1) Reminder on the consolidated statements of September 30, 2012
The audited consolidated sales turnover of the fiscal year F-12, ended on September 30, 2012, reaches the amount of 12,564 k€, stable within -1% with respect to the previous fiscal year. The operating result is negative at (568 k€), versus a profit of 116 k€ during the previous period, but the net profit is balanced at +217 k€ versus the 2,205 k€ last year, which were reinforced by the regularization concerning the recording of our Research Tax Credit at twenty-one months.
After a year 2011 marked by the growth of sales turnover, the corporation has maintained its rhythm of investment, while suffering in parallel from the slowing-down of the world economy and the shifts of customers’ projects.
The Corporation must adapt themselves to two changes impacting their business models leading to an increase of their need for working capital. They are on the one hand the growing postponement of payments for licenses as royalties on fabrications by customers, on the other hand the growth of the activity of integration services with delivery of fabless real circuits (sales turnover grown 100% in 2011 and 50% in 2012).
For funding this phase of investment (with a flow related to the operating transactions for -1 M€), the company has, during the fiscal year, acted upon two levers: the access to a zero-rate loan for innovation by Oseo for 1 M€, and the grant of bank short-term credits for helping to finance its claim for 2011 Research Tax Credit of 1.2 M€ (expected over this first quarter of 2013, that is with one year of lag-time due to our shifted fiscal year). The net debt thus has increased from 3.5 M€ to 5.1 M€ over the fiscal year, with a ratio of financial debt of 42% of total capital.
2) Status of the cash position and actions undertaken
The concerns for cash flow have translated into postponements of milestones estimated at 1.7 M€ on January 31, 2013, including 1 M€ of fiscal and social debts, which have been granted a staggering agreement over 9 months. The balance of December 2012 wages, the payment of which had been shifted, has been entirely paid during January 2013.
The statutory auditors nonetheless have maintained the alarm procedure (phase 3) in early January 2013 and have not been in a position to certify the financial statements of the fiscal year closed on September 30,2012. On the date of writing of the report, the principle of operating continuity was actually not secured from the fact of the cash flow concerns encountered by the group.
The various actions for reinforcing the cash position so as to enable lifting the alarm procedure have been presented to the General Assembly on February 13 and approved; they address:
- the interventions for cashing-in the 2011 tax credit for research, as well as for the pre-financing of the 2013 tax credit for the competitiveness of enterprises,
- the approaches in process for reinforcing their total of equity or security as participative loans,
- the delegation of competency to the board of directors to realize a capital increase.
The terms and conditions for the operation of capital increase are not settled yet and shall be communicated later, as well as the progress on the whole of actions aimed at ensuring the continuity of operation.
The stakes today for the corporation are to validate by commercial successes the worth of their assets, while maintaining a critical size, which might enable them to offer a range of products and services wide and attractive enough.
For the board of directors, the Executive Chairman.
About Dolphin Integration
The company occupies a key position with sustainable growth in the strategic and deverticalized industry of design for Microelectronics.
DOLPHIN Integration SA with social Capital of 1,295,120 € – www.dolphin.fr – ISIN: FR0004022754/ ALDOL – Bloomberg: ALDOL FP – Reuters: ALDOL.PA – ICB 9576. Semiconductors.