Myriad Group Announces Strong Growth in Fiscal Year 2009

“When we announced the creation of Myriad Group in February last year we set ourselves the challenging revenue target of USD 125 million, I am pleased to confirm today that we have met that target. Despite tough market conditions, Myriad has enjoyed the support of current and new customers to reinforce our claim to be Europe’s largest independent mobile software vendor,” said Simon Wilkinson, CEO of Myriad.

Revenue growth driven by Device Solutions division The Device Solutions division – which provides software and engineering services to leading manufacturers of mobile phones and other devices – reported revenue of USD 112.6 million for FY 2009. Q4 revenues were USD 28.8m reflecting stable demand for products and services with closing backlog of USD 125.8m. Key trading highlights included the securing of a c. USD 5m renewal for messaging and browser with Samsung, the closure of a contract to deliver the next-generation ‘Open Internet Browser’ product to a key customer and the winning of a major engagement to deliver engineering services on the Android platform.

The Mobile Services division – which provides self-care services and other solutions for mobile network operators – reported revenue of USD 13.0 million for FY 2009 down USD 3.6 million year on year. Q4 revenues were USD 2.9m, up USD 0.3m on Q3, with a closing backlog of USD 2.3m. The year on year decline reflects a global slowdown in infrastructure spend by mobile network operators. Following a leadership and sales team restructure, management believes the division is well placed to exploit the expected recovery in operator spending as well as emerging market growth in 2010.

In September 2009, Myriad announced the acquisition of Xumii Inc., a start-up company that pioneered the use of “cloud-based” technologies to connect mass-market phones to multiple social networks simultaneously. In December 2009, Myriad signed its first Xumii services agreement with a mobile network operator. Revenues for this Xumii deployment will begin in 2010 Q1 and be reported within the Mobile Services division.

The net cash position increased by USD 32.1 million during Fiscal Year 2009 reflecting USD 15.1m net cash from the acquisition of Purple Labs and USD 17.0m from underlying cash generation and strong working capital management. Cash & cash equivalents, short-term investments and marketable securities as at 31 December 2009 were USD 38.4 million.

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