ZURICH, Switzerland – 21 March 2018: Myriad Group AG (SIX Swiss Exchange: MYRN) today announced its preliminary unaudited financial results for year ending 31 December 2017 and provides a business update.
Preliminary Unaudited Financial Results
- The Company expects to report revenue broadly on the level of the previous year of about USD 14.6 million for FY 2017 (FY 2016: USD 14.7 million).
- Loss from operations is expected to be in the range USD 5.8 to 6.5 million compared to USD 28.2 million loss in FY 2016.
- Cash and cash equivalents at 31 Dec 2017 were USD 28.2 million, compared to USD 19.2 million at 31 Dec 2016.
- Full-set of FY 2017 results will be published post delisting together with the invitation to the Annual General Meeting which is set for 22 June 2018 at Zurich Airport.
Following a successful conclusion of the rights-issue announced in August 2017, the Company raised USD 19.5 million, before associated fees and stamp duty. Recording a closing cash balance at the end of 2017 of USD 28.2 million, the Group is well capitalised to continue to invest in its two new propositions Thingstream (IoT communications platform) and Connect Hub (mobile added value services to enterprise) which were introduced during 2017.
Over the second half of 2017 and early 2018, the Company has made significant progress in simplifying the organisation in readiness for delisting at the end of April 2018. This is reflected in continuing restructuring activity to ensure the organisation can maximise the value from historical business lines in Device Solutions and Connect Core. These units continue to make a positive operating contribution to the Group, before allocating corporate overheads, allowing the proceeds raised in August to be allocated to developing new business opportunities with Thingstream and Connect Hub. The Device Solutions Division has continued to benefit from the extension of licencing deals as we continue to agree end-of-life terms with Java customers. All operating costs and the associated cash outflows relating to Versy have now ceased as the application has been withdrawn from use.
During 2017, Thingstream has been successfully launched with pilot customers and has earned nominal revenue from early commercial deals. Early market feedback is encouraging, building on the technical recognition the Company received from IoT Evolution World magazine for IoT Product of the Year in the second half of 2017. These early customers are enabling Myriad to test its infrastructure and build up operating capabilities to support the future growth of the business. Early progress with commercial customers is steady as we seed the market with developer kits and begin to enter conversations with customers building their next generation of IoT solutions.
The continued focus in the first half of 2018 will be on building an ecosystem of enabling relationships with both hardware manufacturers and software platforms. This will help us to continue to build a strong opportunity pipeline to convert into recurring revenue in the coming year.
The Connect Division, comprising USSD Core and Connect Hub operating segments, has maintained a strong presence in its key markets in Africa and Latin America, continuing to provide high quality service to major telco customers such as Orange and Telefonica. As the Company already communicated in early 2017, price pressure in our traditional USSD infrastructure business continues to persist, which triggered a decline in revenue from USSD Core in 2017 compared to 2016.
The business has encountered delays achieving reach agreements with mobile network operator partners in our target markets for Connect Hub, which means that the ability to launch commercial pilots for enterprise services and generate revenue is taking longer than initially expected. Myriad continues to pursue these opportunities and is now targeting achieving reach coverage with initial target countries and live commercial engagements in 2018.
Myriad Group AG will delist from SIX Swiss Exchange on 30th April 2018; the final day of trading on SIX will be 27th April 2018. The Board of Directors will appoint BZ Bank Aktiengesellschaft to engage in over-the-counter trading of the Myriad Shares following the delisting of the Myriad Shares, further details regarding this will be provided shortly on the share info section of our web-site.
Information on Myriad’s Annual Report and Annual General Meeting (AGM).
FY 2017 audited Financial Results will be finalised after delisting from the SIX Swiss Exchange (SIX) and will consequently not be published through SIX. However, these 2017 financial statements will be made available on the financial publications section of our website at the end of May, at the same time as the invitation to our Annual General Meeting is issued. The Annual General Meeting is set for 22 June 2018 and will again be held at Zurich Airport, in the visitors room on Observation Deck B.