May 5, 2010 / 10:25 AM / in 8 years

REFILE-UPDATE 3-Miranda Tech posts surprise Q1 loss

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* Q1 loss C$0.07/shr vs est EPS C$0.07

* Q1 rev C$29.0 mln vs est C$32.6 mln

* Says uncertain about the timing of recovery

* Sees 3D, major events driving demand

* Shares down as much as 8 percent (Recasts, adds details, analysts comments, share movement)

By Aftab Ahmed

BANGALORE, May 5 (Reuters) - Broadcast equipment maker Miranda Technologies Inc’s MT.TO surprise loss on the back of foreign exchange losses and its uncertainty about a recovery in demand sent its shares down as much as 8 percent.

The Canadian company said sales remained constrained in North America, particularly in the United States, which contributes about 57 percent of total revenue.

“We continue to believe that broadcast markets have stabilized. However, the timing and strength of a rebound remains uncertain,” Chief Executive Strath Goodship said in a statement.

Analysts also echoed the company, saying that while the decline in the U.S. markets had stemmed, the timing of a recovery could not be predicted.

“We think U.S. market is weak but is not getting worse at this point,” Genuity Capital Markets analyst Deepak Chopra said, while questioning the pace of the recovery in U.S market.

Shares of the Montreal-based company were trading down 5 percent at C$4.69 in late morning on the Toronto Stock Exchange.

Miranda posted a first-quarter loss of C$1.7 million, or 7 Canadian cents a share, on the back of a C$1.9 million foreign exchange loss. It had earned C$1.1 million, or 5 Canadian cents a share, a year ago.


However, major sporting and political events in 2010, like the soccer World Cup and the U.K general elections, are expected to act as a catalyst for demand for in the rest of the year.

Dundee securities Corp analyst Puneet Malhotra expects U.S. market to bounce back in the later half of 2010, which could trigger growth for the company.

The company also said it expects the boom in 3D to boost its bottom line soon, but analysts rule out any benefits in the short term. “3D is becoming more popular from the broadcasters perspective, but I think its still going to be a niche market. I am not expecting too much in 2010,” Malhotra said.

Reporting by Aftab Ahmed in Bangalore; Editing by Ratul Ray Chaudhuri and Prem Udayabhanu

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