Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Third Quarter Results for 2007
Strong Improvement in Profitability
Lincoln, England, November 19th, 2007 – Dynex Power Inc., a
leading independent power semiconductor company, today announced results
for the third quarter of 2007.
Summary financial information
in Canadian dollars for the three and nine months ended September 30th,
2007 is as follows:
| Sept 30, 2007 | Sept 30, 2006 | YTD 2007 | YTD 2006 | |
| $’000 | $’000 | $'000 | $'000 | |
| Revenue | 8,706 | 5,707 | 22,499 | 17,042 |
| Gross Margin | 2,220 | 1,039 | 4,903 | 2,957 |
| Net Earnings / (Loss) | 915 | (133) | 1,066 | (696) |
| No. of Common Shares-average | 33,343,908 | 32,196,183 | 33,303,006 | 30,650,637 |
| Earnings/(Loss) per Share in Dollars-diluted | 0.03 | (0.00) | 0.03 | (0.02) |
The Company’s revenue in the third quarter was 53% ahead of that
reported in the corresponding quarter of last year with strong growth
reported in all four product groups. Revenue for the year to date is 32%
ahead of the same period last year. Approximately one quarter of that
increase is the result of the weaker dollar for the year to date, with
the rest of the increase coming from volume growth across all four
product groups. A favourable mix of sales resulted in a gross margin of
25.5% in the quarter compared with 18.2% in the same quarter last year.
As a result, the business was able to report a profit of $915,000 in the
quarter and $1.1 million for the year to date. Last year the Company
recorded losses both for the quarter and the year to date.
Fourth
quarter revenue is expected to be similar to that reported in the third
quarter with some growth in Power Modules and Integrated Circuits offset
by slightly lower volumes in the Bipolar group. Management expects
another strong profit in the fourth quarter.
Dr Paul Taylor,
President and Chief Executive Officer commented that “the increase in
revenue and profitability that we have seen in the third quarter fulfils
the expectations that we expressed at the time we issued the second
quarter results. Given the strength of our order book, we can see
another good result arising in the fourth quarter. Our primary focus now
is on funding the capital expenditure programme needed to increase our
capacity and improve our efficiency and reducing the level of debt in
our capital structure.”
Bob Lockwood, Chief Financial
Officer, stated that “the results for the quarter were excellent news
for shareholders and employees alike after a long period of improving
but still unsatisfactory performance. Our order book, which stood at
$23.5 million at the end of September, gives us confidence of another
two quarters of good sales and profits to come. It is possible that
overall sales volume may decline slightly thereafter in the later part
of 2008 and that an adverse change in product mix might cause profits to
fall back from the level being seen at the moment, but management is
working hard to offset these possibilities.”
Forward
Looking Statements
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 September 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.
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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