Home | Contact us | Site map | Careers | Q&A | Advantages of Québec |
  SGF Profile  
  Investment Groups  
  Our Investments  
  Documentation Center  
Press Room
Annual Report

Press Room

Press Releases 




Personal accounts 


2008  |  2007  |  2006

Miranda reports third quarter results

Montréal, November 10, 2006 - A global developer, manufacturer and marketer of high-performance hardware and software for the television broadcast industry, today reported results for the third quarter and first nine months of its 2006 fiscal year, ended September 30. 

Third Quarter Highlights

  • $25.5 million in sales, a decrease of 5% compared to same period
    in 2005
  • 13% sales growth year to date, compared with 2005
  • Stable net income at $4.3 million
  • Favourable customer reaction to launch of Kaleido-X, a new multi-image platform

In the third quarter of 2006, sales decreased slightly when compared to
the same period in 2005. Revenue for the third quarter totalled $25.5 million,
down 5% from the same period in 2005. As in prior quarters, the strength of
the Canadian dollar against other currencies reduced sales by $1.6 million for
the third quarter compared to the same quarter in 2005.
For the nine-month period ended September 30, 2006, sales grew 13%
compared to the same period in 2005, to stand at $77.9 million. Growth was
experienced across all territories served by Miranda. The Company saw growth
in European sales, which were up 26%, while sales in the Americas and Asia
grew 8% and 10% respectively. In Europe, Miranda successfully completed the
installation of a monitoring and control system at UPC, a leading Dutch
broadcaster. This is the Company's first major deployment of this type of
system in the cable television industry.
"At the IBC (International Broadcasters Convention) show held in Amsterdam
in September, we introduced the Kaleido-X," said Strath Goodship, President
and CEO of Miranda. "The Kaleido-X is a new multi-image platform that extends
the addressable market to our current product line to larger size and higher
value production monitoring walls. The Kaleido-X is particularly interesting
for broadcasters as it combines innovative functions such as multi-room
management and signal routing. Market reaction since IBC has exceeded our
expectations. We anticipate revenue from this product as of this year."
During the quarter, Miranda received orders from important clients such as
ABC (US), ABS-CBN (Philippines), Aliance Atlantis (Canada), CJ Powercast
(Korea), Deutch Welle (Germany), ESPN (US), Gannett Broadcasting (US), NBC
(US), Price Waterhouse (Romania), RFO (France), Showtime (US), Verizon (US)
and Zvezda II (Russia).

In the third quarter, revenues of $0.9 million came from the second
quarter acquisition of VertigoXmedia, a manufacturer of high-end graphics
automation software and systems. Although these results were below forecasts
for the third quarter, as Mr. Goodship pointed out: "At IBC, we highlighted
and received positive feedback from our new VertigoXmedia products. Clients
especially appreciate their integration into our existing Oxtel media playout
series. We are satisfied with the level of orders booked in the third

Net income for the third quarter of 2006 was $4.3 million compared to
$4.2 million for the same period in 2005. Fully diluted, net earnings per
share amounted to $0.17 compared to $0.22 in 2005. If the dilution effect of
going public is taken out of the equation, net earnings per share were stable
compared with same period last year.

For the year to date, net income totalled $11.9 million compared to
$11.4 million in 2005. It should be noted that both figures include after-tax
R&D credits from prior years. These credits amount to $0.5 million in 2006 and
$2.7 million in 2005.

EBITDA totalled $6.5 million for the third quarter of 2006, an 11%
decrease from the third quarter of 2005. As a percentage of sales, EBITDA
stood at 25%, compared to 27% for the same period last year. For the
nine-month period ended September 30, 2006, EBITDA was $18.1 million compared
to $20.1 million in 2005.

Selling, general and administrative expenses increased by $1.6 million or
31% in the third quarter relative to the same period last year. This increase
is due to (1) the costs related to operating a public company; (2) additional
costs related to sales and technical support personnel for the ongoing
expansion of the Company's customer base, and (3) increased marketing and
after-sales service costs.

Research and development (R&D) expenses increased by $0.4 million or 12%
in the third quarter. For the nine-month period ended September 30, 2006, R&D
increased by $2.0 million or 21%, reflecting Miranda's intention to maintain a
high level of investment and thus support future growth. Before tax credits,
R&D expenses were about 15% of sales.

In the third quarter of 2006, operating activities generated cash flow of
about $2.1 million compared to $4.7 million during the same quarter of 2005.
Part of the drop in cash flow is attributable to a planned increase in
inventories aiming at reducing delivery times, improving customer service and
establishing inventories of the components required to comply with new
European Union regulations regarding the reduction in the use of hazardous
substances in electrical and electronic equipment (RoHS). "With regard to market conditions," concluded Mr. Goodship, "we are cautious about the US market. We are seeing an increase in the value and complexity of projects, which means that they take more time to complete. We are also increasingly called upon to provide more services related to the installation and integration of our products."

Forward-looking Statements
This press release contains forward-looking statements reflecting
Miranda's objectives, estimates and expectations. Such statements may be
marked by the use of verbs such as 'believe', 'anticipate', 'estimate',
'looking ahead' and 'expect', as well as the use of the conditional or future
tense. By their very nature, such statements involve risks and uncertainty.
Consequently, results could differ materially from the Company's expectations.
Risks that could cause results discussed herein to differ materially from Miranda's expectations are discussed throughout this MD&A and, in particular, in "Risks and Uncertainties" hereafter and under the heading "Risk Factors" in our Annual Information Form, which is available on SEDAR at www.sedar.com. The
forward-looking statements contained in this press release represent our
current expectations and, accordingly, are subject to change. However, we
disclaim any intention and assume no obligation to update or revise any
forward-looking statement, whether as a result of new information or events or
otherwise, unless required to do so by the applicable securities legislation.

Conference call
Miranda Technologies Inc. will hold a conference call with financial
analysts to present its third quarter 2006 results today at 10:00 a.m.
(Eastern Time). Those interested should call (Montreal or
overseas) or (elsewhere in North America).
The call can also be accessed via a direct broadcast site at the following
addresses: www.miranda.com, www.newswire.ca and www.q1234.com.
Those unable to participate can hear a recording of the call by dialing
and entering the code 21206891(pound key) on the telephone
keypad. This recording will be accessible from 1:00 p.m. on Friday, November
10, 2006 until 11:59 p.m. on Friday, November 17, 2006. The webcast of the
conference call will also be available during a period of 60 days at the web
addresses already mentioned.

About Miranda
Miranda Technologies Inc. (TSX: MT) develops, manufactures and markets
high-performance hardware and software for the television broadcast industry.
Its solutions are purchased by content creators, broadcasters, specialty
channels and television service providers to enable and enhance the transition
to a complex multi-channel digital and HDTV broadcast environment. This
equipment allows customers to generate additional revenue while reducing costs
through the more efficient distribution and management of content as well as
the automation of previously manual processes. As at September 30, 2006,
Miranda employed 407 people at its Montreal headquarters and in its offices
located in Wallingford (UK), Springfield (US), Paris (France), Tokyo (Japan),
Beijing (China) and Hong Kong. Miranda became a public company in
December 2005 and is listed on the Toronto Stock Exchange. For more
information, please visit www.miranda.com.

Home  |  Legal Notice  |  Corporate Policies  | 

 Copyright © SGF 2009