Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Year End Results for 2008
Improved
Earnings and a Growing Order Book Justify Expanding Production Facilities
Lincoln, England, April 17th, 2009 – Dynex Power Inc., a leading,
high power semiconductor company, today announced results for the year
ended December 31st, 2008.
Summary financial information for the
twelve months ended December 31st, 2008 is as follows:
| Dollars (000's) | Dec. 31, 2008 | Dec. 31, 2007 |
| Revenue | 37,017 | 30,155 |
| Gross Margin | 10,457 | 6,864 |
| Net Earnings | 4,562 | 2,172 |
| Common shares outstanding1 - diluted | 37,666,916 | 33,680,516 |
| Earnings per share - diluted | $0.12 | $0.06 |
¹ Weighted average for the period
Revenue growth of 23%
in 2008 reflected the continued strong demand in the market place for
Dynex products. The increase in volume together with a particularly
favourable product mix in the first half of the year resulted in the
gross margin rising from 22.7% to 28.3%. The gross margin in 2008 of
$10.5 million represented an increase of 52% over 2007. A 34% increase
in expenses reflected significant one-off costs associated with the
acquisition of a majority stake in the Company by Zhuzhou CSR Times
Electric Co., Ltd of Hunan Province in the People’s Republic of China
and costs associated with preparing the Company for further growth in
2009.
The growth in the order book continued during 2008. Orders
taken of $49.0 million were 15% higher than the previous year and gave a
book to bill ratio of 1.3. Such a level of order in-take, combined with
a record year-end order book of $37.7 million, gives management
confidence that further growth in revenue can be achieved in 2008.
However, the exceptionally favourable product mix seen in the early part
of 2008 is not expected to be repeated and net earnings are expected to
fall in 2009. In addition, due to the exhaustion of brought forward tax
losses in the UK, the Company expects to incur a tax charge in 2009.
Dr.
Paul Taylor, President and Chief Executive Officer commented, “this has
been an historic year for Dynex. The acquisition of 75% of our common
shares by CSR Times Electric brings us the support of a strong parent
company and the opportunity to play an even more active role in what is
probably the strongest growing economy in the world. Our co-operation
with CSR Times Electric is still at an early stage, but already we can
see that there are many new opportunities from which we can benefit. We
have pushed ahead in 2008 with the installation of a 6 inch bipolar
fabrication facility, we have begun to build a new, special test
facility for high power thyristors and we expect to start soon on an
expansion of our IGBT facility to service the massive and rapid
expansion of the China rail networks. At the same time, we have been
able to report an excellent set of results, with strong growth in
revenue, another excellent improvement in gross and net earnings and a
record order book."
Bob Lockwood, Chief Financial Officer
commented, “we are delighted to be able to produce an outstanding set of
results in the current climate. Strong growth in revenue and another
significant improvement in gross margin has enabled us to more than
double our net earnings compared to last year. The strength of our order
book and the expansion plans that Paul Taylor has referred to and our
relationship with CSR Times Electric all point to an exciting future.
But 2009 will also be a difficult year in many ways. A less favourable
product mix and the need to provide for tax in future means that net
earnings are expected to fall next year. We also need to be conscious of
the current recession affecting most of the world’s major economies. We
have not seen too much affect of the current economic troubles on our
business to date, but we cannot ignore the possibility that we will be
affected at some point in the future.”
Mr Lu, Chairman and
President of CSR Times Electric, concluded, “CSR Times Electric is
delighted to have completed its first overseas acquisition and we are
excited by the opportunities that arise from CSR Times Electric and
Dynex working together in the future. The management of Dynex has
delivered an excellent set of results for 2008 and we look forward to
working with them to produce even better results for all Dynex
shareholders in the future.”
2008
Year End Results (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 also 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 on the
World Wide Web at 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.
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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