The News

Myriad Group AG announces Q1 revenue of USD 30 million

02/06/2009

02 June 2009

• Combined revenues of USD 29.7 million, +337% from Q1 2008
• Cash position at USD 32.4 million
• Integration process confirmed on schedule
DUEBENDORF-ZURICH, Switzerland – June 2, 2009 – Myriad Group AG today reported revenue of USD 29.7 million, with gross profit of USD 17.9 million, or 60% of revenue, for the first quarter of 2009. The unaudited figures reflect the combined results of Myriad Group with Purple Labs, the industry leader in mobile phone browsers that Myriad acquired earlier this year.
 
“The combined Group revenues clearly underline our position as Europe’s largest mobile phone software company,” said Simon Wilkinson, CEO of Myriad. “Following the acquisition of Sagem Mobiles’ software activities and Purple Labs, we are now extending our customer relationships with new products and services in order to achieve our revenue plan of 5 million for the year.”
 
The acquisition of Purple Labs by Myriad was successfully completed in April 2009, and has been fully consolidated into Myriad Group AG financial statements as of 1 April 2009. Myriad reported the combined Q1 revenue as an indication of the strength of the new company.
 
Strong growth driven by recent acquisitions in the Device Solutions segment
 
Device Solutions – provided to leading manufacturers of mobile phones and other devices, this segment includes the Java products originally developed by Esmertec, the mobile phone software acquired from Sagem Mobiles in late 2008, and the Purple Labs portfolio. The Device Solutions segment reported revenue of USD 27.7 million for Q1 2009, 50% of these combined revenues derived from the license of Myriad software. Gross profit of the Device Solutions segment reached USD 16.7 million, 60% of the combined revenues.
 
In order to better align revenues with invoicing and cash, as well as enable faster reporting of quarterly reports, Myriad implemented a new revenue recognition policy for its Device Solutions license revenue from the start of 2009.
 
Mobile Services Platforms – which includes the company’s customer self-care solutions, reported revenue of USD 2 million during Q1 2009, +33% from Q1 2008. During the period, Myriad gained one new customer in the African region, reaching a customer base of 30 mobile network operators worldwide, as well as preparing other customer deployments for Q2. Gross profit of the Mobile Services Platforms segment reached USD 1.2 million, 60% of the segment revenue.
 
Strong cash position
As of March 31, 2009, Myriad Group held cash, cash equivalents and marketable securities of USD 32.4 million, on a combined basis.
 
Integration running on schedule
Since mid-March 2009, the integration process has moved ahead rapidly, as Myriad optimises its staff resources and aligns them within common facilities, processes and infrastructure. The targeted USD 13 million of cost savings, resulting from synergies within the Group, are re-confirmed and the majority of the consolidation will be completed by mid-2009.
 
 
Investor Relations
Steve Langkamp                               Nicolas Fiorini
Chief Commercial Officer                   Head of Corporate Strategy
Tel:+44 161 486 5090                       +41 44 823 8900
 
Email: investor_relations@myriadgroup.com
 
General Inquiries
Kate Hamilton
Director of Marketing
Tel: +44 1252 519832
 
Email: press@myriadgroup.com