Financial Key Data

Objective

The Group’s objective over the medium term is to achieve strong revenue growth whilst maintaining a gross profit percentage in the range of 20-25% so as to be able to invest strongly in research and development, cover other administrative expenses, finance charges and tax and provide shareholders with a good return on their investment in the business.

Overview

Revenue in the second quarter of 2017 was at a similar level to that reported in the first quarter of 2017. A reduction in the gross margin to 8.6%, reflecting a less favourable product mix, and an increase in research and development expenditure resulted in a net loss of $944,000 for the quarter. The Company’s booking to billing ratio for the quarter was 0.90. The level of bookings showed some improvement from the first quarter but suggests the market will remain tough until the new products are launched in the second half of this year.

Sales and Distribution

Revenue decreased from $46.5 million in 2015 to $40.5 million in 2016. Demand for bipolar products in key geographic markets for traction declined compared to 2015, Indian railways, as a key example of this trend has continued its transition to IGBT from bipolar technology in traction. The expected growth in IGBT module was not achieved in 2016, which in part was due to a lower number of customer programme qualifications than expected transitioning into significant sales revenue. Power assemblies revenues declined but new customer orders were secured that are expected to contribute revenue in 2017.

Selected quarterly and annual financial information

All figures have been prepared in accordance with IFRS. Quarterly figures have not been audited except for balance sheet figures for each of the fourth quarters. The figures for the financial years 2014, 2015 and 2016 have been audited. All amounts are stated in thousands of Canadian Dollars except for the gross profit percentage and the gross R&D percentage and for earnings per share figures which are stated in Canadian Dollars per share.

Factor 2017 Q2 2017 Q1 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2015 Q4 2015 Q3 2016 FY 2015 FY 2014 FY
Revenue 11,546 11,553 10,045 11,079 9,123 10,273 12,718 12,254 40,519 46,512 42,166
Gross Profit 998 2,732 (1,052) 2,071 (117) 1,188 4,369 1,081 2,090 4,683 (441)
Gross Profit % 8.6% 23.7% (10.5%) 18.7% (1.3%) 11.6% 34.4% 8.8% 5.2% 10.1% (1.0%)
Gross R&D % 25.6% 17.4% 33.2% 26.9% 29.9% 24.8% 26.0% 22.1% 28.6% 21.3% 15.2%
Profit Before Tax (1,135) 545 (3,678) 352 (2,099) (526) 3,564 603 (5,951) 270 (6,518)
Net Profit (994) 406 (2,965) 236 (1,729) (461) 2,884 483 (4,919) 166 (5,548)