Myriad Group reported solid underlying core revenues of $35.1 million, and EBITDA2 of $7.3 million for the first half of 2011.
“We have achieved a solid underlying growth of 7% on a like-for-like basis, excluding the Sagem Wireless revenues. The business has responded positively in the last 6 months to build revenues from new accounts. Further, we continue to make good progress on reducing operating costs. The business ended the period with $16.4 million in cash, and Myriad’s cash reserves were boosted through the receipt in September 2011 of $12 million from legal settlement of its dispute with Openwave Systems,” said Simon Wilkinson, CEO of Myriad Group.
Revenue for the first half of 2011 amounted to $35.1 million compared to $57.9 million for the corresponding period in 2010. The decline is entirely due to the early termination of the contract with Sagem Wireless (in September 2010). Excluding Sagem Wireless revenues, revenue grew on a like-for-like comparison by 7%.
The firm’s Device Solutions Division, which provides software and engineering services to leading manufacturers of mobile phones and other consumer equipment, reported revenue of $29.5 million for the first half of 2011.
Customers such as Cisco, Mediatek and Samsung continue to select Myriad as its partner of choice to power the consumer experiences of today and beyond.
The Mobile Services Division, which provides Social Network Services solutions and Self-Care services for mobile network operators, reported revenue of $5.6 million for the first half of 2011. The rollout of Myriad’s Mobile Social Network Services across Latin America with Telefónica commenced in the first quarter of 2011. Although deployment has been slower than initially expected, technical challenges have now been resolved and Myriad is confident that the expertise gained will enhance its ability to secure new customer wins, as well as increase the speed of future deployments.
Gross profit was $25.7 million for the first half of 2011, compared to $40.7 million for the corresponding period in 2010. Gross margin, at 73.3%, improved by 2.9 %age points compared to the previous year, driven by an increase in license margin.