Video compression specialist ATEME announced 2017 revenue of €49.6 million (~$61.8M USD), an increase of 29.3% versus full year 2016. At a constant exchange rate, year-over-year growth was even greater at 32.5%.
On a quarterly basis, Q4 2017 had revenue of €16.4 million, a 38.3% increase over Q4 2016.
Management called attention to 2017 representing the sixth straight year of revenue growth. Annual revenue increases averaged 23% per year during 2011-2015, and have accelerated since. In a related observation (and given the growth stats, perhaps justified), ATEME has adopted the tag line, “the emerging leader of video delivery.”
In its press release, ATEME also highlighted a strong Q4 in the EMEA region and a multi-million software contract with a major US service provider.
Revenue by Geography:
ATEME benefited from growth in all regions during 2017.
- Revenues for the EMEA region during the year were €18.6 million, a 14.1% increase 2016. As a percentage of total sales, EMEA was 38.4% of revenue during 2017, which compares to 43.5% during 2016.
- The USA / Canada region contributed revenue of €15.7 million, a 31.4% rise over the year-earlier period. USA / Canada was 32.4% percent of total sales in the period versus 31.9% during 2016.
- Latin America was responsible for €7.9 million of revenue during 2017, a substantial increase of 90.4% versus 2016. For 2017, Latin America accounted for 16.5% of total sales, compared to 11.2% during 2016.
- Asia Pacific accounted for €6.1 million of revenue, an increase of 22.3% versus the full year 2016. The Asia Pacific region contributed 12.7% of total sales during 2017, versus 13.4% during 2016. This adds to growth of 80% in 2016.
The growth in the Latin America region was attributed to strong demand for digital terrestrial distribution solutions.
Commenting on the 2018 outlook, ATEME President Michel Artieres stated, “The outlook for 2018 remains positive and we aim to deliver further healthy growth in all regions. We will continue to focus on developing or acquiring new solutions aimed at expanding our addressable market beyond the video headend segment, downstream to the distribution network.” The reference to ‘acquiring new solutions’ may suggest some upcoming corporate initiatives on the part of ATEME.
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