Lte | 2021-07-27

Streamwide: H1 2021 REVENUE: €7.9M (up 20%)

Source: Streamwide

eligible for the French PEA-PME), the expert in critical communications software solutions, announces revenue of €7.9 million for the first half of 2021, up a considerable 20%.

Annual profitable growth objectives confirmed: as announced in the 2020 annual results on 22 March 2021, revenue is on the right track and the strong growth dating back to 2019 continues.


In line with this momentum, first half 2021 revenue was once again up significantly (+20%). This sustained growth (+€1.3 million) remains driven by the new team on mission and team on the run critical communications platforms.

STRONG GROWTH DRIVEN BY NEW LICENCES

Continued strong growth for new solutions: the new team on mission and team on the run critical communications platforms, whose revenue increased by €1.4 million (+35%) in the first half of 2021, now account for nearly 69% of the Group’s total revenue (an increase of 8 points compared with 2020).

This growth is attributable mainly to the ongoing impact of the partnership with the Airbus Defence and Space's Secure Land Communications (SLC) business unit, new contracts and projects with French administrations and private companies, won or rolled out in 2021, and the deployment and ramp-up of the PCSTORM project.

This came on the back of a significant order for new PCSTORM user licences during the first half of 2021, to support the project’s deployment and scale-up.


Also noteworthy was the gain of a new contract from a French government department, initial orders on which were received at the end of 2020, thereby impacting revenues for the first half of 2021.
The €5.4 million in “platforms” revenue for the first six months of 2021 breaks down between licences (€3.5 million) and maintenance flows (€0.2 million), which were up €1.6 million (+84%) and €0.2 million (x3, following the launch of various platforms over the period) respectively. Services (€1.6 million) were down €0.4 million over the first half of 2021 following the various operational phases of the relevant projects (tests and integration since 2018, and user roll-out from 2021).


Steady resilience of the legacy business: revenue for the legacy business (solutions for telecom operators) was relatively stable in the first half of 2021 (-€0.1 million) and still represents 31% of first half revenue (€2.5 million). Licence sales, which are by definition non-recurring, increased by €0.2 million to €0.7 million in the first six months of 2021, following extensions of installed bases and a new contract won in North America. Legacy services (€0.3 million) were down €0.4 million over the first half of 2021, following the completion of a project with a French operator started in the first half of 2020. Recurring maintenance flows (€1.4 million) were stable compared with the first half of 2020.

 

OUTLOOK: CONFIRMATION OF CONTINUED DEVELOPMENT AND GROWTH IN 2021

Activity on the new team on mission and team on the run solutions was sustained, and defining projects are currently underway in France, Europe and the United States. If the various operational schedules are met, the second half of 2021 should see the Group further strengthen its position as a key player in the critical and secure communications market, enabling it to build its future revenue.
The developments carried out in 2020, particularly those relating to the Advanced Telephony System (replacement of fixed telephony) and Collaboration Tools (audio conferences, video conferences, screen sharing and whiteboarding), integrated into secure and sovereign technical architectures, are real differentiators compared with other existing mass market solutions, thereby opening up new business opportunities for the Group.

The Group’s robust financial structure enables it to support growth by building up its technical and support teams. Some fifty positions are open through the Group’s French, Romanian and Tunisian subsidiaries. The increase in the workforce is under control and the resulting effect over time allows the Group to continue to keep its future profitability under control.