Listing: TSX Venture Exchange
Symbol: DNX
Dynex Issues Caution in Respect of Q1 Earnings
Concern
about first six months results offsets strong market
Lincoln, England. March 31st 2005 -- Dynex Power Inc., a leading independent power semiconductor company, today announced that the full benefits of the previously announced restructuring and the new term loan announced on March 30th 2005 will be delayed by what management believes will be approximately two quarters due to the residual impact of the tight liquidity situation. Consequently, the Company is advising that neither sales nor profitability will meet its first and second quarter expectations.
The delays caused by the Company failing to agree terms with a proposed
new asset-based lender resulted in a significantly tightened liquidity
situation, constraining the acquisition of raw materials and piece
parts, which in-turn damaged revenue opportunities. Although the new
term loan will recover the situation it will take several months to see
the full benefits in improved revenues.
Dr. Paul Taylor, President and Chief Executive Officer, commented, “This
has been a difficult period for the Company, notwithstanding the fact
that the conditions in the high-power semiconductors market have
continued to improve, as well as the fact that the Company’s order book
has remained intact. The failure to reach agreement with a new lender
damaged the Company’s financial performance. However the decision by our
Directors to advance a loan has enabled us to implement our recovery
plan and we fully anticipate steady improvement over the next few months.
David Banks, Chairman, also commented “The board is gratified with the
new, downsized business model. We believe the results will prove us
right. In addition, the fact that the Company’s good financial
performance, which will likely result in a small pre-exceptional profit
in Q4 2004, provided evidence that the imposition of the new business
model was effective and has increased our confidence about the future
prospects of the Company.”
About the Company
Dynex is one of the world’s leading suppliers of specialist high power semiconductor products, and is based in Lincoln, England in a facility housing the fully integrated silicon fabrication, assembly and test, sales, design and development operations. Dynex designs and manufactures high power bipolar discrete semiconductors, power modules, including insulated-gate bipolar transistors (IGBTs), and high power electronic assemblies. Dynex products are used world wide in power electronic applications including electric power generation, transmission and distribution, marine and rail traction drives, aircraft, electric vehicles, industrial automation and controls.
Press announcements and other information about Dynex are available on the World Wide Web at http://www.dynexsemi.com.
All monetary values expressed in this release are in Canadian dollars unless stated otherwise.
The TSX Venture Exchange has neither approved nor disapproved of the information in this press release.
For more information:
Dr Paul Taylor
President and Chief Executive Officer
or
Bob
Lockwood
Finance Director and Chief Financial Officer
Dynex Power Inc.
Tel: +44 1522 500 500
Email: paul_taylor@dynexsemi.com
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