29 September 2015
mirada plc
(AIM: MIRA)
(“mirada”
or “the Company”)
Pre Close Trading
Update
mirada plc, (AIM: MIRA) the audio-visual interaction specialist,
announces a pre close trading update for the period ending
30 September 2015.
During the first half of the current financial year, the Company
continued to develop its Tier One and Tier Two customer
opportunities. The focus during the period was on the
commercialization of the Company’s multiscreen product, Iris, for
Cablevisión Monterrey (TVI)
("Cablevisión") in Mexico, part of
the Televisa Group, which commenced in February 2015. This initial deployment for
Cablevisión of around 500,000 subscribers is the smallest of the
planned roll-outs for the Company’s inaugural Tier One contract,
which now incorporates a total of five cable network deployments,
and the Board is happy to report that following the successful
launch, Mirada’s technology has performed without fault and the
deployment is running ahead of management expectations. In
addition, the Board was delighted to announce in August that the
Iris inspire user interface was being used by Movistar+, the
digital TV service from Telefónica Spain.
The next two networks within the original Tier One contract
which the Company is working on are on a larger scale than the
first deployment. Having anticipated that the roll out would
commence during this calendar year, the Board can now report that
owing to the customer's own internal reasons, deployment for these
two networks has been delayed to the end of the last quarter of the
current financial year ending 31 March
2016 ("FY16"). As such the Board anticipates that there will
be limited revenues from licence fees being recognized from these
two networks during FY16, instead with revenues being deferred into
financial year ending 31 March
2017.
In the meantime, the Company has been engaged with providing
additional development work for the Tier One contract for which
professional services fees are being earned. Broadly, these are
expected to replace postponed license fee revenues, albeit at a
lower margin. Notwithstanding these additional professional
services fees, owing to the delays deferring licence fees revenues
as described above, coupled with the Board’s anticipation of
earnings for the first half of FY16 being broadly similar to last
year, the Board expects earnings for FY16 to be materially behind
market expectations, but still ahead of last year.
As a consequence of the Company’s exposure to these types of
delays, and following rising levels of demand from Tier Two and
Tier Three customers, the Board is pleased to announce it will be
launching an advanced cloud-based proposition for these smaller
customers, named “mirada as a service” (“maaS”). MaaS is intended
to address the needs of a wide range of potential customers with a
bundle of products and services that the Board believes will speed
up the deployment and continuous upgrade of these customers’
Digital TV services. The Board expects maaS to generate a new
source of recurrent revenues for mirada, providing a hedge to Tier
One customer exposure. Further announcements on the timing of
maaS launch will follow in due course.
Commenting, Jose Luis Vazquez, Chief Executive Officer,
said:
“The Company’s primary focus remains to grow its pipeline with
the aim of further commercial roll-outs to new customers. We were
delighted by the successful adoption by Movistar+ of the Iris
inspire user experience and negotiations are continuing with
prospects for a number of potential customers in Latin America and Europe”
Enquiries:
mirada
plc
José Luis Vázquez, Chief Executive Officer |
+44 (0) 203 751
0320 |
Walbrook PR
Nick Rome/Sam Allen
mirada@walbrookpr.com |
+44 (0) 207 933
8783 |
Arden
Partners plc (Nomad and Broker)
James Felix (Corporate Finance)
Kam Bansil (Corporate Broking) |
+44 (0) 207 614
5900 |