Miranda Technologies Inc. has reported results for the second quarter ended June 30, 2008

July 30, 2008

Source: Miranda

Second Quarter Financial Highlights: Q2 2008/2007

- Sales increase of 23% to $34.2 million, compared to $27.8 million in 2007
- On a constant currency basis, sales increased by 29%
- Net income of $4.1 million, up 105% from $2.0 million in Q2 2007
- Fully diluted EPS of 16 cents, up from 8 cents
- EBITDA(1) increase to $7.0 million, from $4.0 million

Strath Goodship, Miranda's President and Chief Executive Officer, said, "Our strong results reflect our continued success at capturing market share by offering products that allow broadcasters to competitively transition to high definition and multiply their channel offerings. The company has enjoyed a significant improvement in sales and profitability since the second half of 2007 and the results this quarter were no different. Sales remained solid across all geographic areas, with international markets performing particularly well."

Year-over-year operating highlights: Q2 2008 versus Q2 2007

Revenue

Sales for the second quarter of 2008 were $34.2 million, increasing 23% over the same period last year. On a constant currency basis sales were up 29%.

Sales were higher in all geographic areas, with Canada, United States and Other Countries, growing 10%, 16% and 34% respectively over the previous year. The Company continues to extend its global presence, with Other Countries generating 45% of total quarterly sales, compared to 41% in 2007.

Growth continued to be fuelled by 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 59% for the quarter, up from 56% last year. The increase is due to the impact of new products and operating efficiencies. In comparison, the 2007 margin was negatively impacted by a rapid decline of the US dollar.

Operating Expenses

Selling, General & Administrative expenses (SG&A) were $9.5 million for the second quarter, compared to $8.5 million in 2007. The increase over last year is mainly due to higher selling and marketing costs, reflecting stronger sales this quarter, and incremental IT costs associated with the implementation of an Enterprise Resource Planning (ERP) system.

Research and Development (R&D) investments totalled $4.5 million for the quarter, increasing 8% over last year. R&D as a percentage of sales was 13%, compared to 15% in 2007. This level of investment is within the planned range established by management and will continue to allow the Company to pursue its aggressive development plans and improve the speed of new product introductions.

Net Income and EBITDA

Net income for the second quarter was $4.1 million and fully diluted earnings per share (EPS) were 16 cents. This compares favourably to the $2.0 million and 8 cents seen in the prior year.

EBITDA was $7.0 million this quarter, up from $4.0 million in 2007. The EBITDA margin (EBITDA as a percentage of sales) stood at 21% for the quarter, versus 14% last year.
Liquidity and Capital Resources

At the end of the second quarter, cash, cash equivalents and temporary investments were $77.8 million. This is up from the $75.7 million seen at the end of the first quarter 2008. During the quarter, $1.8 million was used to repurchase company shares. All of the Company's liquid investments 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 Highlights

During the quarter, the Company further extended its reach, opening an office in Dubai.

In May 2008, Miranda announced a normal course issuer bid, which entitles the Company to purchase up to 2.0 million, or approximately 8% of its issued and outstanding common shares. At June 30, 2008 210,800 shares had been purchased at an average price of $8.44. "We continue to believe our shares trade in a price range that does not adequately reflect their underlying value," commented Strath Goodship.

"Our decision to institute a share buyback program reflects our confidence in the Company's potential and on-going ability to generate cash. With growing revenues and earnings, and a strong balance sheet, we also remain well positioned to carry out our organic growth and acquisition strategies."

Outlook

"To date, we have seen strong demand for our products and current business metrics indicate this trend will continue," said Strath Goodship. "The new products launched at the National Broadcasters Association (NAB) conference earlier this year, along with those coming during the rest of 2008, strengthen our offerings and provide a foundation for further growth. As we look forward, we remain focused on delivering value for our clients, and in turn, our shareholders."

Submit a Company

Submit News

Submit a Job

Submit an Event