MONTREAL, March 27 /CNW Telbec/ - Miranda Technologies Inc (TSX: MT) announced today that the Company expects its revenue and earnings results will fall short of analysts' consensus estimates for the first quarter ending March 31, 2007. Based on management's review of preliminary unaudited results to date, the Company's first quarter revenue is anticipated to be between $20 M to $22 M compared to a consensus estimate of $26.5 M, and is expected to result in an impact on the quarter's earnings. In 2006, the Company had posted revenue of $24.1 M for the first quarter.
Strath Goodship, Miranda's Chief Executive Officer stated:
"We are disappointed with our anticipated first quarter results. We believe there are two reasons for the shortfall in 2007 first quarter revenue compared to the same period last year. First the introduction of our new multi-viewer, the Kaleido-X, has negatively affected sales of the incumbent product and second, some markets outside of the U.S. have been softer than last year, in particular Western Europe, limiting our revenue growth in these areas.
We continue to be pleased with the market acceptance of the new Kaleido-X multi-viewer that we started shipping at the end of last year. It is a robust platform with a number of unique features and ample scope for development, so we are confident in the product's success. However, it has adversely impacted sales of the Kaleido K2 multi-viewer more than anticipated in certain markets, such as Japan. Due to the more complex nature of the Kaleido-X, it has also taken longer to ramp up manufacturing of the new product than expected.
Management's efforts are directed at growing the Company's business. We expect that new product introductions and the continued ramp up of the Kaleido-X to have full impact in the second half of the year. We are allocating resources to speed up introduction of new products and features, some of which will be presented at the National Association of Broadcasters exhibition in April."
Miranda expects to announce its full 2007 first quarter results on May 2nd 2007.
Forward-Looking Statement
This press release contains forward-looking statements reflecting Miranda's objectives, estimates and expectations. Such statements may be marked by the use of verbs such as 'believe', 'expect' 'anticipate', 'estimate' and 'looking ahead', as well as the use of the conditional and future tenses. By their very nature, such statements involve risks and uncertainty. Consequently, actual results could differ materially from the Company's expectations. Our Annual Information Form under "Risk Factors" -available on SEDAR at the address www.sedar.com- describes the risks that could cause significant spreads between current results and Miranda forecasts (see more specifically "Penetration of Markets and Continued Growth", "Sales of Large Orders", "Unpredictable Quarterly Revenues and Operating Results", "Long Sales and Implementations Cycles for our Products", "International Operation", "Global Economic Uncertainties" and "Business Cycle"). The forward-looking statements contained in this press release represent our current expectations and, accordingly, are subject to change. However, we disclaim any intention and assume no obligation for updating or revising any forward-looking statements, whether as a result of new information, events or otherwise, unless required by applicable securities legislation.
About Miranda
Miranda Technologies Inc. (TSX: MT) develops, manufactures and markets high-performance material and software for the television broadcast industry. Its products are purchased by content creators, broadcasters, specialty channels and television service providers to enable and enhance the transition to a complex, multi-channel digital and HDTV broadcast environment. This equipment allows clients to generate additional revenue while reducing costs through the more efficient distribution and more effective management of content, as well as by automation of previously manual processes. The Corporation has approximately 400 employees at its Head Office in Montreal, and in its offices in Wallingford (United Kingdom), Springfield (United States), Paris (France), Tokyo (Japan), Beijing (China) and Hong Kong. Miranda became a public company in December of 2005 and is listed on the Toronto Stock Exchange. For more information, please consult www.miranda.com.