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Listing: TSX Venture Exchange

Symbol: DNX



Dynex Power Announces First Quarter Results for 2009

Net Earnings Maintained Despite a Full Tax Charge



Lincoln, England, May 28th, 2009 – Dynex Power Inc., a leading specialist high power semiconductor company, today announced results for the first quarter of 2009.


Summary financial information for the three months ended March 31st, 2009 is as follows:

Dollars (000's)March 31, 2009 March 31, 2008
Revenue 11,003 8,084
Gross Margin 3,280 2,549
Net Earnings 1,165 1,171
Common shares outstanding¹ - diluted 40,297,238 41,678,582
Earnings per share - diluted $0.03 $0.03


¹ Weighted average for the period

First quarter revenue of $11.0 million was 36% higher than the corresponding quarter of 2008 and 19% higher than the average quarterly revenue in 2008. There was a particularly strong performance from the bipolar discrete business group, which recorded its highest quarterly revenue ever. The power module business group reported modest growth against the corresponding quarter of last year, with small reductions in turnover from the power electronic assemblies and integrated circuit business groups.

The gross margin of 29.8% was slightly lower than the 31.5% reported in the corresponding quarter of 2008 but was still above the average gross margin in 2008 of 28.2%.

Expenses of $1.6 million were 7% higher than in the corresponding quarter of last year but 3% lower than the average expenses during 2008.

The Company incurred a $480,000 tax charge in the quarter. No tax charge had been incurred in 2008. Despite having to provide for tax, net earnings were only 1% lower than in the corresponding quarter of last year and were 2% higher than average quarterly earnings in 2008.

The growth in the order book continued during the quarter. Orders taken in the quarter of $12.7 million were 24% higher than the corresponding quarter of last year and gave a book to bill ratio of 1.1 to 1. Management has seen little sign so far of the global recession affecting other businesses and a record order book gives confidence that revenue will remain strong throughout the rest of 2009. However, a downturn in business may develop in the coming months and management expects gross margins to reduce as a result of competitive pressures and a less favourable product mix.

Dr. Paul Taylor, President and Chief Executive Officer commented, “at a time when so many other businesses are encountering worsening conditions, we are delighted to be able to report that Dynex is continuing to grow revenues and has a record order book. But we must not be complacent. Conditions world-wide are difficult and we may feel the affects on our business at some stage in the future. However, the expansion of our bipolar fabrication facilities will soon be complete and with the help of CSR Times Electric we are planning an expansion of our power module fabrication facilities. We are therefore well positioned to maintain our growth for as long as our markets remain strong.”

Bob Lockwood, Chief Financial Officer commented, “we are delighted to have been able to produce another outstanding set of results, particularly given the current economic climate. To be able to maintain the level of earnings after providing in full for tax is a tremendous achievement. But we will face a number of challenges in the coming months. A less favourable product mix means that net earnings are expected to fall in the next few quarters. We may yet feel the current recession that is affecting most of the world’s major economies a little more.”

Mr Lu, Chairman of Dynex and President and Executive Director of CSR Times Electric, concluded, “CSR Times Electric is delighted to see Dynex continuing to perform strongly. The management of Dynex has delivered another excellent set of results and we look forward to working closely with them on the expansion of their power module facility. CSR Times Electric will continue to give strong support to the development of Dynex during these challenging economic times.”

2009 Q1 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 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 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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