Listing: TSX Venture Exchange
Symbol: DNX
Lincoln, England, November 20th, 2008 – Dynex Power Inc., a
leading specialist high power semiconductor company, today announced
results for the third quarter of 2008.
Summary financial
information in Canadian dollars for the three and nine months ended
September 30th, 2008 is as follows:
| Sept 30, 2008 | Sept 30, 2007 | YTD 2008 | YTD 2007 | |
| $’000 | $’000 | $’000 | $’000 | |
| Revenue | 9,349 | 8,706 | 27,206 | 22,499 |
| Gross Margin | 2,146 | 2,220 | 8,628 | 4,903 |
| Net Earnings | 395 | 915 | 3,857 | 1,066 |
| No. of Common Shares-average | 39,748,782 | 33,343,908 | 36,147,746 | 33,303,066 |
| Earnings per Share in Dollars-diluted | 0.01 | 0.03 | 0.10 | 0.03 |
The Company’s revenue in the third quarter was 7% ahead of that reported
in the corresponding quarter of last year with strong growth reported in
the Power Modules, Power Electronic Assemblies and Bipolar Discrete
Units product groups whilst revenue for Integrated Circuits declined
steeply from the high figure reported last year. Revenue for the year to
date is 21% ahead of the same period last year, with growth in all four
product groups. As expected, the less favourable mix of sales resulted
in a gross margin of 23.0% in the quarter compared with 25.5% in the
same quarter last year. The business reported earnings of $395,000 in
the quarter and $3.9 million for the year to date. Last year the Company
recorded earnings of $915,000 for the quarter and $1.1 million for the
year to date.
Dr Paul Taylor, President and Chief Executive
Officer commented that “As we expected, our gross margins and net
profits are lower in the third quarter than they were in the first two
quarters of the year. Our order book remains at a record level and the
outlook is for continuing growth in the power business units, but we
expect sales in Integrated Circuits to be lower until at least the
middle of 2009”. Commenting on the recent corporate transaction, Dr
Taylor added “The acquisition of 75% of the Company’s equity by Zhuzhou
CSR Times Electric Co., Ltd., which was completed at the end of October,
opens a new chapter in the Company’s history. We look forward to the
opportunities this will give us to strengthen our business, particularly
in power modules, and to co-operate with CSR Times Electric.”
Bob
Lockwood, Chief Financial Officer, stated that “The reduction in sales
of Integrated Circuits has led to a lower gross profit margin in the
third quarter and this is expected to continue until new Integrated
Circuit die stocks become available sometime in the middle of next year.
In addition, one-off costs related to the recently completed acquisition
of 75% of the Company’s equity by CSR Times Electric have increased our
overhead costs substantially in the quarter. Despite these changes, and
the steep increase in electricity costs which will impact on the fourth
quarter results, we remain on track and confident that revenue and
earnings for 2008 will be significantly better than those reported in
2007.”
Mr Lu Penghu, the President of CSR Times Electric
and the newly appointed Chairman of Dynex said “It is clear that Dynex
has been growing its position in the world market and strengthening its
financial performance over recent years. We are delighted to have
completed our acquisition of 75% of Dynex’s common shares at such a
point in its history and I look forward to working with Dynex’s existing
directors and employees to ensure that the Company continues to grow and
fulfil its potential.”
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, 2008 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
Canadian Dollars, 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.
2008
Q3 Figures (PDF)
About the Company
Dynex
designs and manufactures high power bipolar semiconductors, high power
insulated gate bipolar transistor (IGBT) modules, high power electronic
assemblies and radiation hard silicon-on-sapphire integrated circuits
(SOS IC’s). The company’s power products are used worldwide in power
electronic applications including electric power transmission and
distribution, renewable and distributed energy, marine and rail traction
motor drives, aerospace, electric vehicles, industrial automation and
controls and power supplies. Our IC products are used in demanding
applications in the aerospace industry. Dynex Semiconductor Ltd is its
only operating business and is based in Lincoln, England in a facility
housing the fully integrated silicon fabrication, assembly and test,
sales, design and development operations. Dynex is majority owned by
Zhuzhou CSR Times Electric Co., Ltd.
Zhuzhou CSR Times Electric
Co., Ltd. is based in Hunan Province in the People's Republic of China.
It is listed on the Hong Kong stock exchange. CSR Times Electric is the
leading train-borne electrical system provider and integrator for the
railway industry in China. It is engaged in developing, manufacturing
and selling train power converters, auxiliary power supply equipment and
control systems for trains for urban rail systems. In addition, CSR
Times Electric designs, manufactures and sells electrical components
including power semiconductor devices.
Press announcements
and other information about Dynex are available www.dynexsemi.com.
Further
information on CSR Times Electric can be found at www.timeselectric.cn/en
All
monetary values expressed in this release are in Canadian dollars unless
stated otherwise.
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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