Posts Tagged ‘iTX’

Miranda Reports Record Q4 and Full Year 2010 Results, Forecasts Continued Growth

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 24 2011

Miranda Technologies said today it achieved record revenue for the fourth quarter and full year 2010, driven by a strong international sales performance, and helped by the contribution from recently acquired automated playout provider OmniBus Systems.

Revenue for the fourth quarter was a record C$44.9, up 26% versus the same period a year ago, and up 19% versus the previous quarter. OmniBus, which was acquired in September of 2010, contributed C$6m during the quarter.   Excluding OmniBus, Q4 revenue grew 9% versus the same period a year ago.

Q4 net income was C$3.8m, up 82% from Q4 2009 but down 42% from the previous quarter when the company was helped by a C$1.3m reduction in income taxes as well as a one-time tax credit of C$2.4m.  OmniBus recorded a net loss of $0.2m during the quarter. Excluding OmniBus, Q4 net income was up 92%.

Gross margins for the quarter were 60%, up seven percentage points versus the same quarter a year ago, and exceeding the high-end of the guidance the company issue during a recent investor presentation. The company attributed its strong margin performance to improved pricing, product and customer mix, including the sale of higher margin solutions associated with OmniBus, along with operational efficiencies.  Miranda says it expects gross margins to continue to be at the high-end of its targeted range of 55% – 59%.

EBITDA was C$8.1m for the quarter, up 57% over Q4 2009. EBITDA as a percentage of sales was 18%, up three percent versus the same period a year ago.

Q4 Revenues increased in all geographies versus the previous year, with Canada, the United States and Other Countries, growing 596%, 24% and 14%, respectively. Canada, the United States and Other Countries generated 7%, 38% and 55% of quarterly sales respectively.

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For the full year 2010, the company posted net income of C$12.2m (up 122% versus FY 2009), on record revenue of C$143.7m (up 9% versus FY 2009), with OmniBus contributing C$7.9m since it was acquired.

Excluding OmniBus, 2010 was C$135.7m, up 3% over 2009, while net income was up 122%.

On a geographic basis, full year 2010 sales from the international region increased 15% over 2009 to C$78.3m, while sales to the United States were down 3%, coming in at C$55.5m.

On the company’s conference call with equity analysts, Miranda president and CEO Strath Goodship said that the broadcast market improved during 2010 and that the company was able to capitalize on this.  He said that US broadcast market is experiencing steady recovery and that Q4 2010 was “reasonably good” in the US, but not back to 2008 levels.  However, he said that emerging markets had returned to 2008 levels, and that he expects 2011 to be a “pretty good” year.

Goodship mentioned several key product areas as revenue drivers, including the launch of the Nvision hybrid router, which has said was a big success in the market.  He also reported that infrastructure sales continued to be strong as customers worldwide continue to upgrade to HDTV operations.

Not surprisingly, Goodship spent time during the call discussing the acquisition of OmniBus, stating that the purchase of the automated playout provider was one of the company’s “most pivotal moves to date” and that it has increased Miranda’s addressable market by 40%.  Goodship says that the OmniBus integration program is progressing rapidly.  Subsequently company CFO Mario Settino said that the company has not yet fully realized the synergies of the mergers but that plans are in place to do this later in the year.

When asked by an analyst about growth at OmniBus, Goodship said that while the unit’s overall revenue growth was relatively flat, the iTX product line had experienced “dramatic growth.” 

Commenting on the potential for continued revenue growth at Miranda, Goodship said that the company believes it can continue to grow faster than the market.

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You can read the full Miranda Q4 and FY 2010 press release here.

Information on Miranda’s previous quarter performance is here.

A recent press release about Miranda’s progress with the OmniBus integration is here.

Miranda buys OmniBus story is here.

Miranda’s Most Recent Investor Presentation is here.

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