NETGEM (EPA:ALNTG) - +6% gross profit growth in 2016, Voice Control with Amazon and SoundBox at Mobile World Congress

Transparency directive : regulatory news

24/02/2017 07:30

+6% gross profit growth in 2016
Voice Control with Amazon and SoundBox at Mobile World Congress

Paris-La Défense, February 24th, 2017

Consolidated gross profit, activity and outlook

In EUR million - consolidated  12 months 2016   12 months 2015   Change
Gross profit (unaudited)           27.4             25.8          +6%

For the year ended December 31, 2016, Netgem announces a consolidated gross
profit (unaudited) of EUR 27.4 million, up 6% compared to 2015, confirming the
positive trend of the first half of 2016 as announced previously. On a full
year basis, Netgem expects a significant growth of its net results compared to
2015.

Gross profit for the last two months of the year of the Vitis Fiber-to-the-Home
and content business is not consolidated in the reported figures. For
illustrative purposes only, should the Vitis hive-down transaction have taken
place before 2016, the Group estimates that its full year gross profit (B2B
only) would have reached EUR 26.4 millions in 2016(1).

From now on, to better reflect the transition toward software and services,
Netgem will communicate simultaneously on consolidated revenue and gross profit
on a quarterly basis and has adjusted its financial communication calendar
accordingly. Even though most of the new business is now software and services
oriented, this transition is a multi-year process for the existing business,
and variations of revenue and gross profit on a quarterly basis are still to be
expected.

(1) Because of its nature, such pro forma financial information addresses a
hypothetical situation and, therefore, does not represent the company's actual
financial position or results.

Significant events and transactions

At Mobile World Congress starting in Barcelona on the 27th of February, Netgem
will present two new innovations in its smart home roadmap:

1) Voice Control with Amazon: Netgem has been actively working with Amazon to
   integrate the Alexa(r) service in its platform, as a new way of enhancing
   the user experience by allowing consumers to simply control their
   entertainment with Amazon Echo(r) devices or directly with their
   Smartphones;

2) SoundBox: Netgem will present the first connected speakers to embed
   set-top-box technology, called SoundBox. By combining 2 devices into one,
   Netgem intends to simplify the consumer  digital life and offer Service
   Providers new revenue opportunities. Service Providers will be able to
   source SoundBox from Netgem, or from consumer electronics partners under
   license.

These two innovations will contribute to Netgem strategy to extend the reach
and value of its software platform at the heart of the Connected Home.

To support SoundBox, the Netgem Home Platform has been enhanced to offer
multi-room, multi-source music services, through a software license agreement
resulting from a strategic investment in a French Tech startup called Voxtok,
which has been developing this technology over the last 3 years.

Speaking about the Voxtok investment, Christophe Aulnette said : "The French
Tech ecosystem is very dynamic in the Internet of Things space. Such targeted
investments give us a sensible way to reinforce our product portfolio, while
supporting the growth of these companies".

Joel Reboul, CEO of Voxtok added "this investment from Netgem will give us an
efficient access to the Telecom market, which has a very long and demanding
sales cycle for startups".

The Group is continuing its share buyback program and now owns about 7.6% of
its capital.

Calendar of Financial Communication
- Results 2016:                        April 6, 2017, before market opening
- Revenue and gross profit Q1'2017:    May 3, 2017, before market opening
- Annual shareholders' meeting:        June 1st, 2017
- Revenue and results for H1 2017:     July 28, 2017, before market opening
- Revenue and gross profit Q3'2017:    October 13, 2017, before market opening

About Netgem

We offer a software platform to connect objects to improve the daily life of
consumers and families.
Service Providers around the world use our Connected Solutions to deliver
innovative digital services to their Customers.
Our #TelcoTV solution offers an intuitive multi-screen navigation to the
content consumers love. It is used by more than 5 million active users,
customers of more than 20 service providers in Europe, Asia and South America
as part of multi-play service bundles. Netgem is listed on NYSE Euronext Paris
Compartment C (ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: NTG FP)

About Voxtok

Voxtok provides the best music experience to Audio and TV Markets. Voxtok
designs from high-end to mass-market modern audio solutions based on its audio
entertainment suite, Voxtok Music. It is available for operators and
manufacturers, bringing a real audio ecosystem, which combines Content &
Services, Products and technologies. Voxtok has been labelled as an innovative
audio company in a tribute to french masters of High-Definition audio. See (in
french) " Hommage aux Maîtres Français du son haute définition, De Georges
CABASSE à Jean-Michel JARRE ". Voxtok has been named a 2015 CES Innovation
Award Honoree for High Performance Home Audio/Video. Voxtok operates from
France (R&D) and Asia (Taïwan).

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NETGEM (EPA:ALNTG) - +6% gross profit growth in 2016, Voice Control with Amazon and SoundBox at Mobile World Congress

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