Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Emphasized 2007 Progress at AGM
Outlook
Continues to Improve
Toronto, Ontario, Canada, June 15th, 2007 – Dynex Power Inc., a
leading, independent power semiconductor company, determined it
appropriate after its Annual General Meeting of shareholders to release
publicly the following statements.
Dr. Paul Taylor, President and
Chief Executive Officer, announced that the order book which currently
stood at $25.0 million was higher than at any point in the past 5 years.
In addition, the robust character of the order book provided the Company
a higher level of confidence in assessing its forward expectations than
it has enjoyed in the past.
Dr. Taylor, in his presentation to
shareholders, reiterated the improved performance in the Company’s
revenues, cost containment and gross profit margins. Dr. Taylor stated
that he believed these trends were continuing and he made reference to
the Company’s financial performance expectations below:
| (Cdn$ 000s) | Plan | |||||
| 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | 2007 | |
| Revenue | 23,713 | 7,163 | 6,738 | 7,766 | 9,168 | 30,835 |
| Gross Margin | 4,192 | 1,232 | 1,011 | 1,553 | 1,925 | 5,721 |
| GPM Percentage | 18% | 17% | 15% | 20% | 21% | 19% |
| Net Profit/(Loss) | (273) | (39) | (150) | 120 | 600 | 531 |
In making the release about its expectations, the Company cautioned
shareholders and potential investors about relying on the Company’s
expectations in that the Company’s expectations contain forward looking
statements and assumptions which are subject to the uncertainties and
vagaries of the markets and the future, which could cause actual results
to differ materially from expectations, and which are each difficult and
subjective to forecast. As a consequence, shareholders and potential
investors must make their own independent judgments about the accuracy
and reliability of the Company’s expectations.
Dr. Taylor
also stated that over the past six months, the Company has been
approached by a number of parties who expressed interest in some form of
strategic combination or joint venture. However, the Company chose to
hold exclusive discussions with one non-financial party on the
desirability of that industry participant acquiring a substantial but
not a majority interest in the Company by means of a private placement
of treasury shares, the proceeds of which would be used for debt
reduction, and capital expenditure that the Company believes could be
transformational.
Dr. Taylor emphasized that negotiations
continue and there is absolutely no assurance that the discussions
referred to will lead to the execution of a definitive agreement and
consummation of a transaction. The Company cautions shareholders and
potential investors about relying on the uncertainty of the Company and
the prospective investor agreeing terms and conditions regarding the
private placement.
In making the release about its expectations,
the Company cautioned shareholders and potential investors about relying
on the Company’s expectations in that the Company’s expectations contain
forward looking statements and assumptions which are subject to the
risks and uncertainties of the markets and the future, which could cause
actual results to differ materially from expectations, and which are
each difficult and subjective to forecast. Certain of those risks and
uncertainties are discussed in the Company’s management discussion and
analysis for the first quarter ended March 31, 2007 and include, among
other things, risks and uncertainties relating to: the level of
worldwide demand for power semiconductors and power semiconductor
assemblies; the level of investment in power electronic equipment,
electrification of transport systems, alternative power generation and
high quality power transmission and distribution; the worldwide demand
for and supply of silicon; and fluctuations in exchange rates between
Sterling, US dollars and Euros. As a consequence of these and other
risks and uncertainties, shareholders and potential investors must make
their own independent judgments about the accuracy and reliability of
the Company’s expectations.
About the Company
Dynex is one of the world’s leading suppliers of specialist, high power
semiconductor products. Dynex Semiconductor Ltd is its 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
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