财务公告

Significant Increase in 2010 Results

Paris, March 28, 2011 – StreamWIDE (FR0010528059 – ALSTW), the specialist in next generation, value-added telephony solutions for telecom carriers, announces a 2010 operating profit of €2.3 million and net profit of €2.0 million, up a substantial €1.9 million each compared to 2009.

Revenue

The Group’s revenue increased sharply in 2010, by +€3M, of which +€1.6M came from France and +€1.4M from Exports, primarily in the North American zone where the Group recorded a first major contract with a Canadian cable operator. This fine performance was largely due to license sales, reflecting the confidence StreamWIDE’s main clients have in the Group, but it was also due to maintenance revenue, which represents growing recurrent revenue. It can also be explained by the added value of the innovations StreamWIDE provides to telecom carriers to operate new messaging-based services (in particular, visual voicemail for smartphones and tablets).

Results

Results for the year to December 31, 2010 were, for the first time, drawn up in accordance with IFRS norms. The main impact of this change lies in the writing down of Research Tax Credits, which were entirely written down as taxable income over the period under French accounting norms but are written down as deferred income under IFRS norms. These Research Tax Credits totaled €0.7M and €0.8M respectively for 2010 and 2009. All else being equal, results are therefore €0.6M lower in 2010 and €0.8M lower in 2009 under IFRS than they would have been under the previously-used French norms.

For the year to December 31, 2010, there was a positive operating profit of €2.3M, compared to €0.4M in 2009. This good performance illustrates the Group’s ability to implement considerable leverage on its profitability thanks to a tight control over operating costs within a context of strong growth.

Thus, excluding the impact of inventory changes (non-recurrent shipment delays at the end of 2009), operating costs only increased by €0.3M (4.8%). In particular, the payroll and workforce (excluding those devoted to R&D) remained stable over the period.

The development costs capitalized in 2010 represent a gross total of €2.5M. Once depreciation of €0.4M is taken into account, the net total was €2.1M, a similar figure to 2009. Furthermore, a Research Tax Credit draw-down of €0.1M is also written down in 2010 results – there had been no significant impact in 2009.

The capitalization of the loss carryforwards of the US subsidiary, which achieved operational breakeven, allowed the Group to limit the impact of its consolidated net tax burden in 2010, by recording positive income of €0.5M.

Financial Structure

At December 31, 2010, the total balance sheet stood at €14.3M, versus €11.3M a year earlier. This improvement was essentially due to non-current assets (capitalization of R&D expenses) and a strengthened cash position at the end of 2010. The Group’s net cash flow was back in the black in 2010, with a net surplus of €1M (versus a negative €1.3M in 2009), giving the Group a net cash position of €3.4M at December 31, 2010.

The Group continued to record no debt over the period while shareholders’ equity increased by €1.9M, primarily as a result of the 2010 annual results.

Outlook

The Group’s participation in the 2011 Mobile World Congress (MWC) trade fair in Barcelona enabled it to validate its innovation strategy. The success recorded by new products such as StreamWIDE Global Communications (SGC) allows StreamWIDE to foresee further medium-term growth opportunities. However, within the current context of poor visibility, the Group remains cautious but confident regarding the 2011 annual trend.

The reorganization of the Sales and Presales departments implemented at the end of 2010 should also allow StreamWIDE to optimize its France and Export sales resources, which represents further substantial potential.