29th Sep 2015 07:39
LONDON (Alliance News) - Media technology company Mirada PLC on Tuesday issued a profit warning as it said it will take a hit in its current financial year from the deferral of licence fee revenues.
The company said it has been working on the roll-out of its Iris multi-screen product for Cablevisión Monterrey in Mexico, which started in February 2015. The initial deployment was the smallest of the roll-outs, and the company is now working on the next two networks in the roll-out, which are bigger than the first.
Having prevoiusly anticipated that the roll-out of these networks would take place in 2015, this has now been delayed to the final quarter of Mirada's financial year to the end of March 2016. As a result, the company expects to recognise only limited licence fee revenue from the two networks in the current financial year, with this revenue to be deferred into the 2017 financial year.
Mirada said it has been in talks to provide additional development work on the contract, for which professional services fees are earned. The company said these are broadly expected to replace the postponed licence fee revenue, albeit at a lower margin.
But notwithstanding those additional fees, the company said that owing to the delays on licence fee revenue, it expects its full-year earnings will miss market expectations, though they will be ahead year-on-year.
Shares in Mirada were down 23% after the open on Tuesday to 8.2 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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