Dynex Begins Construction of New R&D Centre and Office Building
Lincoln, England, October 5th, 2011 – Dynex Power Inc., a leading specialist high power semiconductor company, today announced that its subsidiary Dynex Semiconductor Ltd. has signed a letter of intent with John Martin-Hoyes, a local building company, for the construction of a new Research and Development “R&D” Centre and Office Building on its present site in Lincoln. Dynex announced in May and September 2010 that it would be significantly increasing its R&D activities under an arrangement that would be principally funded by its majority shareholder, CSR Times Electric Co., Ltd. The increase in R&D activity has led to the requirement for additional office space for the enlarged R&D team which will occupy the whole of the top floor of the new building. The ground floor will provide additional office space as well as a reception area and an exhibition area.
The Company also announced that, prior to signing the letter of intent, it had purchased the freehold of the existing site in Doddington Road in Lincoln.
Commenting on the development, Dynex’s President and Chief Executive Officer, Dr Paul Taylor said: “New product development is the key to market leadership. We have previously stated our belief in the importance of R&D to new product development, in fact to the future of our business. This project demonstrates our commitment to the expansion of our R&D. We have doubled the number of R&D based staff over the last twelve months and expect that number to have trebled by this time next year. Not surprisingly, we are running out of space. The new building will provide the additional space we need as well as a better environment in which our research and development can take place. We aim to ensure that this building project does not interfere with the normal operations of the business.”
“We have already said that we expect revenue to remain at least at the level seen in the second quarter of this year and for our gross profits to improve. Our view has not changed. We expect that despite a modest slowdown in Dynex’s IGBT sales to the rail sector in China, the Company continues to perform according to the guidance the Company provided at our AGM.”
Bob Lockwood, Chief Financial Officer, added “Purchasing the freehold of the site fulfilled several objectives for us. It gives us greater control of our own destiny and enhances the value of the Company. It also makes more sense to be building a new R&D Centre and Office Building on land we own rather than land owned by someone else. We were delighted that the existing landlord was willing to sell to us and pleased that we could purchase the site at a price that will reduce our operating costs in future.”
The new building is expected to be ready for occupation by the middle of next year.
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 Management’s Discussion and Analysis for the quarter ended June 30th, 2011 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.
For more information:
Dr. Paul Taylor
President and Chief Executive Officer
Finance Director and Chief Financial Officer
Dynex Power Inc.
Tel: UK +44 1522 500 500