Miranda Reports First Quarter 2012 Results

Marketwired

MONTREAL, QUEBEC--(Marketwire - May 11, 2012) - Miranda Technologies Inc. (MT.TO - News), a worldwide provider of infrastructure, playout and monitoring systems for the television broadcast, cable, satellite and IPTV industry, today reported results for the first quarter ended March 31, 2012.

Financial Highlights: Q1 2012 versus Q1 2011





--  Revenues up 7% to $42.2 million 

--  Gross profit as a percent of sales at 61%, up from 60% in 2011 

--  Net profit of $0.9 million, compared to $2.3 million and adjusted net

    profit(1) of $3.2 million, compared to $1.9 million last year 

--  EBITDA(1) of $3.9 million versus $5.5 million and adjusted EBITDA(1) of

    $6.8 million, versus $5.8 million in 2011 

--  Generated operating cash flows of $5.6 million, up from $4.9 million

    last year 



First quarter revenues totalled $42.4 million, up 7% over 2011. Gross profit remained strong, coming in at 61% of sales. Quarterly EBITDA was $3.9 million or 9% of sales, versus $5.5 million and 14% of sales in the prior year. Quarterly net profit was $0.9 million or 4 cents per fully diluted share, down from $2.3 million and 11 cents respectively in 2011. Adjusted fully diluted earnings per share(1) were 15 cents, compared to 9 cents in 2011. Operating activities generated $5.6 million of cash flows during the quarter, resulting in cash and cash equivalents of $36.6 million, up from $31.4 million as at December 31, 2011.

(1) EBITDA, adjusted EBITDA, adjusted net profit and adjusted earnings per share (EPS) are adjusted non -IFRS financial measures. See section titled "Non-IFRS Financial Measures" which follows for comments and reconciliations.

"We continue to benefit from our industry leading solutions, solid foundation and sound business execution, once again delivering steady revenue growth and strong adjusted net profitability" highlighted Strath Goodship, Miranda's President and Chief Executive Officer. "We are encouraged by the interest and demand for our traditional and new products and we believe that this will continue to have a positive impact on our business."

Other Highlights

"In April, Miranda exhibited at the National Association of Broadcasters (NAB) event in Las Vegas," highlighted Mr. Goodship. "We received a good response for our expanded portfolio of integrated offerings, reflecting our strengthening competitive position. This year, we showcased our solutions to build efficient, scalable workflows that enable broadcasters to cost effectively operate and develop new revenue streams."

Miranda's exhibition booth featured solutions addressing some of broadcasters key concerns including loudness monitoring and correction, signal management and processing, automated content versioning for Video On Demand (VOD) assets and graphics capabilities integrated with traditional and automated playout.

Miranda received two industry awards at NAB, including the Broadcast Engineering Magazine's "Pick Hit" award for the company's new LUMO high-density fiber converter series, along with TV Technology Magazine's "STAR" (Superior Technology Award Recipient) Award for Miranda's iTX Master Control solution.

Year-over-year quarterly operating review: Q1 2012 versus Q1 2011

Revenue

Revenue totalled $42.4 million for the quarter, up 7% over 2011, or 6% on a constant currency basis. Growth was driven by higher sales in most geographies, with the United States, the United Kingdom and Other Countries growing by 8%, 64% and 3% respectively, while sales in Canada were down 40%. Canada, the United States, the United Kingdom and Other Countries generated 5%, 33%, 16% and 46% of quarterly sales respectively.

Recently, the Company announced a key sale to provide product solutions for NBC Olympics production of the 2012 London Games. Other notable recent sales wins include Al Kass TV (Qatar), Arqiva (UK), Astro (Malaysia), DirecTV (USA), Discovery (USA), France TV (France), Hunan TV (China), Okno TV (Russia), TV Globo (Brazil).

Gross Profit

Gross profit as a percentage of sales was 61%, up from 60% last year. The increase over 2011 was due to pricing, product and customer mix.

Operating Expenses

Selling, General & Administrative expenses (SG&A) were $16.5 million for the quarter, versus $15.1 million in 2011. The increase was largely due to $0.8 million of additional expenses related to special projects, including the Company's current review of strategic initiatives, along with higher selling expenses. SG&A as a percentage of sales was 39%, up from 38% last year. SG&A as a percentage of sales was 37%, excluding fees associated with special projects.

Research and Development (R&D) expenses before tax credits were $7.4 million or 17% of sales, compared to $7.6 million and 19% last year. The decrease over the prior year is largely due to lower amortization charges. Quarterly R&D expenses, net of tax credits, were $6.0 million or 14% of sales, versus $6.2 million and 16% of sales last year.

Net finance expense was $1.9 million for the quarter, up from $46 thousand the prior year. The increase was largely due to unfavourable currency fluctuations in the current quarter, compared to last year, and an increase in the remeasurement of liabilities related to cash settled share- based payments.

EBITDA and Net Profit

EBITDA totalled $3.9 million or 9% of sales, versus $5.5 million and 14% respectively last year. Adjusted EBITDA was up 17% over 2011 to $6.8 million, representing 16% of sales.

Net profit was $0.9 million or 4 cents per fully diluted share, compared to $2.3 million and 11 cents respectively in 2011. Adjusted net profit rose 65% over 2011 to $3.2 million or 15 cents per fully diluted share.

Liquidity and Capital Resources

Net operating activities generated $5.6 million of cash flows for the quarter, up from $4.9 million generated in the corresponding period last year. Cash, cash equivalents and temporary investments were $36.6 million at quarter end, increasing from $31.4 million at December 31, 2011.

Outlook

"Broadcasters are actively exploring new ways to adapt to the rapidly changing world of television and Miranda is well placed to help them become more competitive now and in the future," highlighted Mr. Goodship. "With an expanded portfolio of innovative solutions we will continue to capitalize on new prospects. We see continued long-term growth opportunities ahead, putting us in a good position to outperform market growth and drive profitable results."

Strategic Review

The review of strategic alternatives announced on March 21, 2012, is well underway. While the Company is actively exploring its options, no reportable event has yet to occur, nor is there any assurance the process will result in a strategic transaction. The strategic review process is expected to last approximately three months from the original announcement.

Non-IFRS Financial Measures

"Adjusted net profit", "adjusted EPS", "EBITDA" and "adjusted EBITDA" are non-IFRS financial measures:

Adjusted net profit

Adjusted net profit is defined as net profit prior to recognizing share-based compensation costs, foreign exchange gains or losses and other items that do not impact the core operating performance of the Company, such as special project and acquisition-related costs. All adjustments are net of related income taxes.

Adjusted EPS

Adjusted earnings per share or adjusted EPS is the adjusted net profit divided by the weighted average number of shares outstanding at the end of a given period.

EBITDA

EBITDA is defined as net profit before interest expense or interest income, taxes, depreciation and amortization.

Adjusted EBITDA

Adjusted EBITDA is defined as EBITDA prior to recognizing share-based compensation costs, foreign exchange gains or losses and other items that do not impact the core operating performance of the Company, such as special project and acquisition related costs.

Share-based compensation costs are a component of employee remuneration and can vary significantly with changes in the market price of the Company's shares. Foreign exchange gains or losses are a component of finance income or finance costs and can vary significantly with currency fluctuations from one period to another. In addition, other items that do not impact core operating performance of the Company may vary significantly from one period to another. As such, adjusted net profit, adjusted EPS, EBITDA and adjusted EBITDA provide improved continuity with respect to the comparison of the Company's operating results over a period of time.

Our method for calculating adjusted net profit, adjusted EPS, EBITDA and adjusted EBITDA may differ from that used by other companies. Readers are advised that adjusted net profit, adjusted EPS, EBITDA and adjusted EBITDA should not be substituted either for net profit as an indicator of operating results in line with IFRS, neither for cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. A reconciliation of net profit to adjusted net profit and adjusted EPS and a reconciliation of net profit to EBITDA and adjusted EBITDA are presented in the following tables.

Reconciliation of Net Profit to Adjusted Net Profit and Adjusted Earnings per Share





                                               Three Months Ended March 31, 

                                              ------------------------------

(Unaudited, in thousands of Canadian dollars,                               

 except ratios and per share amounts)                   2012           2011 

----------------------------------------------------------------------------

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Net profit                                               928          2,322 

Share-based compensation costs, including                                   

 cash-settled awards                                   1,492            572 

Foreign exchange losses (gains)                          615           (423)

Income taxes recovery relating to the                                       

 resolution of previous years' matters                     -           (642)

Special project costs, including strategic                                  

 review                                                  790              - 

Acquisition-related costs                                  -            108 

Tax effect for above-mentioned items                   ( 600)            12 

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Adjusted net profit                                    3,225          1,949 

Adjusted net profit ( % of revenue)                        8%             5%

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Adjusted earnings per share:                                                

  Basic                                                0. 15           0.09 

  Diluted                                              0. 15           0.09 

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Reconciliation of Net Profit to EBITDA and                                  

 Adjusted EBITDA                                                            

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                                               Three Months Ended March 31, 

                                              ------------------------------

(Unaudited, in thousands of Canadian dollars,                               

 except ratios)                                         2012           2011 

----------------------------------------------------------------------------

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Net profit                                               928          2,322 

Interest expense                                          29            154 

Income taxes expense                                     555            317 

Depreciation of property, plant and equipment            990            944 

Amortization of intangible assets                      1,366          1,802 

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EBITDA                                                 3,868          5,539 

EBITDA (% of revenue)                                      9%            14%

Share-based compensation costs, including                                   

 cash-settled awards                                   1,492            572 

Foreign exchange losses (gains)                          615           (423)

Special project costs, including strategic                                  

 review                                                  790              - 

Acquisition-related costs                                  -            108 

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Adjus ted EBITDA                                       6,765          5,796 

Adjus ted EBITDA (% of revenue)                           16%            15%

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Conference call

Miranda Technologies Inc. (MT.TO - News) will hold a conference call with financial analysts to present its first quarter 2012 results on Friday May 11, 2012 at 9:00 AM (ET). Media and other interested parties are invited to join the conference call in listen-only mode.





DATE:       Friday, May 11, 2012                                            

                                                                            

TIME:       9:00 a.m. Eastern Time                                          

                                                                            

CALL:       (416) 981-9000 (for all Toronto and overseas participants)      

            (800) 709-0218 (for all other North American participants)      

(Please dial in 15 minutes before the conference begins)                    

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



The webcast 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 11:00 AM on Friday, May 11, 2012 to 11:59 PM on Friday, May 18, 2012 and can be accessed by dialling 1-800-558-5253 and entering the pass code 21589690# on your telephone keyboard.

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 Risks and Uncertainties in the Company's Annual Management's Discussion and Analysis, 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 is a leading worldwide provider of hardware and software solutions for the television broadcast, cable, satellite and IPTV industry. Its solutions span the full breadth of television operations, including production, playout, and delivery.

With a wealth of experience in delivering IT-based and traditional television systems, Miranda is uniquely positioned to help customers enhance their facilities, while generating additional revenue, reducing costs and streamlining operations.

For over 22 years, Miranda's growth has been driven by continuous innovation, along with close customer partnerships focused on helping them achieve their business objectives. To deliver this support, Miranda employs approximately 700 people globally, in both developed and emerging markets. Miranda's head office is located in Montreal, and it has regional facilities in the United States, the United Kingdom, France, the United Arab Emirates, Japan, Malaysia, Singapore, Hong Kong and mainland China. A public company since December 2005, Miranda's shares (MT.TO - News) are traded on the Toronto Stock Exchange. More information on the Company can be found at www.miranda.com.





MIRANDA TECHNOLOGIES INC.                                                   

Condensed Consolidated Interim Statements of Financial Position             

(Unaudited)                                                                 

                                                                            

March 31, 2012 and December 31, 2011                                        

(In thousands of Canadian dollars)                                          

                                                                            

----------------------------------------------------------------------------

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                                                   March 31,   December 31, 

                                                        2012           2011 

----------------------------------------------------------------------------

                                                                            

Assets                                                                      

Current assets                                                              

  Cash and cash equivalents                    $      36,633  $      31,367 

  Trade and other receivables                         34,383         42,547 

  Inventories                                         20,959         20,350 

  Income taxes and tax credits receivable              4,058          3,453 

  Prepaid expenses and other                           2,140          2,035 

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                                                      98,173         99,752 

                                                                            

Tax credits receivable                                11,927         11,352 

Property, plant and equipment                         31,824         32,548 

Intangible assets                                     32,715         34,081 

Goodwill                                              44,745         44,745 

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Total assets                                   $     219,384  $     222,478 

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Liabilities                                                                 

                                                                            

Current liabilities                                                         

  Trade and other payables                     $      22,912  $      25,045 

  Provisions                                           1,811          1,762 

  Deferred revenue                                     7,056          6,229 

  Income taxes payable                                 2,219          4,143 

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                                                      33,998         37,179 

                                                                            

Other payables                                           124            391 

Provisions                                             1,628          1,655 

Deferred revenue                                       3,593          3,595 

Deferred tax liabilities                              13,499         14,161 

                                                                            

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Total liabilities                                     52,842         56,981 

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Equity                                                                      

                                                                            

  Share capital                                       98,274         98,221 

  Contributed surplus                                  5,106          5,042 

  Retained earnings                                   63,812         62,884 

  Accumulated other comprehensive loss                  (650)          (650)

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Total equity                                         166,542        165,497 

----------------------------------------------------------------------------

                                                                            

Total liabilities and equity                   $     219,384  $     222,478 

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MIRANDA TECHNOLOGIES INC.                                                   

Condensed Consolidated Interim Statements of Comprehensive Income           

(Unaudited)                                                                 

                                                                            

Three-month periods ended March 31, 2012 and 2011                           

(In thousands of Canadian dollars, except per share amounts)                

                                                                            

----------------------------------------------------------------------------

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                                                      March 31,   March 31, 

                                                           2012        2011 

----------------------------------------------------------------------------

                                                                            

Revenue                                              $   42,416  $   39,797 

Cost of sales                                            16,555      15,840 

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Gross profit                                             25,861      23,957 

                                                                            

Selling, general and administration expenses             16,471      15,084 

Research and development expenses, net of tax                               

 credits of $1,386 ($1,414 in 2011)                       6,021       6,188 

----------------------------------------------------------------------------

Results from operating activities                         3,369       2,685 

----------------------------------------------------------------------------

                                                                            

Finance income                                             (135)       (560)

Finance costs                                             2,021         606 

----------------------------------------------------------------------------

Net finance expense                                       1,886          46 

----------------------------------------------------------------------------

                                                                            

Profit before income taxes                                1,483       2,639 

Income taxes expense                                        555         317 

----------------------------------------------------------------------------

Net profit for the period                                   928       2,322 

----------------------------------------------------------------------------

                                                                            

Other comprehensive income:                                                 

  Foreign currency translation differences for                              

   foreign operations, net of taxes                           -        (155)

                                                                            

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Total comprehensive income for the period            $      928  $    2,477 

----------------------------------------------------------------------------

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Earnings per share:                                                         

  Basic                                              $     0.04  $     0.11 

  Diluted                                                  0.04        0.11 

                                                                            

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MIRANDA TECHNOLOGIES INC.                                                   

Condensed Consolidated Interim Statements of Cash Flows                     

(Unaudited)                                                                 

                                                                            

Three-month periods ended March 31, 2012 and 2011                           

(In thousands of Canadian dollars)                                          

----------------------------------------------------------------------------

----------------------------------------------------------------------------

                                                     March 31,    March 31, 

                                                          2012         2011 

----------------------------------------------------------------------------

                                                                            

Operating activities:                                                       

  Net profit for the period                        $       928  $     2,322 

  Adjustments:                                                              

    Depreciation of property, plant and equipment          990          944 

    Amortization of intangible assets                    1,366        1,802 

    Share-based compensation costs                       1,492          572 

    Net interest expense                                    29          154 

    Income taxes expense                                   555          317 

    Effect of exchange rates on long-term monetary                          

     assets and liabilities                                 76          131 

    Effect of exchange rates on cash and cash                               

     equivalents                                           118          (90)

----------------------------------------------------------------------------

                                                         5,554        6,152 

  Changes in non-cash operating working capital                             

   items:                                                                   

    Trade and other receivables                          8,164        4,435 

    Inventories                                           (609)      (1,294)

    Income taxes and tax credits receivable and                             

     income taxes payable                               (1,408)         (24)

    Prepaid expenses and other                            (105)        (472)

    Trade and other payables                            (3,828)      (2,621)

    Provisions                                              22         (352)

    Deferred revenue                                       825         (364)

----------------------------------------------------------------------------

  Cash generated from operating activities               8,615        5,460 

  Income taxes paid                                     (2,989)        (567)

                                                                            

----------------------------------------------------------------------------

Net cash from operating activities                       5,626        4,893 

----------------------------------------------------------------------------

                                                                            

Investing activities:                                                       

  Proceeds from sale of temporary investments                -        4,999 

  Additions to property, plant and equipment              (266)        (581)

  Interest received                                          9           24 

                                                                            

----------------------------------------------------------------------------

Net cash (used in) from investing activities              (257)       4,442 

----------------------------------------------------------------------------

                                                                            

Financing activities:                                                       

  Repayment of loans and borrowings                          -       (5,776)

  Proceeds from exercise of share options                   53            - 

  Interest paid                                            (38)        (178)

                                                                            

----------------------------------------------------------------------------

Net cash from (used in) financing activities                15       (5,954)

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Effect of exchange rates on cash and cash                                   

 equivalents                                              (118)          90 

Effect of exchange rates on cash and cash                                   

 equivalents related to translation of foreign                              

 operations                                                  -         (121)

                                                                            

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Net increase in cash and cash equivalents                5,266        3,350 

                                                                            

Cash and cash equivalents, beginning of period          31,367       30,486 

                                                                            

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Cash and cash equivalents, end of period           $    36,633  $    33,836 

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Contact:
Miranda Technologies Inc
Source:

Investors and Media
Contacts:
Mario Settino
Chief Financial Officer
Miranda Technologies Inc.
(514) 333-1772

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