Miranda Posts Record Profit
February 20, 2009
(Feb. 20, 2009) MONTREAL, QUEBEC: Miranda Technologies pulled down record income and revenue for 2008. The Canadian TV signal specialist posted net income of $22.7 million on revenues of $130 million for the year ending Dec. 31, 2008. Both numbers were up, 140 and 16 percent, respectively, over the previous year. Diluted earnings per share were 92 cents versus 38 cents in 2007.
Miranda’s (TSX:MT) acquisition of Nvision closed on Dec. 22. The resulting revenues were consolidated into Miranda’s results for only the last 10 days of the year and had nominal impact, the company said.
Miranda bought Nvision, the router/switcher maker in Grass Valley, Calif., for $40 million in cash. Nvision reported revenues of around $34 million over 12 months ending Sept. 30, 2008.
Miranda’s 4Q revenues grew 3 percent over the same period the previous year, to $32.7 million. Net income was up 128 percent, to $7.4 million.
North American sales were down 8 percent from 4Q07, but up 15 percent in other countries. Gross margin was 63 percent, up 7 percentage points, “driven by foreign exchange gains, operational and cost efficiencies, and a more favorable product mix,” the company said.
Investment in research and development was $4.6 million for the quarter, versus $3.6 million in 2007; and accounted for 14 percent of sales for the quarter and the year.
Miranda had $73.5 million in cash and equivalents as of Dec. 31, 2008, including $25 million of restricted cash used as collateral for the Nvision purchase. The company employs about 600 people.
For 2009, Miranda chief executive Strath Goodship said the company would be facing down a difficult year, but it would “remain committed to R&D and will pursue additional strategic growth opportunities, while focusing on strong execution.”
Shares of Miranda were trading at around $5.50 at mid-day on the Toronto Exchange, down from an open of $6.50 in a slide sparked by further bank failure concerns affecting all sectors of the markets.