Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces First Quarter Results for 2005
OTTAWA, CANADA, May 30th, 2005 – Dynex Power Inc., a leading,
independent power semiconductor company, today announced results for the
first quarter of 2005.
Summary financial information in Canadian
dollars for the three months ended March 31st, 2005 is as follows:
The Company indicated in its March 31st 2005 earning caution that results in the first and second quarter would be adversely impacted by the tight liquidity situation in the early part of the quarter. Constraints on the acquisition of raw materials and piece parts meant that revenue in the quarter fell to $4.2 million, which is too low for the Corporation to be profitable. Consequently a loss at the gross margin level of $580,000 and a net loss of $1.6 million were reported.
Dr Paul Taylor, President and Chief Executive Officer, commented “we are not happy with our performance in the first quarter, but there is an underlying trend of improvement. We have obtained new finance in the period that has enabled us to tackle the supply chain problems, but it will take several months to get back to normal operation. We are also seeing the benefits of the cost cutting and restructuring we began in the last months of 2004. We are encouraged by signs of recovery in revenue, the strength of our order book, the good level of new order bookings and the help and support we are getting from our suppliers”.
Bob Lockwood, Chief Financial Officer said “We started from a very low
base in January, due to the supply chain problems, but revenue grew in
February and March and that growth has continued into the second
quarter. Higher revenue figures and the lower fixed cost base following
the recent restructuring actions mean that we are confident of achieving
a significantly better result in the second quarter. As regards
longer-term expectations, we are operating on or slightly better than
the plan we developed at the time we secured our last round of
financing. We currently anticipate that our operations through the
remainder of the year will meet our expectations”.
About the Company
Dynex is one of the world’s leading designers and manufacturers of industrial high power semiconductors. Their capabilities permit the manufacture of both standard bipolar semiconductors and insulated-gate bipolar transistors (IGBTs). Their products are used to improve the reliability and quality of power generation, transmission and distribution systems, marine and rail electric drives, aero-technology electric systems, induction heating applications, industrial motor drives and controls and the next generation electric vehicle drive technologies. Dynex is headquartered in Lincoln, UK, which houses the manufacturing, silicon fabrication, marketing and sales, design and research & development operations. Sales staff operate worldwide.
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:
Bob Lockwood
Chief Financial Officer
Dynex Power Inc.
Tel: UK 44 (0) 1522 502 920
Email: bob_lockwood@dynexsemi.com
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