Mirada's revenue trounces expectations as Mexican project drives growth

Digital TV software solutions provider Mirada on Monday reported that annual revenues are expected to beat its expectations, aiding a swing back to positive earnings.

For the year ended 31 March, the AIM traded company anticipates a 40% increase in revenues to $12.3m, compared with $8.8m for the year before, while adjusted EBITDA after share-based payment charge and capitalisation is expected to reach $0.6m, as opposed to the loss of $1.1m registered the year before.

Mirada attributed the revenue growth to its continued relationship with Mexican outfit izzi Telecom and its successful deployment of its Iris multiscreen solution, with izzi extending its deployment of the solution over the middle and premium tiers of its customers and having now deployed over two million set top boxes with Mirada's technology.

Outside of Mexico, the company has seen the commercial launch of its Iris solution in Bermuda and Bolivia, while a further commercial launch in Mongolia is anticipated later this year.

The opening of a new office in Castellón is also expected to drive down operating costs as the company seeks to exploit a "very competitive" labour market in the region.

Net debt dropped from $11.7m at 31 March 2018 to $4.9m at 31 March 2019, primarily due to the loan capitalisation and equity funding completed in September.

Jose Luis Vazquez, chief executive of Mirada, said: "Mirada has delivered a year of strong growth in both revenue and EBITDA, which I am pleased to say is above board expectations. This growth has been underpinned by new contract wins and the excellent work we continue to carry out with our clients. The board is confident in the outlook for the new financial year, as well as the long-term prospects of the company."

Mirada's shares were down 9.09% at 0.75p at 1315 BST, having earlier risen to 0.93p and giving the company a market cap of roughly £6.81m.