Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces First Quarter Results for 2008
A
Strong Start with Robust Expectations for the Year
Lincoln, England, May 28th, 2008 – Dynex Power Inc., a leading,
independent power semiconductor company, today announced results for the
first quarter of 2008.
Summary financial information in Canadian dollars for the three months
ended March 31st, 2008 is as follows:
| March 31st, 2008 | March 31st, 2007 | |
| $’000 | $’000 | |
| Revenue | 8,084 | 7,163 |
| Gross Margin | 2,549 | 1,232 |
| Net (Loss)/Earnings | 1,171 | (39) |
| No. of Common Shares-average | 33,348,562 | 33,224,757 |
| Earnings/(Loss) per Share in Dollars-diluted | 0.03 | (0.00) |
First quarter revenue was 7% higher than the average quarterly revenue
in 2007. Revenue across the high power business groups was flat with
modest growth in the modules group offsetting small declines in the
bipolar discrete and power electronic assemblies groups. The integrated
circuits group reported extremely strong growth. Revenue was 13% higher
than the corresponding quarter of last year.
The gross margin was
48% higher than the average quarterly gross margin in 2007 and more than
twice the figure for the corresponding quarter of last year. The rise in
gross margin in percentage terms, from 17.2% in the corresponding
quarter of last year and 22.8% on average for 2007 to 31.5% in the first
quarter of 2008, was a result of the increase in volume and a
particularly good product mix in the quarter. Overhead expenses of $1.5
million were 22% higher than the quarterly average for last year and 14%
higher than the corresponding quarter of last year. The increase in
overhead cost resulted from preparation for increased activity in future
periods.
Orders taken during the first quarter totalled $10.3
million, 27% higher than the level of billings, thus underpinning
further growth during 2008. At the end of March, the order book stood at
$28.5 million of which $23.0 million is scheduled for delivery in 2008.
Since the end of the quarter, the Company has announced new orders for
$7 million of bipolar discrete modules for delivery during 2008 and 2009.
Dr
Paul Taylor, President and Chief Executive Officer commented that “The
excellent results for the first quarter of 2008 continues the trend we
have been developing over the past few years. Just as importantly, our
order in-take continues to outpace the revenue growth, giving us
confidence that 2008 will be better than 2007.”
Bob
Lockwood, Chief Financial Officer, stated that “we were delighted with
our revenue figure in the first quarter and can now look forward to good
revenue figures throughout the remaining quarters of the year. The gross
margin percentage was particularly noteworthy, but it reflected an
exceptionally good product mix. Whilst it looks as though the second
quarter product mix may be similar, it is likely that the gross margin
percentage will fall in the second half of the year. Overhead expenses
rose in the quarter as we positioned ourselves for further growth in
2008. Nevertheless, we remain confident of reporting increased revenue
and profit for the full year compared to 2007.”
David
Banks, Chairman, commented that “following on from the Letter of Intent
announced on March 31st 2008, the due diligence being conducted by
Zhuzhou CSR Times Electric Co., Ltd. of Hunan Province in the People’s
Republic of China continues on-track. While there can be no assurance,
we expect that CSR Times Electric will shortly formally reaffirm the
price and announce the other terms relevant at this time for the
completion of the transaction.”
2008
Q1 Figures (PDF)
About the Company
Dynex is one
of the world’s leading suppliers of specialist, high power semiconductor
products. Dynex Semiconductor Ltd is its only 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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