Dynex Power Announces First Quarter Results for 2006

25.05.06

Lincoln, England, May 25th, 2006 – Dynex Power Inc., a leading, independent power semiconductor company, today announced results for the first quarter of 2006.

Summary financial information in Canadian dollars for the three months ended March 31st, 2006 is as follows:
 

March 31st, 2006
$’000March 31st, 2005
$’000

Revenue6,0824,166

Gross Margin1,115(580)

Net Earnings/(Loss)66(1,606)

No. of Common Shares-average27,058,24426,917,354

Earnings/(Loss) per Share in Dollars-diluted0.00(0.06)

First quarter revenue was lower than in the fourth quarter of 2005. However, the results were in line with expectations and showed the level of recovery achieved by the business over the last twelve months. At this level of revenue the business earned an improved gross margin, and with tight control of overhead expenses, a small profit was recorded for the quarter.

The order book remains in line with expectations, with higher revenues forecast in the second half of the year.

Dr Paul Taylor, President and Chief Executive Officer commented that “In line with our plans, we generated over $6 million in revenue in the first quarter of 2006. Our high power Bipolar and IGBT businesses have responded well to the restructuring begun in 2004 and are showing steady growth. Prospects are strong for the Integrated Circuit business and for Assemblies, with increased revenue expected later this year.”

Bob Lockwood, Chief Financial Officer, stated that “we were delighted to meet our planned revenue in the quarter. Revenue is forecast to decline slightly in the second quarter and in the first part of the third quarter as we complete the transition to new materials for our Integrated Circuits business and as a result of the phasing of major Assemblies projects. Revenue is expected to pick up in the latter part of the third quarter and improve even more in the fourth quarter. While it was particularly pleasing to be able to report a net profit for the second quarter in succession, we expect to report a small loss in the second quarter before returning to profit in the latter part of the year. We continue to expect 2006 to be profitable overall.”

For more information:

Dr. Paul Taylor
President and Chief Executive Officer
or
Bob Lockwood
Chief Financial Officer
Dynex Power Inc.
Tel: UK +44 1522 500500
Email: paul_taylor@dynexsemi.com