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UPDATE - Mirada shares rise 13% after it lands biggest ever contract

Published: 20:27 19 May 2014 AEST

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Audio-visual specialist Mirada (LON:MIRA) said it has landed a multi-million dollar contract “with a large established Latin American digital TV operator”.

The name of the customer and terms of the deal weren’t revealed. However the announcement followed the successful trial of the company’s iris tv-anywhere application, which itself was worth US$1.4mln.

“Typically, the set-up fees are no larger than half a million to a million [dollars], so this is very, very big. This is only the set-up fees,” chief executive Jose Luis Vazquez told Proactive Investors. 

And in a statement earlier, the company confirmed this is its biggest contract to date and said in the next three-to-five years revenues this one source could exceed Mirada’s current turnover. 

“It highlights the importance of our strategic shift to a scalable subscriber-based licence fee model,” Vazquez said.

"The company continues to explore a number of exciting opportunities with a view to building on today's success. We look forward to providing further updates in due course."

In a separate statement, the group said revenues “slightly” undershot expectations due to the continued investment on the aforementioned Latin American trial.

Balancing this, margins were stronger than anticipated, so EBITDA and the net result will “improve”.

Vazquez added: "This is an exciting period for the company. Rates of new subscribers gained are growing and we have seen a good momentum related to the upcoming World Cup in Brazil.

"Team morale is high as winning the tier-one deal opens a wide range of opportunities for the company and we are focused on winning further similar sized contracts in time.”

The shares, up over 50% in the past three months, advanced a further 13% to 16.25p in morning trade, valuing the business at £14mln.

Referring to contract win, City broker Daniel Stewart said: “The customer’s installed subscriber base of several million users will be targeted as Mirada aims to grow its subscriber-based licence fees.” 


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