Company News

UPDATE 2-Miranda Q3 profit falls 86 pct

* Q3 EPS C$0.05 vs C$0.32 yr ago

* Q3 rev down 15 pct

* Says broadcast equipment market has bottomed

* Shares fall 9 pct (Adds details, CEO comments, share movement)

Oct 30 (Reuters) - Canada's Miranda Technologies Inc MT.TO reported an 86 percent drop in quarterly profit, hurt by foreign exchange losses, a restructuring charge and higher expenses, sending its shares down 9 percent.

However, the broadcast equipment maker said it is beginning to see an increase in sales activity.

“While we believe that the broadcast equipment market has bottomed, the timing of a recovery remains uncertain,” Chief Executive Strath Goodship said in a statement. “We are beginning to see momentum build in our sales funnel.”

Miranda, which has facilities in the United States, Britain, Netherlands, France, Japan, UAE and China, said demand is being boosted mostly in international markets, particularly Western Europe.

The company said it plans to merge its electronic assembly manufacturing operations from Grass Valley facility with its Montreal operations by January, to improve operational efficiencies.

For the third quarter, Miranda earned C$1.1 million, or 5 Canadian cents a share, compared with C$7.7 million, or 32 Canadian cents a share, a year earlier.

Revenue fell 15 percent to C$31.8 million.

The company earned 6 Canadian cents a share, excluding a restructuring charge of C$0.4 million.

Analysts on average were expecting earnings of 10 Canadian cents a share, before special items, on revenue of C$32.6 million, according to Thomson Reuters I/B/E/S.

Miranda recorded foreign exchange losses of $1 million in the quarter, compared with a gain of $0.8 million, a year ago.

Shares of the company were down 7 percent, or 43 Canadian cents, at C$5.60 Friday morning on the Toronto Stock Exchange. They touched a low of C$5.52 earlier. (Reporting by Koustav Samanta in Bangalore; Editing by Ratul Ray Chaudhuri)