Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Year End Results for 2007
Continuing Growth in Demand Reflected in Strong Profits and Growing
Order Book
Lincoln, England, April 23rd, 2008 – Dynex Power Inc., a leading,
high power semiconductor company, today announced results for the year
ended December 31st, 2007.
Summary financial information for the
twelve months ended December 31st, 2007 is as follows:
| Dollars (000's) | Dec. 31, 2007 $'000 | Dec. 31, 2006 $'000 |
| Revenue | 30,155 | 23,713 |
| Gross Margin | 6,864 | 4,192 |
| Net Earnings (Loss) | 2,172 | (273) |
| Common shares outstanding1 - diluted | 33,860,516 | 31,257,836 |
| Earnings per share - diluted | $0.06 | ($0.01) |
¹ Weighted average for the period
Revenue growth of
over 27% in 2007 reflected the strong demand in the market place for
Dynex products. Continuing tight control of costs and the increase in
volume resulted in the gross margin rising from 17.7% to 22.8%, the
fourth consecutive year of improvement and its highest level for 6
years. The gross margin in 2007 of $6.9 million represented an increase
of 64% over 2006. With expenses only rising by 4% to $4.9 million, the
Company recorded net earnings of $2.2 million, the highest figure since
2000.
The growth in the order book was even higher than the
growth in revenue. Orders taken of $44.3 million were 49% higher than
the previous year and gave a book to bill ratio of 1.4. Such a level of
order in-take, combined with a year end order book of $24.4 million
gives management high confidence that further growth in both revenue and
net earnings can be achieved in 2008.
Dr. Paul Taylor, President
and Chief Executive Officer commented, “this was an excellent result for
the Company. The strong growth in revenue, the excellent improvement in
gross margin and the continued control of expenses are all causes for
celebration. We have now established a track record of improvement over
several years and we expect to extend that record in 2008."
Bob
Lockwood, Chief Financial Officer commented, “the improvement in our
gross margins from a low of 3.6% in 2003 to 22.8% last year and the fall
in expenses over the same period from 34.3% to 16.4% of sales revenue
reflect the hard work that all employees have contributed to turning the
business around. The growth in order in-take and the strength of our
order book give us great confidence that we shall continue to see
further improvements in performance. The next big challenge we face is
funding the capital expenditure required to expand our capacity and
improve our efficiency in order to meet the growing demand in the
marketplace for Dynex products.”
David Banks, Chairman,
concluded, “2007 has been a first class year thanks to our excellent
management who made this turn-around happen, as well as to our loyal and
committed employees, our valued customers and our reliable suppliers.
And, 2008 appears to be another strong year. We must thank our
shareholders for their patience during the period that the Company’s
prospects have been turned around. Looking to the future, the Company’s
solid performance during the early months of this year as well as the
Board’s expectations for the rest of the year demonstrates that the
Company needs significant capital investment to realise its full
potential. The Board believes that the best way to achieve this is to
have ownership control in the hands of a larger company with greater
financial resources. The recent announcement of our non-binding letter
of intent with the Zhuzhou CSR Times Electric Company of Hunan Province,
People’s Republic of China offers such a platform and provides an
exciting prospect for the Company and its employees.”
2007
Year End Results (PDF)
About the Company
Dynex is one of the world’s leading suppliers of specialist, high power
semiconductor products. Dynex Semiconductor Ltd is its main 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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