The company also reports today that during 1st
half of 2013 it has reached 13 million registered users of its Instant
Messaging Service in Latin America, a market where the company has
access to a total of 450 million mobile users through its operator
partners. Including new partnerships in India, Myriad has entered
business relations with operators that provide service to 1 billion
users worldwide. In addition, it has also seen significant growth in
deployments of its Facebook for USSD
service with 10 operational deployments across Africa, India and Latin
America and agreements to launch the service with a further 25
operators.
With
strong demand being seen for its new services, a proposition that,
uniquely, brings instant messaging to the entire mobile user base
including the 80% of users in emerging markets who do not have
smartphones, and substantial valuations for comparable instant messaging
companies in Asia and Europe, Myriad has an opportunity to deliver
significant value to customers and shareholders through effective
exploitation of its messaging portfolio.
At
the same time, the company has seen material changes in market
conditions that are accelerating the predicted decline in revenues from
its legacy product lines, particularly in the Device Solutions Division.
In
order to ensure Myriad has sufficient funds to successfully execute its
growth strategy, while maximizing the value of its embedded software
assets in the Device Solutions Division and accelerating further
restructuring of the business, the Group is launching a rights issue for
up to 30,566,830 shares at a subscription price of CHF 1.10 per share.
The company announces that it is calling an EGM on 15th August 2013 to consider two resolutions:
- The appointment of a Non–Executive Director
- The increase of Ordinary Share Capital
Detailed information on the rights issue and the associated EGM can be found on the company’s website at http://www.myriadgroup.com/investors/shareholder-meetings.aspx
Erik
Hansen, Chairman, of Myriad Group AG, commented: “Following a
challenging year in 2012, Myriad entered 2013 with a new management
team, the transition process post the Synchronica acquisition close to
completion, and a focus on substantial growth opportunities that it was
seeking to exploit. I am pleased with the progress the company has made
in the first half of the year and am confident that with strong demand
being seen for its new messaging solutions and new funding in place, the
company can continue to build on the platform for growth it has
established during 1st half of 2013.”
Revenue
for the first half of 2013 amounted to USD 21.5 million compared to USD
25.1 million for the corresponding period in 2012. The decline compared
to the corresponding period in 2012 reflects a reduction in consulting
services revenues across the business as we continue to focus on the
more profitable revenue streams in Mobile Social Messaging.
Gross profit
was USD 5.3 million for the first half of 2013, compared to USD 4.6
million for the corresponding period in 2012. Gross margin improved by
6.4 percentage points to 24.5% due to the rise in higher margin licence
revenues as a proportion of overal revenues and the fall in amortisation
of intangibles.
EBITDA
(before restructuring charges and non-recurring items) amounted to a
USD 2.3 million loss and EBITDA margin of (11)% for the period. This
compares with USD 6.3 million loss and (25)% margin in the first half of
2012.
Research & Development (R&D)
costs pre capitalisation and restructuring, decreased to USD 5.9
million compared to USD 10.4 million in the previous year. As a
percentage of revenue, R&D was 27.5% in the first half of 2013
compared with 41.5% in the corresponding period in 2012..
Sales and marketing (S&M)
costs pre restructuring, amounted to USD 3.2 million in the first half
of 2013. As a percentage of revenue, S&M expenses decreased by 5.8
percentage points compared with the same period last year.
General and administrative (G&A)
pre restructuring, doubtful debt and depreciation expenses decreased to
USD 5.2 million from USD 6.0 million in the first half of 2013.
Managing the cost base
As
the business transitions rapidly from legacy embedded software to high
growth messaging services during the first half, Management has looked
aggressively at our cost base as the results indicate. Management will
continue to ensure that resources are allocated appropriately to drive
revenue potential of the relevant business going forward.
EBIT
without exceptional charges (restructuring, integration costs and
non-recurring items) came to a loss of USD 7.4 million in the first half
of 2013 compared to a loss of USD 15.0 million in the first half of
2012.
Net Loss
for the first half of 2013 after interest and tax was USD 10.6 million
(USD 9.1 million excluding exceptional charges) compared to a net loss
of USD 21.3 million in the prior half year period.
Balance sheet
Myriad’s balance sheet structure as at 30 June 2013 included
shareholders’ equity of USD 25.3 million and an equity ratio of 25.6%
(before the latest rights issue, also announced today).
Interim consolidated income statement
in USD ‘000 |
HY 2013
unaudited |
HY 2012
unaudited | |
License revenue
|
11,273
|
10,702
| |
Service revenue
|
10,196
|
14,437
| |
Total revenue
|
21,469
|
25,139
| |
Cost of revenues (including amortisation)
|
(15,999)
|
(20,512)
| |
Gross profit before restructuring
|
5,470
|
4,627
| |
Research and development, net of capitalized costs
|
(4,144)
|
(7,529)
| |
Sales and marketing
|
(3,169)
|
(5,198)
| |
Doubtful debt credit / (expense)
|
150
|
(245)
| |
General and administrative1
|
(5,156)
|
(5,967)
| |
Other income
|
456
|
310
| |
EBITDA before restructuring charges
and exceptional acquisition / legal costs |
(2,261)
|
(6,315)
| |
EBITDA margin
|
(10.5)%
|
(25.1)%
| |
Restructuring and integration costs
|
(1,196)
|
(1,174)
| |
Acquisition costs
|
-
|
(4,289)
| |
French social plan costs not reimbursed by Sagem Wireless
|
(259)
|
(631)
| |
EBIT
|
(8,889)
|
(21,052)
| |
EBIT without exceptional charges
|
(7,434)
|
(14,958)
| |
Financial result, net
|
(1,267)
|
(1,143)
| |
Income tax (expense) / benefit
|
(423)
|
857
| |
Net loss for the period
|
(10,579)
|
(21,338)
|
Note:
(1) G&A expenses shown in the table exclude deprecation costs of USD 1,041,000 and USD 956,000 for HY 2013 and HY 2012, respectively.
(1) G&A expenses shown in the table exclude deprecation costs of USD 1,041,000 and USD 956,000 for HY 2013 and HY 2012, respectively.
Segment information HY 2013
In USD ‘000
|
Device Solutions Division
|
Mobile
Services Division |
Total
Myriad Group | ||||
1st Half Year
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
| |
License revenue
|
5,047
|
7,677
|
6,226
|
3,025
|
11,273
|
10,702
| |
Service revenue
|
3,899
|
6,316
|
6,297
|
8,121
|
10,196
|
14,437
| |
Total revenue
|
8,946
|
13,993
|
12,523
|
11,146
|
21,469
|
25,139
| |
EBITDA before restructuring charges and exceptional costs
|
1,075
|
(113)
|
(3,336)
|
(6,202)
|
(2,261)
|
(6,315)
| |
EBITDA margin
|
12.0%
|
(0.8)%
|
(26.6)%
|
(55.6)%
|
(10.5)%
|
(25.1)%
| |
Restructuring and integration costs
|
(496)
|
(354)
|
(700)
|
(820)
|
(1,196)
|
(1,174)
| |
Synchronica acquisition expenses
|
-
|
(4,289)
| |||||
French Social Plan Costs
|
(259)
|
(631)
| |||||
EBITDA
|
579
|
(467)
|
(4,036)
|
(7,022)
|
(3,716)
|
(12,409)
| |
Balance sheet information as of 30 June 2013 / 31 Dec 2012
in USD ‘000
|
30 June 2013
|
31 Dec 2012
| ||
Current assets
|
18,493
|
21,780
| ||
Non-current assets
|
80,557
|
84,864
| ||
includes Intangible assets
|
77,435
|
80,209
| ||
Total assets
|
99,050
|
106,644
| ||
Total liabilities
|
73,722
|
72,647
| ||
Total equity
|
25,328
|
33,997
| ||
Equity ratio
|
25.6%
|
31.9%
| ||
The Half Year Report 2013 is published in full on the company’s website:
Contacts
About Myriad
Myriad
delivers consumer applications, messaging solutions, and embedded
software to leading OEMs, mobile operators, and pay TV providers
worldwide.
Our
messaging services deliver email, instant messaging and social
networking to tens of millions of users in Latin America, Asia and
Africa. Working with some of the world’s most successful mobile phone
operators, Myriad’s market leading services enable consumers to connect
to Internet services they want to reach in simple and affordable ways.
In many cases, Myriad’s services are providing them with their first
experience of the Internet.
Our
market proven and innovative connected home solutions are found in
billions of mobile phones and tens of millions of set-top boxes and
Blu-ray players. Myriad is now driving the convergence of mobile,
tablets and TV having created a suite of exciting connected home
solutions including app stores for the TV, media sharing and simple
access to social networking services within a multi-device, multi-screen
connected home environment.
We
operate worldwide, with offices in Switzerland, France, UK, USA,
Canada, Mexico, India, UAE, China, South Korea, Taiwan, Japan, and the
Philippines. Headquartered in Zurich, Switzerland, Myriad is listed on
the SIX Swiss Exchange (SIX Symbol: MYRN).
For
more information please visit our website: www.myriadgroup.com. You can
also follow us on twitter@MyriadGroup and view our YouTube Channel -
YouTube.com/myriadgroupmarketing.
|
