Dynex Power Announces First Quarter Results for 2008
Lincoln, England, May 28th, 2008 – Dynex Power Inc., a leading, independent power semiconductor company, today announced results for the first quarter of 2008.
First quarter revenue was 7% higher than the average quarterly revenue in 2007. Revenue across the high power business groups was flat with modest growth in the modules group offsetting small declines in the bipolar discrete and power electronic assemblies groups. The integrated circuits group reported extremely strong growth. Revenue was 13% higher than the corresponding quarter of last year.
The gross margin was 48% higher than the average quarterly gross margin in 2007 and more than twice the figure for the corresponding quarter of last year. The rise in gross margin in percentage terms, from 17.2% in the corresponding quarter of last year and 22.8% on average for 2007 to 31.5% in the first quarter of 2008, was a result of the increase in volume and a particularly good product mix in the quarter. Overhead expenses of $1.5 million were 22% higher than the quarterly average for last year and 14% higher than the corresponding quarter of last year. The increase in overhead cost resulted from preparation for increased activity in future periods.
Orders taken during the first quarter totalled $10.3 million, 27% higher than the level of billings, thus underpinning further growth during 2008. At the end of March, the order book stood at $28.5 million of which $23.0 million is scheduled for delivery in 2008. Since the end of the quarter, the Company has announced new orders for $7 million of bipolar discrete modules for delivery during 2008 and 2009.
Dr Paul Taylor, President and Chief Executive Officer commented that “The excellent results for the first quarter of 2008 continues the trend we have been developing over the past few years. Just as importantly, our order in-take continues to outpace the revenue growth, giving us confidence that 2008 will be better than 2007.”
Bob Lockwood, Chief Financial Officer, stated that “we were delighted with our revenue figure in the first quarter and can now look forward to good revenue figures throughout the remaining quarters of the year. The gross margin percentage was particularly noteworthy, but it reflected an exceptionally good product mix. Whilst it looks as though the second quarter product mix may be similar, it is likely that the gross margin percentage will fall in the second half of the year. Overhead expenses rose in the quarter as we positioned ourselves for further growth in 2008. Nevertheless, we remain confident of reporting increased revenue and profit for the full year compared to 2007.”
David Banks, Chairman, commented that “following on from the Letter of Intent announced on March 31st 2008, the due diligence being conducted by Zhuzhou CSR Times Electric Co., Ltd. of Hunan Province in the People’s Republic of China continues on-track. While there can be no assurance, we expect that CSR Times Electric will shortly formally reaffirm the price and announce the other terms relevant at this time for the completion of the transaction.”