Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Third Quarter Results for 2006
Recovery Continues
Lincoln, England, November 20th, 2006 – Dynex Power Inc., a
leading, independent power semiconductor company, today announced
results for the third quarter of 2006.
Summary financial
information in Canadian dollars for the three and nine months ended
September 30th, 2006 is as follows:
| Sept 30, 2006 $'000 |
Sept 30, 2005 $’000 | YTD 2006 $'000 |
YTD 2005 $’000 | |
| Revenue | 5,707 | 5,680 | 17,042 | 15,405 |
| Gross Margin | 1,039 | 886 | 2.957 | 646 |
| Net Earnings/(Loss) | (133) | (293) | (696) | (2,569) |
| No. of Common Shares-average | 32,196,183 | 25,973,642 | 30,650,637 | 25,876,616 |
| Earnings/(Loss) per Share in Dollars-diluted | (0.00) | (0.01) | (0.02) | (0.09) |
The Company’s revenue in the third quarter was 9% ahead of that reported
in the second quarter and the revenue for the year to date is 10% ahead
of the same period last year. Despite sharp increases in energy and
material costs, careful control of costs, efficiency improvements and
the elimination of lower margin products have meant that the loss for
the year to date is significantly lower than the first nine months of
last year. Further revenue growth is expected in the fourth quarter.
Management is forecasting a small profit for the fourth quarter, but
continued rises in UK energy prices and hence in other input prices will
impact negatively on the absolute level of that profit. As a
consequence, even though revenue and overheads are on plan, the profit
forecast for the fourth quarter is unlikely to be sufficient to enable
the Company to record the overall profit for the year that had hoped for.
Significant
orders have recently been reported for supplying products for both Royal
Navy Type 45 destroyers and to a high voltage direct current station in
the Gulf totalling $3.9 million and the receipt of a research and
development grant of $1.1 million. These events were complemented by the
completion of a new $5.2 million secured working capital facility with
Landsbanki.
Dr Paul Taylor, President and Chief Executive Officer
commented that “our third quarter performance confirmed that our
recovery continues and that the strategic direction we are pursuing is
being welcomed by the market. Whilst high energy costs and rising
material prices present the business with problems to overcome, the
strength of our order book and continuing management focus on tight
control of all our costs means that we can look forward to a return to
profitability in the fourth quarter.”
Bob Lockwood, Chief
Financial Officer, stated that “the revenue growth reported in the third
quarter was particularly pleasing as it had looked as though revenue
would be flat with the pick up only coming in the fourth quarter. The
trend lines in our performance are impressive. The small loss we
reported in the third quarter was expected. Revenue is expected to
continue its growth in the fourth quarter and management expects to be
able report a return to profitability in the final quarter. The full
year result will continue the strong trend of improvement seen over the
last few years and should provide a platform for a profitable year in
2007.”
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 wafer 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. The company continues to
produce and sell certain high reliability integrated circuits (ICs) for
use in specialist applications led by its proven radiation hard
Silicon-on-Sapphire products for space and nuclear applications.
The
press release may contain words such as “expects”, “may”, “believes” and
other similar language that are considered forward-looking statements or
information under applicable securities legislation. These statements
are based on Dynex Power’s current expectations, estimates, forecasts
and projections about the operating environment, economies and markets
in which Dynex Power and its subsidiary, Dynex Semiconductor operate.
These statements are subject to the uncertainties and vagaries of the
markets and the future, which could cause actual results to differ
materially from Dynex Power’s expectations, and which are each difficult
and subjective to forecast and as a consequence, recipients must make
their own independent judgments about the accuracy and reliability of
the information presented and the forward looking statements. For
additional information with respect to certain of these and other
factors, see Dynex Power’s Annual Report, Quarterly Reports and other
securities filings. Unless otherwise required by applicable securities
laws, Dynex Power disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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: UK +44 1522 500 500
Email: paul_taylor@dynexsemi.com
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