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Miranda Reports 2011 Fourth Quarter and Year-End Results

Miranda reports eighth consecutive quarter of strong growth (February 29, 2012)

MONTREAL, QUEBEC -- (Marketwire) -- 02/29/12 -- Miranda Technologies Inc. (TSX:MT), a worldwide provider of infrastructure, playout and monitoring systems for the television broadcast, cable, satellite and IPTV industry, today reported results for the fourth quarter and fiscal year ended December 31, 2011.

Financial Highlights: 2011 versus 2010

-- Record revenues for both the quarter and year -- Q4 2011 revenues up 12% to $50.1 million, annual sales up 27% to $181.9 million -- Gross profit as a percent of sales at 61% for the quarter and year -- Q4 EBITDA(1) up 10% to $8.7 million, full year EBITDA up 65% to $37.3 million -- Q4 2011 net profit up 4% to $3.5 million; annual net profit up 100% to $22.6 million -- During the year the Company repaid all of its loans and borrowings

Revenues for the quarter touched another record high reaching $50.1 million, up 12% over 2010. The gross profit margin also remained strong, coming in at 61% of sales. Net profit increased 4% to $3.5 million or 16 cents per fully diluted share, up from 15 cents per share in 2010. Quarterly profit before taxes was negatively impacted by a foreign exchange loss of $2.2 million and an increase in share-based compensation of $1.5 million, partially offset by a net Research and Development government grant of $0.8 million. Cash generation continued to be strong, with operating activities generating $9.8 million of cash flows for the quarter.



For the full year, sales totalled $181.9 million, up 27% from $143.7 million in 2010, or 30% higher on a constant currency basis. Growth was seen across all geographies, with sales to Canada, the United States, the United Kingdom and Other Countries rising 61%, 28%, 104% and 11% respectively over 2010. EBITDA increased 65% to $37.3 million, while net profit was up 100% to $22.6 million. Fully diluted earnings per share totalled $1.03 for the year, up from 50 cents in 2010. Operating activities generated cash of $26.8 million for the year, resulting in cash and cash equivalents of $31.4 million at year end.

(1) EBITDA is an adjusted financial measure related to cash earnings and is defined as net profit before interest expense less interest income, taxes, depreciation and amortization. See comment on adjusted financial measures which follows.

"We had another strong quarter, capping off a very successful year," commented Strath Goodship, Miranda's President and Chief Executive Officer. "Revenues and profitability were at record levels for 2011, reflecting our success at offering innovative solutions that deliver real value to broadcasters and television service providers. The growth strategies we have undertaken in recent years delivered the strong operational and financial performance we have seen over the last eight quarters. We plan to build on this positive momentum and deliver sustained long-term shareholder and customer value."

Year-over-year quarterly operating review: Q4 2011 versus Q4 2010

Revenue

Quarterly revenue totalled $50.1 million, coming in 12% better than last year, or 11% higher on a constant currency basis. The increase was driven by stronger sales in both the USA and United Kingdom, which increased 28% and 45% respectively. Sales in Canada and Other Countries were down 3% and 5% respectively. Some notable recent sales wins include Astro TV (Malaysia), BNT (Bulgaria), CBS (USA), DirectTV (USA), HBO (Latin America), Mayadeen TV (Lebanon), NBC (USA), NRK (Norway), TV2 (Denmark), Univision (USA), Vive TV (Venezuela) and Young Broadcasting (USA).

Gross Profit

Gross profit as a percentage of sales was 61%, up from 60% last year and at the upper end of our 57% to 61% targeted range. During the quarter, the gross margin was positively impacted by operational efficiencies, along with pricing, product and customer mix, partially offset by unfavourable foreign exchange fluctuations on materials.

Operating Expenses

Selling, General & Administrative expenses (SG&A) totalled $15.7 million or 31% of sales, compared to $15.2 million and 34% respectively in 2010. The increase was largely due to higher provisions for incentive plans.

Research and Development (R&D) expenses before tax credits were $6.2 million or 12% of sales, compared to $6.8 million and 15% of sales respectively in 2010. The decrease over 2010 is mainly due to a government grant received on qualifying R&D expenses for the development of technologies. Quarterly R&D expenses, net of tax credits, were $5.3 million or 11% of sales, versus $5.6 million and 12% of sales last year.

Net finance expense was $3.2 million, up from $1.2 million last year. The increase was largely due to higher unfavourable currency fluctuations in the quarter over 2010 and an increase in liabilities related to share-based programs. The foreign exchange loss for the current quarter was $2.2 million, or 10 cents per fully diluted share, versus $0.9 million and 4 cents per share in 2010.

EBITDA, Income Taxes and Net Profit

EBITDA totalled $8.7 million, up 10% from $7.9 million in 2010. EBITDA as a percentage of sales was 17%, down slightly from 18% last year.

Net profit was $3.5 million or 16 cents per fully diluted share, compared to $3.3 million and 15 cents respectively in 2010.

Liquidity and Capital Resources

Net operating activities generated $9.8 million of cash flows during the quarter. Cash and cash equivalents were $31.4 million at quarter end, down from $40.1 million at the end of the third quarter of 2011. During the quarter, $17.0 million of cash was used to pay off all of the Company's outstanding loans and borrowings.

Outlook

"Interest for our solutions continues to build, supported by some key upcoming events including the summer Olympics, the European football championships and US elections," commented Mr. Goodship. "With a sound business plan, a solid balance sheet, an extensive portfolio of innovative solutions and a broad market reach, we are well placed to capitalize on market opportunities."

Annual and Special Meeting of Shareholders

Miranda will be holding an Annual and Special Meeting of Shareholders at 10:00 a.m. (local time) on Tuesday, April 17, 2012 at the Hilton Montreal Bonaventure, 900 de la Gauchetiere West, Montreal, Quebec.

Conference call

Miranda Technologies Inc. (TSX:MT) will hold a conference call with financial analysts to present its 2011 fourth quarter and year end results on Wednesday February 29, 2012 at 9:00 AM (ET). Media and other interested parties are invited to join the conference call in listen-only mode.

DATE: Wednesday, February 29, 2012

TIME: 9:00 a.m. Eastern Time

CALL: (416) 981-9000 (for all Toronto and overseas participants) (800) 920-2191 (for all other North American callers) (Please dial in 15 minutes before the conference begins)

WEBCAST: On line at www.miranda.com or www.marketwire.com.

The webcast of the conference call will be available for a period of 90 days at www.miranda.com and www.marketwire.com. A recording of the conference call will also be available from 11:00 AM on Wednesday, February 29, 2012 to 11:59 PM on Wednesday, March 7, 2012 and can be accessed by dialling 1-800-558-5253 and entering the pass code 21576989# on your telephone keyboard.

Adjusted Financial Measures

We use earnings before interest, taxes, depreciation and amortization ("EBITDA") to compare our operating results from one period to another. EBITDA is an adjusted financial measure related to cash earnings and is defined as net profit before interest expense less interest income, taxes, depreciation and amortization. Our method for calculating EBITDA may differ from that used by other companies under the same designation. EBITDA should not be substituted for net profit as an indicator of operating results in line with IFRS, neither for cash flows from operating and investing activities as a measure of liquidity and cash flows. Please refer to the reconciliation of net profit to EBITDA in the following table.

Reconciliation of Net Profit to EBITDA

---------------------------------------------------------------------------- (in thousands of Canadian dollars) Quarters ended Dec. 31 Years ended Dec. 31 ------------------------------------------------ 2011 2010 2011 2010 ---------------------------------------------------------------------------- Net profit 3,476 3,332 22,560 11,254 Interest expense 49 185 452 145 Income taxes expense 2,660 1,411 4,191 2,051 Depreciation of PPE(i) 1,153 1,119 4,102 3,978 Amortization of intangible assets 1,351 1,825 6,020 5,173 ---------------------------------------------------------------------------- EBITDA 8,689 7,872 37,325 22,601 ---------------------------------------------------------------------------- (i)PPE: Property, Plant and Equipment

Forward-looking Statements

This media 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 Risks and Uncertainties in the Company's Annual Management's Discussion and Analysis, 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.

About Miranda

Miranda Technologies is a leading worldwide provider of hardware and software solutions for the television broadcast, cable, satellite and IPTV industry. Its solutions span the full breadth of television operations, including production, playout, and delivery.

With a wealth of experience in delivering IT-based and traditional television systems, Miranda is uniquely positioned to help customers enhance their facilities, while generating additional revenue, reducing costs and streamlining operations.

For over 21 years, Miranda's growth has been driven by continuous innovation, along with close customer partnerships focused on helping them achieve their business objectives. To deliver this support, Miranda employs 700 people globally, in both developed and emerging markets. Miranda's head office is located in Montreal, and it has regional facilities in the United States, the United Kingdom, France, the United Arab Emirates, Japan, Malaysia, Singapore, Hong Kong and mainland China. A public company since December 2005, Miranda's shares (TSX:MT) are traded on the Toronto Stock Exchange. More information on the Company can be found at www.miranda.com.

MIRANDA TECHNOLOGIES INC. Consolidated Statements of Financial Position As at December 31, 2011 and 2010 and January 1, 2010 (In thousands of Canadian dollars) (Unaudited) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- December 31, December 31, January 1, 2011 2010 2010 ---------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 31,367 $ 30,486 $ 29,264 Temporary investments - 4,999 19,904 Trade and other receivables 42,547 29,546 25,601 Inventories 20,350 20,405 14,512 Income taxes and tax credits receivable 3,453 5,307 5,808 Prepaid expenses and other 2,035 2,066 1,650 ---------------------------------------------------------------------------- 99,752 92,809 96,739 Tax credits receivable 11,352 9,350 1,870 Property, plant and equipment 32,548 30,923 29,109 Intangible assets 34,081 39,429 20,960 Goodwill 44,745 44,219 20,562 Deferred tax assets - 579 485 ---------------------------------------------------------------------------- Total assets $ 222,478 $ 217,309 $ 169,725 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities Current liabilities Trade and other payables $ 25,045 $ 21,139 $ 13,505 Provisions 1,762 1,808 2,071 Deferred revenue 6,229 5,934 2,327 Income taxes payable 4,143 2,329 1,239 Loans and borrowings - 3,119 9 ---------------------------------------------------------------------------- 37,179 34,329 19,151 Other payables 391 942 555 Provisions 1,655 964 933 Deferred revenue 3,595 3,590 3,601 Loans and borrowings - 22,251 136 Deferred tax liabilities 14,161 13,772 8,124 ---------------------------------------------------------------------------- Total liabilities 56,981 75,848 32,500 ---------------------------------------------------------------------------- Equity Share capital 98,221 98,103 103,165 Contributed surplus 5,042 4,655 4,413 Retained earnings 62,884 40,324 29,647 Accumulated other comprehensive loss (650) (1,621) - ---------------------------------------------------------------------------- Total equity 165,497 141,461 137,225 ---------------------------------------------------------------------------- Total liabilities and equity $ 222,478 $ 217,309 $ 169,725 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- MIRANDA TECHNOLOGIES INC. Consolidated Statements of Comprehensive Income Three-month periods and years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except per share amounts) (Unaudited) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended Years ended December 31, December 31, ------------------------- ------------------------ 2011 2010 2011 2010 ---------------------------------------------------------------------------- Revenue $ 50,090 $ 44,885 $ 181,883 $ 143,673 Cost of sales 19,741 18,171 71,663 58,803 ---------------------------------------------------------------------------- Gross profit 30,349 26,714 110,220 84,870 Selling, general and administrative expenses 15,706 15,199 61,215 51,247 Research and development expenses, net of tax credits of $952 and $4,875 (2010 - $1,277 and $8,124) 5,261 5,552 22,732 17,918 ---------------------------------------------------------------------------- Results from operating activities 9,382 5,963 26,273 15,705 ---------------------------------------------------------------------------- Finance income (138) (47) (2,716) (744) Finance costs 3,384 1,267 2,238 3,144 ---------------------------------------------------------------------------- Net finance expense (income) 3,246 1,220 (478) 2,400 ---------------------------------------------------------------------------- Profit before income taxes 6,136 4,743 26,751 13,305 Income taxes expense 2,660 1,411 4,191 2,051 ---------------------------------------------------------------------------- Net profit for the period (year) 3,476 3,332 22,560 11,254 ---------------------------------------------------------------------------- Other comprehensive loss (income): Foreign currency translation differences for foreign operations, net of taxes 1,243 1,950 (971) 1,621 ---------------------------------------------------------------------------- Total comprehensive income for the period (year) $ 2,233 $ 1,382 $ 23,531 $ 9,633 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share: Basic $ 0.16 $ 0.15 $ 1.04 $ 0.50 Diluted 0.16 0.15 1.03 0.50 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- MIRANDA TECHNOLOGIES INC. Consolidated Statements of Cash Flows Three-month periods and years ended December 31, 2011 and 2010 (In thousands of Canadian dollars) (Unaudited) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended Years ended December 31, December 31, ------------------------- ------------------------- 2011 2010 2011 2010 ---------------------------------------------------------------------------- Operating activities: Net profit for the period (year) $ 3,476 $ 3,332 $ 22,560 $ 11,254 Reconciliation of non- cash items: Depreciation of property, plant and equipment 1,153 1,119 4,102 3,978 Amortization of intangible assets 1,351 1,825 6,020 5,173 Stock-based compensation 101 61 387 242 Net interest expense 49 179 452 139 Income taxes expense 2,660 1,411 4,191 2,051 Effect of exchange rates on long-term monetary assets and liabilities 228 (114) (36) (125) Effect of exchange rates on cash and cash equivalents 724 1,137 (543) 1,357 ---------------------------------------------------------------------------- 9,742 8,950 37,133 24,069 Changes in non-cash operating working capital items: Trade and other receivables (5,600) (374) (12,939) (1,666) Inventories 1,100 (225) 56 (5,794) Income taxes and tax credits receivable 2,157 (1,187) (66) (7,088) Prepaid expenses and other (4) (427) 34 161 Trade and other payables 2,473 514 3,315 4,620 Provisions (29) (400) 636 (128) Deferred revenue 596 416 271 857 ---------------------------------------------------------------------------- Cash generated from operating activities 10,435 7,267 28,440 15,031 Income taxes paid (593) (584) (1,598) (1,276) ---------------------------------------------------------------------------- Net cash from operating activities 9,842 6,683 26,842 13,755 ---------------------------------------------------------------------------- Investing activities: Proceeds from sale of temporary investments - (10) 4,999 14,905 Additions to property, plant and equipment (502) (669) (5,667) (3,381) Additions to intangible assets (10) - (147) - Business acquisition, excluding cash - - - (40,692) Interest received 64 22 157 187 ---------------------------------------------------------------------------- Net cash used in investing activities (448) (657) (658) (28,981) ---------------------------------------------------------------------------- Financing activities: Repayment of loans and borrowings (17,000) (919) (25,391) (937) Increase in loans and borrowings - 12 - 25,012 Redemption of shares - 2 - (5,658) Proceeds from exercise of stock options - - 118 19 Interest paid (113) (207) (609) (332) ---------------------------------------------------------------------------- Net cash (used in) from financing activities (17,113) (1,112) (25,882) 18,014 ---------------------------------------------------------------------------- Effect of exchange rates on cash and cash equivalents (724) (1,137) 543 (1,357) Effect of exchange rates on cash and cash equivalents related to translation of foreign operations (256) (299) 36 (299) ---------------------------------------------------------------------------- Change in cash and cash equivalents (8,699) 3,478 881 1,222 Cash and cash equivalents, beginning of period (year) 40,066 27,008 30,486 29,264 ---------------------------------------------------------------------------- Cash and cash equivalents, end of period (year) $ 31,367 $ 30,486 $ 31,367 $ 30,486 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Contacts:
Source:
Miranda Technologies Inc.

Contacts: Investors and Media
Mario Settino
Chief Financial Officer
Miranda Technologies Inc.
Tel.: (514) 333-1772


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