Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Second Quarter Results for 2007
Return to Profit Underlines Continuing Recovery
Lincoln, England, August 17th, 2007 – Dynex Power Inc., a
leading, independent power semiconductor company, today announced
results for the second quarter of 2007.
Summary financial
information in Canadian dollars for the three and six months ended June
30th, 2007 is as follows:
| June 30, 2007 $'000 | June 30, 2006 $'000 | YTD 2007 $'000 | YTD 2006 $'000 | |
| Revenue | 6,630 | 5,253 | 13,793 | 11,335 |
| Gross Margin | 1,451 | 803 | 2,683 | 1,917 |
| Net Earnings/(Loss) | 189 | (629) | 151 | (563) |
| No. of Common Shares-average | 33,339,043 | 30,107,131 | 33,282,216 | 29,454,560 |
| Earnings/(Loss) per Share in Dollars-diluted | 0.01 | (0.02) | 0.00 | (0.02) |
The Company’s revenue in the second quarter was 26% ahead of that
reported in the corresponding quarter of last year with growth reported
in all four product groups. Revenue for the year to date is 22% ahead of
the same period last year, once again with growth in all four product
groups. A favourable mix of sales, together with continuing careful
control of costs and efficiency improvements, resulted in a gross margin
of 21.9% in the quarter compared with 15.3% in the same quarter last
year. As a result, the business was able to report a profit of $189,000
in the quarter and $151,000 for the year to date. Last year the Company
recorded losses both for the quarter and the year to date.
Further revenue growth is expected in the second half of the year,
particularly in the Integrated Circuits, Power Electronic Assemblies and
Power Modules groups, with the Bipolar Discrete group remaining steady.
Management expects a profit in the third and fourth quarters, ahead of
the level reported in this quarter and ahead of the expectations issued
at the time of the AGM.
Dr Paul Taylor, President and Chief
Executive Officer commented that “it is pleasing to be able to report a
return to profitability for the quarter and the year to date. These
results confirm that our recovery is well established. Given the
strength of our order book, we can see increased revenues and a further
improvement in profitability taking place in the second half of the
year. We are now giving more attention to raising the finance to reduce
debt and fund the capital expenditure programme needed to increase our
capacity and improve our efficiency.”
Bob Lockwood, Chief
Financial Officer, stated that “the return to profitability one quarter
sooner than expected was welcome. Even more welcome is the increase in
the order book, which at the end of June stood at $25.2 million, its
highest level in many years. The amount that customers want delivered
from our order book during the rest of this financial year is sufficient
to justify our forecast of increased revenues in the second half of
2007.”
In its press release of the 15th June, 2007 the
Company announced that it had entered into discussions with an unnamed
non-financial party on the desirability of that industry participant
acquiring a substantial but not majority interest in the Company by
means of a private placement of treasury shares. Those discussions are
progressing although no assurance can be given that the discussions will
lead to a definitive agreement or the consummation of any transaction.
Should it be consummated, the proceeds from such a placement of shares
would be used to repay long term debt and to finance a capital
expenditure programme.
In commenting on its expectations, the
Company cautioned existing and potential shareholders 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 quarter ended June 30th, 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. Dynex disclaims any intention or obligation to update or
revise any forward looking statement whether as a result of new
information, future events or otherwise.
2007 Q2 Results (PDF)
About the Company
Dynex is one of the world’s leading, independent 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: investorrelations@dynexsemi.com
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