Miranda Technologies reported that its revenue for the fourth quarter of 2011 was C$50.1m, an increase of 12% versus the same period last year, and up 3% versus the previous quarter. The company said that one customer accounted for at least 10% of revenue in the quarter.
Net profit for the quarter was C$3.5m (16 cents per share), down from C$3.8m last year, and down 73% versus the previous quarter. The company said that its profit in the quarter was negatively impacted by a C$2.2m foreign exchange loss and a C$1.5m increase in share-based compensation.
The results were below the expectations of equity analysts who on average were looking for revenue of C$51.9m with a net profit of 31 cents per share.
Revenue for the full year 2011 was C$181.9m, an increase of 27% versus 2010. FY 2011 revenue includes a full year of contribution from OmniBus, which was acquired in September of 2010 and contributed C$6m to 2010 revenue. Full year numbers for OmniBus were not disclosed so it’s not possible to determine how much of the company’s year-over-year growth was as a result of the OmniBus acquisition.
The company said its Q4 2011 results were driven by stronger sales in both the USA and United Kingdom, which increased 28% and 45% respectively, but cautioned that many of the sales recorded in the UK end up in other parts of Europe or the Middle East, because it is a distribution point for the company. Sales in Canada and Other Countries were down 3% and 5% respectively.
EBITDA was C$8.7m for the quarter, up 10% versus Q4 2010. EBITDA as a percentage of sales was 17%, down from 18% last year, and down from 32% last quarter. The company’s annualized EBITDA target range is 20% to 25%.
Gross margins for the quarter were 61%, at the high end of the company’s target range of 57% – 61%. The company said is gross margins in the quarter were positively impacted by operational efficiencies, along with pricing, product and customer mix.
SG&A in the quarter was C$15.7m, or 31% of revenue, versus C$15.2m last year (34% of revenue) and C$15.3m last quarter. The increase was largely due to higher provisions for incentive plans.
R&D expenses before tax credits were C$6.2m or 12% of sales, compared to C$6.8m or 15% of sales in 2010. The decrease over 2010 is mainly due to a government grant received on qualifying R&D expenses for the development of technologies.
Full Year 2011 Results:
For the full year 2011, the company posted net profit of C$22.6m (up 100% versus 2010) on record revenue of 181.9m (up 27% versus 2010).
Full year EBITDA was up 65% versus 2010 to $C37.3m, or 21% of revenue, in line with the company’s 20% to 25% target range.
Full Year Gross Margins were 61% up from 60% in 2010, at the high end of the company’s targeted range.
“We had another strong quarter, capping off a very successful year,” commented Strath Goodship, Miranda’s President and Chief Executive Officer. “Revenues and profitability were at record levels for 2011, reflecting our success at offering innovative solutions that deliver real value to broadcasters and television service providers. The growth strategies we have undertaken in recent years delivered the strong operational and financial performance we have seen over the last eight quarters. We plan to build on this positive momentum and deliver sustained long-term shareholder and customer value.”
Press Release: Miranda Reports 2011 Fourth Quarter and Year-End Results
Miranda Q4 2011 Management’s Discussion and Analysis (MD&A) Filing with Canadian Securities Regulators
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