Dynex Power Announces Second Quarter Results for 2007
Dynex Power Inc., a leading, independent power semiconductor company, today announced results for the second quarter of 2007.
The Company’s revenue in the second quarter was 26% ahead of that reported in the corresponding quarter of last year with growth reported in all four product groups. Revenue for the year to date is 22% ahead of the same period last year, once again with growth in all four product groups. A favourable mix of sales, together with continuing careful control of costs and efficiency improvements, resulted in a gross margin of 21.9% in the quarter compared with 15.3% in the same quarter last year. As a result, the business was able to report a profit of $189,000 in the quarter and $151,000 for the year to date. Last year the Company recorded losses both for the quarter and the year to date.
Further revenue growth is expected in the second half of the year, particularly in the Integrated Circuits, Power Electronic Assemblies and Power Modules groups, with the Bipolar Discrete group remaining steady. Management expects a profit in the third and fourth quarters, ahead of the level reported in this quarter and ahead of the expectations issued at the time of the AGM.
Dr Paul Taylor, President and Chief Executive Officer commented that “it is pleasing to be able to report a return to profitability for the quarter and the year to date. These results confirm that our recovery is well established. Given the strength of our order book, we can see increased revenues and a further improvement in profitability taking place in the second half of the year. We are now giving more attention to raising the finance to reduce debt and fund the capital expenditure programme needed to increase our capacity and improve our efficiency.”
Bob Lockwood, Chief Financial Officer, stated that “the return to profitability one quarter sooner than expected was welcome. Even more welcome is the increase in the order book, which at the end of June stood at $25.2 million, its highest level in many years. The amount that customers want delivered from our order book during the rest of this financial year is sufficient to justify our forecast of increased revenues in the second half of 2007.”
In its press release of the 15th June, 2007 the Company announced that it had entered into discussions with an unnamed non-financial party on the desirability of that industry participant acquiring a substantial but not majority interest in the Company by means of a private placement of treasury shares. Those discussions are progressing although no assurance can be given that the discussions will lead to a definitive agreement or the consummation of any transaction. Should it be consummated, the proceeds from such a placement of shares would be used to repay long term debt and to finance a capital expenditure programme.
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 Company’s management discussion and analysis for the quarter ended June 30th, 2007 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 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.