Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Year End Results for 2004
OTTAWA, CANADA, May 18th, 2005 – Dynex Power Inc., a leading independent power semiconductor company, today announced results for the year ended December 31st, 2004.
Summary financial information in Canadian dollars for the twelve months
ended December 31st, 2004 is as follows:
The Company reported flat revenues with a gross margin of $2.4 million,
which was an improvement by $1.5 million from the $0.8 million reported
in 2003. The net loss from continuing operations of $5.4 million
represented an improvement of $2.1 million over the net loss from
continuing operations of $7.5 million reported in 2003. However, the net
loss of $5.4 million is significantly worse than the net loss of $2.1
million reported in 2003, which however included a one-time $3.9 million
gain on the sale of the microwave sensors business and net earnings from
that business of $1.5 million prior to its disposal.
Dr. Paul
Taylor, President and CEO commented “ 2004 has been a difficult year
with a tight liquidity position making it impossible to maintain an
efficient supply chain. The Company has been unable to complete orders
on time and this has affected adversely both our sales for the year and
our order intake. Despite the problems, we have arrested the decline in
revenue seen over the last few years but we know that we could have
invoiced more and taken more orders had we not had these internal
problems. It is particularly pleasing to see that we have improved the
gross margin by $1.5 million and the loss on continuing operations by
$2.1 million compared to 2003 by eliminating lower margin products,
identifying lower cost sources of raw materials, more efficient working
practices and tighter control of overhead costs”.
The
Company announced a major restructuring in October 2005, in which 40
indirect posts were eliminated from the organisation and further cost
savings of approximately $1.5 million in non-payroll costs were
identified. “It is worth remarking”, Dr Taylor said “that but for the
cost of that restructuring, the net loss on continuing operations would
have been $3.7 million lower than last year”.
Bob Lockwood,
CFO commented “although the first six months of 2005 will be difficult,
whilst we continue to mend the supply chain, we expect revenue for the
full year to at least equal if not exceed that of 2004. The work we did
in the last couple of months of 2004 on restructuring and cost savings
should enable us to report a further significant improvement in the
bottom line”. Industry analysts from Intex Marketing Services are
forecasting a compound annual growth rate of 10% in the power
semiconductor market over the next 5 years.
Dr Taylor concluded,
“we are, of course, not happy with the losses we made in 2004. But
revenue is recovering, costs have been reduced and steps have been taken
already to achieve further cost savings. As well, we are working to
improve the financial resources where we have received substantial help
from our customers, suppliers and financiers. Taken together, these
developments should enable us to return to profitability in the second
half of 2005”.
About the Company
Dynex is one of the world’s leading suppliers of specialist high power semiconductor products. Dynex Semiconductor Ltd is its main operating business and is based in Lincoln, England in a facility housing the fully integrated silicon fabrication, assembly and test, sales, design and development operations. Dynex primarily 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. The Company continues to produce and sell certain high reliability integrated circuits (IC’s) for use in specialist applications.
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.
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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