GoldHaven Resources Corp. press release
Miranda reports second-quarter results
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MONTREAL, July 31 /CNW Telbec/ - Miranda Technologies Inc. (TSX: MT), a global developer, manufacturer and marketer of high-performance hardware and software for the television broadcast industry, today reported results for the second quarter of its 2007 fiscal year, ended June 30.
In the second quarter of 2007, sales were $27.8 million, compared to $28.3 million in the corresponding period in 2006 and an increase of 32% over the first quarter of 2007. It should be noted that, in the second quarter of 2006, $2 million in sales resulting from the reversal of deferred revenue were recognized. Excluding this reversal, second-quarter sales were 6% higher than in the same period in 2006.
Sales in the United States were stable compared to last year's second quarter. However, excluding the reversal of deferred revenue recorded in the second quarter of 2006, sales increased by 17% for the quarter. Strath Goodship, President and CEO of Miranda noted: "During the second quarter, Miranda sales benefited from an increased activity level for high definition build-outs in the Americas." Internationally, sales were comparable with the previous year.
"In Asia", added Mr. Goodship, "after a slow first quarter, sales picked up in the second quarter, increasing by 20% over the same period in 2006. This is the result of an increase in opportunities, aggressive discounting in certain markets and the restructuring of our Asian sales organization over the past year."
The new Kaleido-X multi-image processor, is being delivered according to plan and is allowing Miranda to win key accounts. Further development on the Kaleido-X is on track and will continue during the rest of 2007 to integrate all the key functionalities of the incumbent product (Kaleido-K2) into the new platform.
R&D investments for the quarter grew by 4% compared to the same period in 2006. This intended increase allowed Miranda to pursue its development plans and improve the speed of new product introductions.
The gross margin as a percentage of sales decreased by 5% compared to the same period in 2006. The decrease in the margin is mainly attributable to product and customer mix and to the strength of the Canadian dollar versus the other currencies in which Miranda concludes sales. Management estimates that the rapid and substantial decline of the US dollar and its impact on component costs accounts for a drop of approximately two percentage points in the gross margin for the period.
EBITDA was $4.0 million, compared to $6.3 million in 2006. Net income for the period was $2.0 million compared to $4.2 million in the same period last year, translating into a fully diluted EPS of $0.08 compared to $0.17.
"We have made progress in the second quarter by accelerating the introduction of new products, by focusing on specific markets and by emphasizing customer support. The products we announced in April, such as the Kaleido-X, the Imagestore 750, the XVP-1801 and the Jazz-800 continue to receive positive reactions from customers. We are very pleased with the level of orders received particularly for new products and we believe that it will have an impact on our 2007 performance as we deliver them in the second half of the year," concluded Mr. Goodship.
Forward-looking statements
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', 'anticipate', 'estimate', 'looking ahead' and 'expect', as well as the use of the conditional or future tense. By their very nature, such statements involve risks and uncertainties. Consequently, results could differ materially from the Company's expectations. Risks that could cause results to differ materially from Miranda's expectations are discussed under the heading Risk Factors in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release represent Miranda's current expectations and, accordingly, are subject to change. However, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statement, whether as a result of new information or events or otherwise, unless required to do so by the applicable securities legislation.
Conference call
Miranda Technologies Inc. will hold a conference call with financial analysts to present its second-quarter 2007 results on August 1st at 10:00 AM (Eastern Time). Those interested should call 514-807-8791 (Montreal or overseas) or 800-732-0232 (elsewhere in North America).
The call can also be accessed via a direct broadcast site at the following addresses: www.miranda.com, www.newswire.ca and www.q1234.com. The webcast of the conference call will be available for a period of 90 days.
Those unable to participate can hear a recording of the call by dialling 1-877-289-8525 and entering the code 21239183(number sign) on the telephone keypad. This recording will be accessible from 12:00 PM on Wednesday, August 1, 2007 to 11:59 PM on Wednesday, August 8, 2007.
About Miranda
Miranda Technologies Inc. (TSX: MT) develops, manufactures and markets high-performance hardware and software for the television broadcast industry. Its solutions 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 customers to generate additional revenue while reducing costs through more efficient distribution and management of content as well as the automation of previously manual processes. Miranda employs over 400 people at its Montreal headquarters and in its facilities located in Wallingford (UK), Springfield (New Jersey, USA), Paris (France), Tokyo (Japan), Beijing (China) and Hong Kong. Miranda became a public company in December 2005 and is listed on the Toronto Stock Exchange. For more information, please visit www.miranda.com.
The selected consolidated financial information set out below for the second quarter of the fiscal year ending December 31, 2007 is unaudited, presented in Canadian dollars and prepared in accordance with Canadian generally accepted accounting principles. The following information should be read in conjunction with the Company's interim unaudited consolidated financial statements and notes thereto, which have been filed on SEDAR.
CONSOLIDATED BALANCE SHEETS (In thousands of Canadian dollars) June 30, 2007 and December 31, 2006
June 30, December 31, 2007 2006 (Unaudited) (Audited) Assets
Current assets: Cash and cash equivalents $ 62,184 $ 40,378 Temporary investments - 22,179 Accounts receivable 19,844 17,710 Inventories 16,396 15,292 Income taxes receivable 4,518 5,279 Prepaid expenses 762 886 Future income taxes 663 625 104,367 102,349
Capital assets 13,839 13,498 Intangible assets 7,043 7,937 Goodwill 3,933 3,933
$ 129,182 $ 127,717
Liabilities and Shareholders' Equity
Current liabilities: Accounts payable and accrued charges $ 12,142 $ 14,649 Deferred revenue 399 298 Income taxes payable 969 1,015 13,510 15,962
Deferred revenue 1,494 1,040 Future income taxes 2,238 2,313
Shareholders' equity: Share capital (note 3) 111,846 111,784 Contributed surplus (note 3) 1,761 1,216 Deficit (1,655) (4,598) Accumulated other comprehensive income (notes 2 and 4) (12) - 111,940 108,402
Contingencies (note 5)
$ 129,182 $ 127,717
See accompanying notes to unaudited consolidated financial statements.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three-month and six-month periods ended June 30, 2007 and 2006 (In thousands of Canadian dollars, except per share amounts)
Three-month periods ended Six-month periods ended June 30, June 30, 2007 2006 2007 2006
Sales $ 27,807 $ 28,332 $ 48,836 $ 52,433
Cost of sales 12,329 10,986 20,979 20,727 15,478 17,346 27,857 31,706
Operating expenses: Selling, general and administrative 8,508 8,670 16,413 15,456 Research and development 4,179 4,037 8,345 7,603 Research and development tax credits (995) (850) (1,994) (1,400) Interest (561) (420) (1,290) (865) Foreign exchange (gain) loss 28 (538) (72) (960) Stock-based compensation 293 147 545 232 Amortization of intangible assets 447 466 894 925
Income before income taxes 3,579 5,834 5,016 10,715
Income taxes: Current 1,665 813 2,249 1,480 Future (94) 871 (129) 1,687 1,571 1,684 2,120 3,167
Net income $ 2,008 $ 4,150 $ 2,896 $ 7,548
Net earnings per share (note 3 (c)): Basic $ 0.08 $ 0.17 $ 0.12 $ 0.31 Diluted 0.08 0.17 0.12 0.30
Basic weighted average number of common shares outstanding 24,741,490 24,246,168 24,733,776 24,099,825 Diluted weighted average number of common shares outstanding 25,086,116 25,014,056 25,105,267 24,990,082
See accompanying notes to unaudited consolidated financial statements.
CONSOLIDATED STATEMENTS OF DEFICIT (Unaudited)
Three-month and six-month periods ended June 30, 2007 and 2006 (In thousands of Canadian dollars)
Three-month periods ended Six-month periods ended June 30, June 30, 2007 2006 2007 2006
Deficit, beginning of period $ (3,663) $ (20,178) $ (4,598) $ (23,576)
Adjustment due to the new accounting policies adopted regarding financial instruments (net of income taxes of $22) (note 2) - - 47 - Adjusted balance (3,663) (20,178) (4,551) (23,576)
Net income 2,008 4,150 2,896 7,548
Deficit, end of period $ (1,655) $ (16,028) $ (1,655) $ (16,028)
Consolidated Statements of Comprehensive Income (Unaudited)
Three-month and six-month periods ended June 30, 2007 and 2006 (In thousands of Canadian dollars)
Three-month periods ended Six-month periods ended June 30, June 30, 2007 2006 2007 2006
Net income $ 2,008 $ 4,150 $ 2,896 $ 7,548
Other compre- hensive income: Change in fair value of available-for- sale finance assets 4 - (5) -
Comprehensive income $ 2,012 $ 4,150 $ 2,891 $ 7,548
See accompanying notes to unaudited consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three-month and six-month periods ended June 30, 2007 and 2006 (In thousands of Canadian dollars)
Three-month periods ended Six-month periods ended June 30, June 30, 2007 2006 2007 2006
Cash flows from operating activities: Net income $ 2,008 $ 4,150 $ 2,896 $ 7,548 Adjustments for: Depreciation of capital assets 533 447 1,038 848 Amortization of intangible assets 447 466 894 925 Stock-based compensation 293 147 545 232 Gain on disposal of an investment - - - (100) Future income taxes (94) 871 (129) 1,687 Effect of exchange rates on cash and cash equivalents 620 (87) 712 89 3,807 5,994 5,956 11,229
Net change in operating working capital items (1,948) (2,226) (4,283) (3,008) 1,859 3,768 1,673 8,221
Cash flows from financing activities: Repayment of long-term debt - (1,793) - (1,793) Reimbursement of loan granted to management - 2,366 - 2,366 Issuance of common shares 5 1,238 62 1,238 5 1,811 62 1,811
Cash flows from investing activities: Additions to capital assets (554) (632) (1,379) (1,386) Proceeds from sale of investment - - - 100 Proceeds from sales of temporary investments - - 22,179 - Business acquisition (note 2) - (11,641) - (11,641) (554) (12,273) 20,800 (12,927)
Effect of exchange rates on cash and cash equivalents (620) 87 (712) (89) Effect of comprehensive income on cash and cash equivalents 6 - (17) - Net increase (decrease) in cash and cash equivalents 696 (6,607) 21,806 (2,984)
Cash and cash equivalents, beginning of period 61,488 62,287 40,378 58,664 Cash and cash equivalents, end of period $ 62,184 $ 55,680 $ 62,184 $ 55,680
Cash and cash equivalents are comprised of: Cash $ 8,254 $ 12,198 $ 8,254 $ 12,198 Cash equivalents 53,930 43,482 53,930 43,482
$ 62,184 $ 55,680 $ 62,184 $ 55,680
See accompanying notes to unaudited consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Three-month and six-month periods ended June 30, 2007 and 2006 (In thousands of Canadian dollars, except per share amounts)
Miranda Technologies Inc. (the "Company") was amalgamated under Part 1A of the Companies Act (Quebec). The Company develops, manufactures and markets high performance solutions for the television broadcast industry.
1. Basis of presentation:
The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with Canadian generally accepted accounting principles on a basis consistent with those followed in the most recent audited annual consolidated financial statements, except for recognition and measurement of financial instruments presented per Section 3855 of CICA Handbook, Financial Instruments - Recognition and Measurement, which required prospective applications. These unaudited interim consolidated financial statements do not include all information and note disclosures required by Canadian generally accepted accounting principles for annual financial statements, and, therefore, should be read in conjunction with the December 31, 2006 audited consolidated financial statements and the notes thereto. Our sales are subject to seasonal fluctuation. Normally, the first quarter of each year is the weakest and sales activity is more evenly spread over the remaining quarters.
2. Changes in accounting policies:
Effective at the beginning of its 2007 fiscal year, the Company has adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530, Comprehensive Income, CICA Handbook Section 3251, Equity, CICA Handbook Section 3855, Financial Instruments -Recognition and Measurement, CICA Handbook Section 3861, Financial Instruments - Disclosure and Presentation, and CICA Handbook Section 3865, Hedges. These new Handbook Sections, which apply to fiscal years beginning on or after October 1, 2006, provide comprehensive requirements for the recognition and measurement of financial instruments, as well as standards on when and how hedge accounting may be applied. Handbook Section 1530 also establishes standards for reporting and displaying comprehensive income. Comprehensive income is defined as the change in equity from transactions and other events from non-owner sources. Other comprehensive income refers to items recognized in comprehensive income but that are excluded from net income calculated in accordance with generally accepted accounting principles. Under these new standards, all financial instruments are classified into one of the following five categories: held for trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets or other financial liabilities. All financial instruments, including derivatives, are included on the consolidated balance sheet and are measured either at fair market value with the exception of loans and receivables, investments held-to-maturity and other financial liabilities, which will be measured at amortized cost. Subsequent measurement and recognition of changes in fair value of financial instruments depend on their initial classification. Held-for-trading financial investments are measured at fair value and all gains and losses are included in net income in the period in which they arise. Available-for-sale financial instruments are measured at fair value with revaluation gains and losses included in other comprehensive income until the asset is removed from the balance sheet. The standards require derivative instruments to be recorded as either assets or liabilities measured at their fair value unless exempted from derivative treatment as a normal purchase and sale. Certain derivatives embedded in other contracts must also be measured at fair value. All changes in the fair value of derivatives are recognized in earnings unless specific hedge criteria are met, which requires the Company to formally document, designate and assess the effectiveness of transactions that receive hedge accounting. Derivatives that qualify as hedging instruments must be designated as either a "cash flow hedge," when the hedged item is a future cash flow, or a "fair value hedge," when the hedged item is a recognized asset or liability. The unrealized gains and losses related to a cash flow hedge are included in other comprehensive income. For a fair value hedge, both the derivative and the hedged item are recorded at fair value in the consolidated balance sheet and the unrealized gains and losses from both items are included in earnings. Any derivative instrument that does not qualify for hedge accounting is marked-to-market at each reporting date and the gains or losses are included in earnings. These new standards have to be applied without restatement of prior period amounts. Upon initial application, all adjustments to the carrying amount of financial assets and liabilities shall be recognized as an adjustment to the opening balance of deficit or accumulated other comprehensive income, depending on the classification of existing assets or liabilities. As at January 1, 2007, the Company has recorded a $47 (net of income taxes of $22) reduction to the opening balance of deficit with respect to the financial assets and liabilities and embedded derivatives and a $7 (net of income taxes of $3) reduction to the opening balance of accumulated other comprehensive income with respect to the available-for-sale financial assets. As at December 31, 2006 and June 30, 2007, all outstanding forward foreign exchange contracts were reported on a mark-to-market basis and the gains or losses were included in earnings, because the Company elected not to follow hedge accounting for these derivatives. The adoption of these standards did not have a significant impact on the consolidated statement of income.
3. Share capital:
(a) Issued and paid share capital:
June 30, December 31, 2007 2006 24,742,914 common shares (24,706,813 at December 31, 2006) $ 111,846 $ 111,784
(b) Stock option plan:
The Company established a stock option plan to attract, retain and provide an incentive to the employees, directors, officers and consultants, by providing these persons with the opportunity, through stock options, to acquire an ownership interest in the Company. The current stock option plan was adopted in June 2003 to replace prior plans and has been amended and restated in November 2005 to conform to applicable securities rules and practices for public companies. The stock option plan is administered by the Board of Directors. The Board of Directors may determine, in accordance with the terms of the stock option plan, the terms relating to each option, including the number of shares subject to each option, exercise price and expiration date of each option and the extent to which each option is exercisable during the term of the option. The term of an option granted after November 2005 cannot exceed 5 years (10 years under the previous plan) and will usually be vested over three years. All of the options granted pursuant to the stock option plan before the November 2005 amendment have vested upon closing of the initial public offering of the Company. A total of 2,395,185 common shares are reserved for issuance upon exercise of options issued under the stock option plan. As a result, less than 10% of the outstanding capital is reserved for issuance upon exercise of all options or issuable under the stock option plan. After taking into account issued and cancelled options, 482 991 common shares are available for issuance under this stock option plan.
The following table summarizes information on stock options outstanding at June 30, 2007:
Weighted average Number exercise of options price
Balance, beginning of period 931,236 $ 8.83 Granted 226,000 13.13
Exercised (36,101) 1.71
Balance, end of period 1,121,135 $ 9.93
The outstanding options at June 30, 2007 are presented in the table below:
Number of Number of Residual outstanding vested life Exercise price options options (years)
$ 1.71 205,385 205,385 6.1 $ 3.96 115,000 115,000 7.8 $ 3.96 175,000 175,000 8.0 $16.46 324,000 107,976 3.7 $17.08 50,000 16,665 3.7 $18.82 20,000 6,667 3.9 $17.24 5,750 - 4.1 $14.00 181,000 - 4.7 $ 9.64 45,000 - 4.9