Miranda Technologies Inc.
TSX : MT

Miranda Technologies Inc.

May 07, 2008 06:00 ET

Miranda Reports Sales and Net Income Increases for First Quarter 2008

MONTREAL, QUEBEC--(Marketwire - May 7, 2008) - Miranda Technologies Inc. (TSX:MT), a global developer, manufacturer and marketer of high-performance hardware and software for the television broadcast industry, today reported results for the first quarter of its 2008 fiscal year ended March 31 2008.

First-Quarter Financial Highlights

- Sales increase of 21% to $25.5 million, compared to $21.0 million in 2007

- On a constant currency basis, sales increased by 35%

- Net income of $3.5 million, up from $0.9 million for the first quarter of 2007

- EPS of 14 cents, up from 4 cents

- EBITDA(i) increase to $5.3 million from $1.7 million

(i) EBITDA is a Non-GAAP measure. See the comment on Non-GAAP Financial Measures which follows.

"We are pleased with this solid start to 2008 which builds on the positive results achieved during the second half of last year", commented Strath Goodship, President and Chief Executive Officer of Miranda Technologies Inc. "Sales gains reflected strength in all geographic areas on a constant currency basis, particularly in international markets."

"Demand for our equipment remains strong globally as the migration to High Definition accelerates and all segments of the television industry transform their business models to capture new revenue streams and deliver services more cost effectively", he added.

"We launched a series new products at the National Broadcasters Association (NAB) show in April in Las Vegas. We are pleased with the reception they received and believe that they will have a positive impact on our performance going forward."

Revenue

Sales for the first quarter of 2008 were $25.5 million, up 21% from $21.0 million during the first quarter in 2007. On a constant currency basis sales showed a 35% growth over the same period last year.

Sales in Canada and Other countries increased by 127% and 28% respectively compared to the previous year. Sales in the United States declined by 1% over last year but increased by 15% on a constant currency basis. United States and Other countries represented 38% and 49% of the Company's total sales, compared to 47% and 46% for the same period in 2007.

Growth continued to be fuelled by the increased activity for high-definition build-outs, as well as the success of our products such as multiviewers, notably the Kaleido-X.

Gross Margin

Gross margin as a percentage of sales was 58% for the first quarter of 2008 compared to 59% in 2007. The slight decrease is mainly attributable to product and customer mix compared to last year. Compared to the previous three quarters, gross margin has increased by 2% points.

Operating Expenses

Selling, General & Administrative expenses (SG&A) increased by 4 % in the first quarter to $8.2 million compared to $7.9 million in 2007. The main increase was in selling and marketing costs, reflecting the higher level of sales in the current period.

R&D investments for the quarter increased by 3% compared to the same period in 2007 and represented 17% of sales compared to 20% in 2007. This level of investment is within the planned range established by management and will continue to allow Miranda to pursue its aggressive development plans and improve the speed of new product introductions.

A foreign exchange gain of $1.8 million was recorded in the quarter compared to a gain of $0.1 million in the previous year. The majority of the gain is the unrealized portion that relates to the translation of integrated foreign subsidiaries and net assets held in foreign currencies.

The exchange gain favourably impacted earnings per share by 5 cents in the quarter.

Net Income

Net income for the period was $3.5 million compared to $0.9 million in the same period last year, translating into fully diluted EPS of 14 cents compared to 4 cents.

EBITDA was $5.3 million for first quarter of 2008, compared to $1.7 million for the same period in 2007.

Liquidity and Capital Resources

Cash, cash equivalents and temporary investments of $75.7million are held in AAA and R1 rated instruments issued mainly by Canadian chartered banks and federal Crown corporations. The Company has no exposure to any asset-backed securities.

Other Corporate Highlights

During the quarter, Miranda took several steps designed to strengthen its competitive position and improve operating efficiency:

- As previously announced, Mr. Rene Vachon was appointed Executive Vice-President, Corporate Development effective February 20, 2008. His mandate is to focus further on acquisitions and strategic alliances. Mr. Mario Settino was appointed Chief Financial Officer to succeed Mr. Vachon on the same date.

- A new SMT line was implemented, allowing us to consolidate the remaining manufacturing operations in the UK, expand our Montreal production capacity and virtually remove our dependency on external capacity.

"We believe our results announced today demonstrate once again that Miranda is well positioned to succeed as the global broadcast equipment market continues to evolve", concluded Mr. Goodship.

Miranda Technologies' 2007 Annual General Meeting takes place today, May 7, 2008, at 10 AM (ET) in the Salon Les Amis, Musee des Beaux-Arts de Montreal, 1380 Sherbrooke Street West, Montreal, Quebec, H3G 1K3.

Conference call

Miranda Technologies Inc. (TSX:MT) will hold a conference call with financial analysts to present its first-quarter 2008 results on Wednesday, May 7, 2008, at 2:00 PM (ET). Media and other interested parties are invited to join the conference call in listen-only mode.



DATE: Wednesday, May 7, 2008

TIME: 2:00 PM Eastern Time

CALL: (514) 807-8791 (for all Montreal and overseas participants)
(800) 814-4941 (for all other North American callers)
(Please dial in 15 minutes before the conference begins)

WEBCAST: On line at www.miranda.com or www.marketwire.com.


Participants should take note that the conference will be held in English.

The web cast of the conference call will be available for a period of 90 days at www.miranda.com and www.marketwire.com. A recording of the conference call will also be available from 4:00 PM on Wednesday, May 7, 2008 to 11:59 PM on Wednesday, May 14, 2008 and can be accessed by dialling 1-877-289-8525 and entering the pass code 21270305# on your telephone keyboard.

Non-GAAP Financial Measures

We use EBITDA (earnings before interest, taxes, depreciation and amortization) to compare our operating results from one period to another. EBITDA is not an earnings measure recognized by GAAP and does not carry standard prescribed significance for GAAP. Our method for calculating EBITDA may differ from that used by other companies under the same designation. The reader is advised that EBITDA should not be substituted for determining net income as an indicator of operating results in line with GAAP, neither for cash flows from operating and investing activities as a measure of liquidity and cash flows. The financial indicator that conforms with GAAP and is the closest to EBITDA is net income.

Forward-looking statements

This media 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 uncertainties. Consequently, results could differ materially from the Company's expectations. Risks that could cause results to differ materially from Miranda's expectations are discussed under the heading Risk Factors in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release represent Miranda's current expectations and, accordingly, are subject to change. However, the Company disclaims any intention and assumes 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.

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 HD broadcast environment. This equipment allows customers to generate additional revenue while reducing costs through more efficient distribution and management of content as well as the automation of previously manual processes. Miranda employs over 400 people at its Montreal headquarters and in its facilities located in Wallingford (UK), Springfield (New Jersey, USA), Paris (France), Tokyo (Japan), Beijing (China) and Hong Kong. Miranda is listed on the Toronto Stock Exchange.

The selected consolidated financial information set out below for the first quarter of the fiscal year ending December 31, 2008 is unaudited, presented in Canadian dollars and prepared in accordance with Canadian generally accepted accounting principles. The following information should be read in conjunction with the Company's consolidated financial statements and notes thereto, which will be filed on SEDAR.



MIRANDA TECHNOLOGIES INC.
Consolidated Balance Sheets

March 31, 2008 and December 31, 2007
(In thousands of Canadian dollars)

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March 31, December 31,
2008 2007
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(Unaudited) (Audited)

Assets

Current assets:
Cash and cash equivalents $47,652 $47,146
Temporary investments 28,021 27,890
Accounts receivable 22,904 22,442
Inventories 17,721 14,580
Income taxes and tax credits receivable 5,553 4,006
Prepaid expenses 1,249 807
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123,100 116,871

Tax credits receivable - 449
Capital assets 15,009 13,656
Intangible assets 5,739 6,186
Goodwill 3,933 3,933


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$147,781 $141,095
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Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable and accrued charges $15,042 $13,644
Deferred revenue 2,743 1,958
Income taxes payable 1,387 740
Future income taxes 2,738 2,738
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21,910 19,080

Deferred revenue 2,007 2,055
Future income taxes 587 477

Shareholders' equity:
Share capital 112,089 112,088
Contributed surplus 2,802 2,465
Retained earnings 8,386 4,930
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123,277 119,483

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$147,781 $141,095
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MIRANDA TECHNOLOGIES INC.
Consolidated Statements of Income
(Unaudited)

Three-month periods ended March 31, 2008 and 2007
(In thousands of Canadian dollars, except per share amounts)

-------------------------------------------------------------------------
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2008 2007
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Sales $25,491 $21,029

Cost of sales 10,738 8,650
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14,753 12,379

Operating expenses:
Selling, general and administrative 8,243 7,905
Research and development 4,305 4,166
Research and development tax credits (1,100) (999)
Interest (669) (729)
Foreign exchange gain (1,770) (100)
Stock-based compensation 337 252
Amortization of intangible assets 447 447
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9,793 10,942

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Income before income taxes 4,960 1,437

Income taxes:
Current 1,394 584
Future 110 (35)
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1,504 549

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Net income $3,456 $888
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Net earnings per share:
Basic $0.14 $0.04
Diluted 0.14 0.04

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Basic weighted average number of shares
outstanding 24,804,720 24,725,976
Diluted weighted average number of shares
outstanding 25,101,258 25,119,436

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MIRANDA TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(Unaudited)

Three-month periods ended March 31, 2008 and 2007
(In thousands of Canadian dollars)

-------------------------------------------------------------------------
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2008 2007
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Cash flows from operating activities:
Net income $3,456 $888
Adjustments for:
Depreciation of capital assets 543 505
Amortization of intangible assets 447 447
Stock-based compensation 337 252
Future income taxes 110 (35)
Effect of exchange rates on cash and cash
equivalents (798) 81
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4,095 2,138

Net change in non-cash balances related to
operations (2,361) (2,344)
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1,734 (206)

Cash flows from financing activities:
Issuance of share capital 1 57

Cash flows from investing activities:
Additions to capital assets (1,896) (825)
Net (decrease) increase in temporary investments (131) 22,179
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(2,027) 21,354

Effect of exchange rates on cash and cash
equivalents 798 (81)

Effect of comprehensive income on cash and cash
equivalents - (14)

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Net increase in cash and cash equivalents 506 21,110

Cash and cash equivalents, beginning of period 47,146 40,378

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Cash and cash equivalents, end of period $47,652 $61,488
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Cash and cash equivalents are comprised of:
Cash $27,051 $10,857
Cash equivalents 20,601 50,631

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$47,652 $61,488
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Contact Information

  • Miranda Technologies Inc.
    Mario Settino
    Chief Financial Officer
    514-333-1772
    www.miranda.com