Miranda Posts Smaller Profit on Reduced Revenues
August 13, 2009
MONTREAL, QUEBEC : Miranda finished its second quarter with $31.1 million in sales, compared to $34.2 million a year ago. Net income was $1.3 million for the quarter ending June 30, 2009, compared to $4.1 million a year ago. “Delays in customer orders combined with reduced customer demand stemming from the global downturn and tight credit markets continued to weigh on the broadcast equipment industry, including Miranda,” said Strath Goodship, Miranda (TSX: MT) president and CEO. “Despite weaker end market demand, our business fundamentals remain strong and we remain a dominant player in our industry. Furthermore the integration of Nvision is proceeding well and the broader solutions now being offered have allowed us to win a number of combined deals. We also continue to believe broadcast spending will eventually improve. Therefore, we continue to make sound investments in our future, streamlining costs to mitigate the impact of lower sales volumes, while strengthening our product line through strategic investments in R&D.” Investment in research and development was $5.8 million for the year, up from $4.5 million a year ago. R&D represented 19 percent of sales compared to 13 percent a year ago. Regionally, revenues were up 3 percent in Canada and down 21 percent in the United States. Both comprised 51 percent of sales, with the rest going to “other countries.” Gross margin was 61 percent up sales, up two percentage points from a year ago. As of June 30, Miranda had nearly $72.5 million in cash and equivalents compared to $46.4 million a year ago, and $157,000 in long-term debt compared to $21.6 million last year. Shares of the company were trading around $4.60 in mid-afternoon. -- Deborah D. McAdams More TVB coverage of Miranda’s results: May 6, 2009: “Miranda Technologies reported lower earnings on higher revenues today for its first quarter compared to last year. The company posted sales of $33.2 million Canadian, up 30 percent from C$25.5 million last year, with net income at C$1.1 million, down 69 percent from last year’s C$3.5 million. Miranda’s (TSX: MT) $40 million U.S. acquisition of NVision closed in December. Miranda Sales Rise, Profit Drops” February 20, 2009: “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 Posts Record Profit”
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