Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces First Quarter Results for 2007
Outlook Continues to Improve
Lincoln, England, May 30th, 2007 – Dynex Power Inc., a leading,
independent power semiconductor company, today announced results for the
first quarter of 2007.
Summary financial information in
Canadian dollars for the three months ended March 31st, 2007 is as
follows:
| March 31st, 2007 | March 31st, 2006 | |
| $’000 | $’000 | |
| Revenue | 7,163 | 6,082 |
| Gross Margin | 1,232 | 1,115 |
| Net (Loss)/Earnings | (39) | 66 |
| No. of Common Shares-average | 33,224,757 | 27,058,244 |
| Earnings/(Loss) per Share in Dollars-diluted | (0.00) | 0.00 |
First quarter revenue was 21% higher than the average quarterly revenue
in 2006 with growth reported across all the high power business groups
and 18% higher than the corresponding quarter of last year. The gross
margin was 18% higher than the average quarterly gross margin in 2006
and 10% higher than the corresponding quarter of last year. The fall in
gross profit margin in percentage terms, from 17.7% last year and 18.3%
in the corresponding quarter of last year to 17.2% in the first quarter
of 2007, was caused by higher costs, particularly for electricity.
Overhead expenses of $1.3 million were 13% higher than the quarterly
average for last year and 17% higher than the corresponding quarter of
last year. The rise reflected the recruitment and training of new sales
engineers in advance of revenue growth.
Orders taken during the
first quarter totalled $15.4 million, more than twice the level of
billings, thus underpinning further growth during 2007. At the end of
March, the order book stood at $25.0 million of which $21.4 million is
scheduled for delivery in 2007, an increase of 140% on last year.
Dr Paul Taylor, President and Chief Executive Officer commented that “It
is pleasing to be able to report that our order book has grown to record
levels and as a consequence we have experienced strong growth and are
now moving into a period of more robust growth. This is the first such
period since Dynex took over the Lincoln business in 2000 and the first
period where we have enjoyed such a clear view of the likely revenue
over the next few quarters.”
Bob Lockwood, Chief Financial
Officer, stated that “we were delighted to exceed our planned revenue in
the quarter. Gross margins have fallen slightly, mainly as a result of
high-energy costs. These costs should fall later in the year and we
expect gross margins to improve. Overhead expenses rose in the quarter
as we strengthened our sales team and positioned ourselves for growth in
2007. Revenue is expected to remain at the same level in the second
quarter before growing strongly in the second half of the year. The
small loss we are reporting was expected and a similar small loss is
expected in the second quarter. Nevertheless, we remain confident of
reporting a profit for the full year.”
Dynex also announced
today that its wholly owned subsidiary, Dynex Semiconductor Limited, has
entered into an agreement pursuant to which the subsidiary has
borrowed ₤150,000 and may borrow a further ₤350,000, in the aggregate,
from David Banks and Daniel Owen, each of whom is a director of Dynex.
The loans are intended to smooth expected cashflow over the next few
months. The loans are unsecured and repayable on or before October 31,
2007. The Company expects to repay the new loan from internally
generated cash flow prior to its due date. The loan accrues interest at
the rate of two percent per annum above the Base Rate of Interest
charged by the Royal Bank of Scotland compounded monthly and payable on
the last business day of each month during the term of the loan. Dynex
has guaranteed the obligation of its subsidiary pursuant to this loan.
The loan was approved unanimously by the Dynex Board of Directors,
including the independent members of the board but excluding Messrs.
Banks and Owen. In the event the loan is not repaid on or before October
31, 2007, the full amount of the loan may, at the option of the lenders,
be converted into common shares of Dynex Semiconductor Limited based on
the market value of such common shares on October 31, 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.
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
| Copyright © 2008 Dynex Semiconductor Copyright © 1995-2008 I-Next Ltd |
We welcome your comments about this service, please send them to: power_solutions@dynexsemi.com |