November 4, 2011 / 10:49 AM / 7 years ago

UPDATE 3-Miranda Tech sees pent-up demand for broadcast gear

* Q3 rev up 29 pct at C$48.8 mln (Adds comments from CEO, share movement)

By Abhiram Nandakumar

Nov 4 (Reuters) - Miranda Technologies’ third-quarter earnings handily beat market estimates on a slew of contract wins, and the broadcast infrastructure provider said it was bracing to meet pent-up demand across its markets next year.

Shares of the Montreal-based company rose about 24 percent to C$8.50, their highest since late 2008, on Friday morning on the Toronto Stock Exchange.

Miranda, which provides the broadcast industry with playout and monitoring systems, is banking on the U.S. presidential elections and the London Olympics to boost its revenue and profit growth in 2012, but is also set to cash in on an industry upgrade cycle.

Miranda’s Chief Executive Strath Goodship is confident that the company is fairly insulated from a downturn in the economy.

“If the economy takes a downturn, the Olympics will still carry on, there will still be advertising and there will possibly be more people staying at home and watching T.V. That’s a good thing,” he told Reuters by phone.

“There are some developed economies like the U.S. where since the end of 2008, or early 2009, they (broadcasters) have really not returned spending (on infrastructure) to traditional levels,” said Goodship, who added that broadcasters usually upgrade their equipment every four years.

Miranda raised its outlook for full-year gross margin to about 57-61 percent, up from the 55-59 percent it had forecast earlier, and kept its EBITDA outlook at about 20-25 percent of total sales. Gross margin was 59 percent and EBITDA 16 percent of total sales in 2010.


Net income doubled to C$13.2 million ($13 million), or 60 Canadian cents per share, from C$6 million, or 27 Canadian cents per share, a year ago.

Adjusted earnings per share was 47 Canadian cents per share, excluding a one-time C$3 million adjustment from income taxes.

Revenue rose 29 percent to C$48.8 million, driven by a slew of contracts with major TV networks, including NBC Universal and ITV.

Analysts on average had expected the company to earn 22 Canadian cents per share on revenue of C46.2 million, according to Thomson Reuters I/B/E/S. ($1 = 1.013 Canadian Dollars) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Viraj Nair, Saumyadeb Chakrabarty)

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