DUBENDORF‐ZURICH, Switzerland – 21 September 2010 – Myriad Group AG (SIX: MYRN), a global leader in mobile technology having shipped over 3.5 billion software applications on more than 2 billion phones, announced today that its major customer Sagem Wireless has, due to their difficulties, to terminate the contractual agreement with Myriad Group with immediate effect.
Myriad has supplied mobile software applications to Sagem Wireless since 2009. Sagem had contractually committed to pay Myriad Group fixed license and professional service fees for a three year period, starting in 2009.
Current financial information as at the end of August, 2010:
- The remaining value of this contract for Myriad Group AG amounts to revenue of USD 16.4 million for the period September 1 to December 31, 2010 and USD 35.8 million in FY 2011
- Outstanding receivables and accrued income amount to USD 12.8 million
Myriad Group, Sagem Wireless and Sagem’s main shareholders have signed a Settlement Agreement under whose terms Myriad shall receive a final amount of Euro 9 million in cash paid in three installments during October/November 2010. Myriad has also secured the transfer of over 250 wireless patents from Sagem Wireless as part of the settlement agreement. In addition and subject to consultation with the Myriad France works council, a majority of the employees that have served Sagem Wireless will be offered job opportunities outside Myriad Group.
Sales of Myriad’s mobile software applications to other major mobile handset manufacturers are not affected by this situation. Myriad will continue to supply its other handset customers with first grade software solutions and its network operator customers with USSD-based self-care platforms and social networking solutions. As of 30 June 2010, Myriad’s balance sheet contained equity of USD 86.8 million and cash and cash equivalents of USD 21.1 million, which in the meantime has increased to USD 34.7 million as at 31 August 2010.
Simon Wilkinson, CEO of Myriad comments: “Unfortunately, this event will have a material impact on our planned financial results for 2010. However, it does not change the longer- term prospects of our company. Our corporate strategy to move towards social networking and life services remains unchanged. The Telefonica deal (USD 80-100 million over five years), our planned product launches in 2010 and first half of 2011, and further deals we expect to sign, all provide opportunities to grow on a sustainable basis in the years to come.”