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Riddler
Warning RNS.
Fall seems overdone to me... revenue inflow will be slower not lower over time. I don't see a return to 4s anytime soon but 3s yes.
Thoughts on the trading update? Seems like market has reacted OTT and worth buying but not without risks GL
Mirada seem to have just about turned the corner so they are not expecting and further fundraising rounds, plus seem to now have a healthy pipeline of potential new contracts:- "out of the 12 most likely opportunities that we are currently working on, six are situated in Eastern Europe, India and South East Asia, which indicates a healthy trend towards diversifying our business into these promising regions"
on any kind of volume
Half a million set top boxes cannot be wrong. I expect that this could be seen as the turning point for the product, and by implication, the company itself.
Announces an update on its largest customer deployment. Further to the trading update released on 12 October 2016, the rollout of the Iris product across izzi Telecom's full client base continues to progress well. Furthermore, the Company is pleased to announce that it has reached a milestone in this rollout with the successful installation of the first 500,000 set-top boxes using Mirada's software. Mirada expects to provide further details within its half year results, which are expected to be released in the third week of November 2016. Jose Luis Vazquez, Chief Executive Officer of Mirada, commented: "This milestone highlights the commercial success of Mirada's Iris platform following the successful launch of the deployment in Mexico on 4 July 2016. This demonstrates once more the superior technical and operational capabilities of our team and the commercial traction of our product."
Jolly, thanks for the response - ignoring all movements of capitalizing expenses, depreciation and amortization etc etc, I believe the revenue for the company in H1 will have been about £2.5million and cash cost of running the business about £3.5million so a deficit of around £1million. Based on the information today, I believe all that deficit has been closed by a reduction in receivables. Clearly the balance sheet is still weak but I believe if there had been a need for a placing it would have occurred already. Licence fee revenue should now be flowing in regularly on a monthly basis so while I believe net debt will remain higher than is ideal, it will now have peaked and the second half of the year should see a surplus of revenue to expenses of around £1million which should also convert equally on a cash basis. I was at the AGM a couple of weeks ago, simply haven't had chance to post a review yet, however the company seemed confident that this year would reach financial sustainability with the more reliable and frequent licence fee revenue and today confirmed that commercially things are on track. 2018 will then benefit further from the full 12 months of licence fees. I hope yesterdays 3.25p was the bottom
cash has gone up a lot less than availability of facilities has fallen, no? ..and why did they not just report net debt if fcf positive ..you don't have to be that experienced at this game to wonder whether riddler's placing is heading down the track imv ..dyor, all/never rely on Jolly
Jolly - my inference from the results today is that net debt has probably improved slightly (in euros, it may be different in pounds due to FX), however overall net current assets has probably weakened a bit further as receivables have converted to cash. I'm expecting first half to be loss making as the roll out and licence revenue only commenced half way through the period, but then second half to be stronger (as it has been in recent years) - broker forecast is for revenue of about £7.4million and fcf to be around zero for full year and then 2018 strengthens further from having a full year of licence fee revenue. I think the good news today is that the company has demonstrated it has plenty of available liquidity and that commercially the roll out is going as expected. If a placing was needed it would have happened already - the second half of the year, as long as performance continues as expected, will see positive FCF and so net debt and net current assets should improve.
wish they reported net debt..my suspicion comparing numbers in update with final results is that fcf is still significantly negative
Clearly some in the market agree. After all someone has to design and develop all those set top boxes that are replacing classic terrestrial TV everywhere.
Looks like the Televisa contract is going well and they are paying on time so now getting more cash in the bank - this is after all what we want.
therefore riddler's pov re possible placing is difficult to dismiss ...the huge spend on intangibles is the core challenge for fcf imv
The share price has dropped back to where it was, I think primarily due to the continued high net debt position, somewhat higher than I anticipated. I did think these results might not be enough to sooth the market that funding will be required and it will take until the interims. Overall.. - The company still has sufficient working capital facilities - £0.9million of short term lines and £2.9million of invoice discounting facilities, added to £0.7million of cash. - Trade and receivables is £3.8milllion but the commentary says that receivables fell to £1.4million. The balance of £2.4million is accrued income. As I understand it, a significant portion of this should have converted to receivables and subsequently have been invoiced on deployment, giving a significant boost to working capital. - Overall cash costs to the business for the year were around £7million - around £600k was interest charges and the costs of share issuance. If the more stable revenue from the new contract can be realized and they can start to move away from using short term, more expensive debt and invoicing discounting there is considerable savings to be made there. This year is the critical year - the company needs to demonstrate its investments can generate cashflow and the balance sheet can improve. I believe it should do and the interim results should give a good indication of that.
The share price has dropped back to where it was, I think primarily due to the continued high net debt position, somewhat higher than I anticipated. I did think these results might not be enough to sooth the market that funding will be required and it will take until the interims. Overall.. - The company still has sufficient working capital facilities - £0.9million of short term lines and £2.9million of invoice discounting facilities, added to £0.7million of cash. - Trade and receivables is £3.8milllion but the commentary says that receivables fell to £1.4million. The balance of £2.4million is accrued income. As I understand it, a significant portion of this should have converted to receivables and subsequently have been invoiced on deployment, giving a significant boost to working capital. - Overall cash costs to the business for the year were around £7million - around £600k was interest charges and the costs of share issuance. If the more stable revenue from the new contract can be realized and they can start to move away from using short term, more expensive debt and invoicing discounting there is considerable savings to be made there. This year is the critical year - the company needs to demonstrate its investments can generate cashflow and the balance sheet can improve. I believe it should do and the interim results should give a good indication of that.
As you predicted spike now 6m revenue indicating a much stronger second half.
A nice run up to the results with the bid price now at 5p. I expect the results to be good and the commentary to be especially upbeat. - Revenues of around £6million, meaning revenue for the second half was £3.8million, boosted by the roll out of the OTT solution in February. - I'm not going to speculate on EBITDA and PBT as its difficult to know what happens with amortization, however the £3.8million revenue in second half should have been higher than the cash cost of running the business. - We know cash was approximately £600k. Overall net current assets should be around £600k with long term debt at around £1.5million. - Overall net debt is likely to still be quite high - £2.5-3million, but this should no start to unwind as receivables and accrued income start to convert into cash. Hopefully there will be some initial indications on response to the roll out, also I expect guidance that free cash flow should be generated in 2017. I think there is still a concern held by the market that more equity is needed and I hope this is somewhat allayed by these results, although it may need the interims from this year which should be very strong. Overall I'm optimistic - the early release of results, coupled with the accompanying analyst presentation and the fact they have a reminder about the results on Twitter suggests they are pretty confident, but who knows how the market will react. I agree with rocker that this is worth 12p, although I suspect it will need a full year of free cashflow before the market believes it. Of course another deal would also be very helpful.