MIRA.L Regulatory News (MIRA)

MIRADA PLC - Pre Close Trading Update

PR Newswire

London, September 29

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”

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