 %
---------------------------------------+---------+---------+---------------
Current Operating Income (Loss) | 82 | 1,069 | NA
---------------------------------------+---------+---------+---------------
% | 0,8 % | 10.1 % |
---------------------------------------+---------+---------+---------------
Net Income (Loss) - Group's Share | 745 | 698 | + 6.7 %
---------------------------------------+---------+---------+---------------
% | 7.3 % | 6.6 % |
---------------------------------------+---------+---------+---------------
(*) On February 12, 2013 the Board of Directors approved the
Financial Statements for the year 2012.

SYSTRAN's consolidated sales amounted to 10.18 million Euros in 2012, adecreaseof 3.8% as compared with 2011. This decrease is for the most part due totheslowdown of the activity of SYSTRAN Software Inc., which is partiallyoffset bythe favorable impact of the Euro-US Dollar foreign exchange rate.

In 2012, salaries and wages increased by 3.3% mainly due to the expansionof thesales team in France. Consolidated other expenses increased by 6.7% and canbeattributed to our US subsidiary and the negative impact of Euro-US Dollarforeign exchange rate. During this period a tax credit for researchactivitiesaccounted for 774 thousand Euros versus 1,011 thousand Euros in 2012.

Considering the above, current operating profit amounted to 82 thousandEuros ascompared with 1,069 thousand Euros in 2011.

The operating income amounted to 14 thousand Euros as compared with 841thousandEuros in 2011. The Company recorded positive financial income from gainsandinterest earned on investments totaling 567 thousand Euros. Consolidatednetincome amounted to 745 thousand Euros versus 698 thousand Euros in 2011.

Total shareholders' equity amounted to 14.8 million Euros as compared with15.2million Euros as of December 31, 2011. The Company has no significant debtsandthe Company's net cash position amounted to 22.9 million Euros at December31, 2012, as compared with 22.3 million Euros on December 31, 2011. Groupdebtamounts to 0.4 million Euros as compared with 0.2 million Euros as ofDecember31, 2011.


Year 2012 Activities


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In % In % Annual Change
Consolidated Accounts 2012 of total 2011 of total 2012/2011
(in KEUR)
---------------------------------------------------------------------------
Software Publishing 5,051 49.6% 6,138 58.0% -17.7%

Professional Services 5,129 50.4% 4,449 42.0% +15.3%
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Consolidated Sales 10,180 100.0% 10,587 100.0% -3.8%


SYSTRAN's consolidated sales amounted to 10.2 million Euros in 2012, adecreaseof 3.8% as compared with 2011, divided between 5.1 million Euros forSoftwarePublishing and 5.1 million Euros for Professional Services.

During the year, license sales totaled 5.1 million Euros and represent50% oftotal sales. This is a decrease of 18% as compared with 2011,attributable tothe decline in sales of Desktop and Server Products to corporatecustomers andthe US Government.

Professional Services sales totaled 5.1 million Euros and represent 50% oftotalsales. This is an increase of 15.3% as compared with 2011, largely dueto theincrease of the co-funded research and development activity inFrance.Professional Services sales to corporate customers and the USGovernment areincreasing despite the slowdown in the US.More than half of all sales are generated in North America.Sales aredistributed as follows:


-----------------------------------------+-----------+-----------
By geographical area of asset location | Year 2012 | Year 2011
(in thousands of Euros) | |
-----------------------------------------+-----------+-----------
Europe | 4,474 | 4,103
-----------------------------------------+-----------+-----------
North America | 5,706 | 6,484
-----------------------------------------+-----------+-----------
Total Sales | 10,180 | 10,587
-----------------------------------------+-----------+-----------


Outlook

In 2013 SYSTRAN plans to expand the sales team to develop revenuein allbusiness segments. SYSTRAN will also launch new cloud services tocomplement itsline of products and services for corporate customers.

As of December 31, 2012 unearned revenue from license sales amounted to1.5million Euros as compared with 0.9 million Euros at December 31, 2011.

As of December 31, 2012 total work orders for Professional Servicesamounted to1.8 million Euros as compared with 2.0 million Euros at December 31,2011.SYSTRAN also expects a decrease of Professional Services from the USGovernmentand co-funded projects in France.



Dispute with the European Commission

On March 4, 2011, the European Commission brought an appeal before theCourt ofJustice against the judgment of the General Court which wasdelivered onDecember 16, 2010 (case T-19/07). On November 8, 2011, the Courtinformed theparties that the written procedure was closed and a hearing took place onApril19, 2012.

On November 15, 2012, the Advocate General proposed that the Court ofJusticeshould set aside the judgment of the General Court by which that courtorderedthe Commission to pay SYSTRAN a lump-sum amount of 12 millionEuros ascompensation for the material damage sustained by it. The AdvocateGeneralproposes that the Court of Justice should, primarily, set aside thejudgment ofthe General Court and itself give judgment in the case, declaringthat theaction based on non-contractual liability brought by SYSTRAN and itssubsidiaryis inadmissible. In the alternative, he proposes that the Court ofJusticeshould set aside the judgment of the General Court and refer the caseback toit. As of today, the Court has not provided any further informationon thejudgment date.

About SYSTRAN

SYSTRAN is the market leading provider of language translation softwareproductsand solutions for the desktop, enterprise and Internet.

Use of SYSTRAN products and solutions enhance multilingualcommunication andincrease user productivity. SYSTRAN delivers real-time languagesolutions forsearch, content management, online customer support, intra orintercompanycollaboration, and eCommerce.

With the ability to facilitate communication in 52+ language combinationsand in20 vertical domains, SYSTRAN's software is the choice of leadingglobalcorporations, portals and public agencies.

SYSTRAN has been pioneering advances in machine translation for overfourdecades. Its latest achievement, SYSTRAN Hybrid MT, combines thepredictabilityand language consistency of rule-based machine translation with thefluency ofstatistical MT.

SYSTRAN is headquartered in Paris, France with a North American officelocatedin San Diego, California, USA.

SYSTRAN (Code ISIN FR0004109197, Bloomberg: SYST NM, Reuters: SYTN.LN) islistedon EuroNext Paris, Compartiment C.

For more information, visit www.systransoft.com



Revenue for the first quarter 2013 ending on March 31, 2013 will beannounced onMay 3, 2013.


This Press Release is available for download at:http://www.systransoft.com/systran/investors/press-releases




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(In KEUR) Year 2012 Year 2011 Year 2010 Year 2010
(12 months) (12 months) (12 months) (12 months)
Restated ((1)) Published
( )
---------------------------------------------------------------------------
Net sales 10 180 10 587 8 934 8 934
---------------------------------------------------------------------------
Cost of sales and other (3 272) (2 874) (3 189) (3 189)
external expenses

Wages and salaries (7 089) (6 860) (5 521) (5 521)

Taxes and duties (235) (224) (207) (207)

Depreciation and (342) (346) (311) (311)
amortization (net)

Other income / (expenses) 840 886 768 (102)
((2))
---------------------------------------------------------------------------
Current operating income 82 1 069 474 (396)
---------------------------------------------------------------------------
Other operating income 26 0 12 332 12 332

Other operating expenses (94) (228) (12 563) (12 563)
---------------------------------------------------------------------------
Operating income 14 841 243 (627)
---------------------------------------------------------------------------
Net cost of debt 528 346 130 130

Other financial income 55 7 86 86

Other financial expenses (16) (46) (76) (76)
---------------------------------------------------------------------------
Net financial income 567 308 140 140
---------------------------------------------------------------------------
Profit before tax 581 1 148 383 (487)
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Income tax expenses ((1)) 164 (450) (301) 569
---------------------------------------------------------------------------
Profit from operations 745 698 82 82
---------------------------------------------------------------------------
Minority interest 0 0 0 0
---------------------------------------------------------------------------
Net income / (loss) - 745 698 82 82
Group's share
---------------------------------------------------------------------------
Earning / (loss) per share
On the basis of the average Year 2012 Year 2011 Year 2010 Year 2010
number of shares in
circulation:

- Number of common shares 7,663,145 7,845,088 8,054,870 8,054,870

- Euros per share 0.10 0.09 0.01 0.01
---------------------------------------------------------------------------

(1) Restated presentation of the tax credit for research activities
(from «income tax expenses» to « other income »).

(2) A tax credit for research activities in the amount of 1,011
thousand Euros was accounted for at December 31, 2011 in other current
revenues, whereas the tax credit for research was accounted for in
corporate taxes in the previous financial consolidated statements.

SYSTRAN - Annual results for the year 2012:

http://hugin.info/141962/R/1678331/547730.pdf



This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: SYSTRAN via Thomson Reuters ONE[HUG#1678331]

Contact:
Contact

Dimitris SABATAKAKIS
Chairman & CEO
Telephone: +33 (0)1 44 82 49 00
Fax: +33 (0)1 44 82 49 01
Email: Email Contact

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