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Miranda Falls on Foreign Exchange Rates

MONTREAL, QUEBEC: First-quarter revenues at Miranda Technologies dipped on the negative impact of foreign exchange rates. Revenues totaled $29 million versus $33.2 million last year. Excluding the impact of exchange rates, Miranda said sales would have been up 1 percent. Net loss was $1.7 million or 7 cents a share versus net income of $1.1 million or 5 cents a share in 1Q09. (All figures in Canadian currency.)

Earnings before interest, depreciation and amortization were $700,000 versus $3.8 million, affected by an exchange loss of $1.9 million. Cash and equivalents totaled $52.4 million at quarter end, up from $49.2 million at the end 2009.

International sales grew 26 percent over Q1 2009. Sales in Canada “picked up significantly over levels seen in recent quarters, coming in 116 percent higher than last year,” Miranda’s earnings release said. U.S. sales declined 50 percent. Canada, the United States and other countries generated 10, 32 and 58 percent of sales respectively.

“Removing unfavorable movements in foreign exchange, sales volume was as we expected,” said Strath Goodship, president and CEO of Miranda. “International sales are becoming increasingly robust and we saw a sharp improvement in sales in Canada this quarter. As well, the gross margin came in at the highest level seen in recent quarters, driven by favorable product and customer mix. As the year progresses, we expect to see improvements in demand.”

Miranda cut a deal with Sensio in April to develop 3D play-out products for broadcasting, including the Densite 3DX-3901 Stereoscopic 3D video processor. It’s loudness-control technology won accolades at the 2010 NAB Show.

Goodship said the broadcast markets seem to have stabilized, however the timing and strength of a rebound remains uncertain,” he said. “Sales momentum in international markets continues to build and we are seeing signs of a broad based recovery. Sales activity in North American markets, particularly the USA, remains constrained, although we are hopeful the heightened product interest seen at NAB will translate into stronger revenues in these markets going forward. The new products introduced at NAB, along with a number of sporting and political events in 2010 should help drive revenues and position us for growth.”