February 29, 2012 / 5:08 PM / in 6 years

Miranda Tech profit misses Wall Street as costs rise

(Reuters) - Miranda Technologies Inc MT.TO reported quarterly results below analysts’ estimates as costs soared, sending the Canadian broadcast infrastructure provider’s shares down as much as 11 percent.

Fourth-quarter profit was 16 Canadian cents per share, while analysts on average had expected 31 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 12 percent to C$50.1 million ($50.9 million), below the C$51.9 million analysts were expecting.

The profit was mainly hurt by an increase in net finance expenses -- up nearly three-fold -- as currency fluctuations and a rise in share-based compensation offset the jump in revenue.

The company recorded a loss of C$2.2 million, or 10 Canadian cents per share, in foreign exchange and C$1.5 million in compensation.

On a conference call, Miranda said it expects industry growth to slow to single digits in 2013, after a potentially strong 2012, which will be helped by the U.S. presidential election and the London Olympics.

However, Canaccord Genuity analyst Robert Young said the company is well positioned to grow faster than the market when it slows down next year.

Shares of Miranda, whose rivals include Harris Corp HRS.N and Belgium’s EVS Broadcast Equipment SA EVSB.BR, were down 9 percent at C$10.06 in late-morning trade on the Toronto Stock Exchange. They touched a one-month low of C$9.80 earlier in the day.

($1 = 0.9850 Canadian dollars)

Reporting by Abhiram Nandakumar in Bangalore; Editing by Sreejiraj Eluvangal, Maju Samuel

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