Dynex Power Announces Third Quarter Results for 2007
Lincoln, England, November 19th, 2007 – Dynex Power Inc., a leading independent power semiconductor company, today announced results for the third quarter of 2007.
The Company’s revenue in the third quarter was 53% ahead of that reported in the corresponding quarter of last year with strong growth reported in all four product groups. Revenue for the year to date is 32% ahead of the same period last year. Approximately one quarter of that increase is the result of the weaker dollar for the year to date, with the rest of the increase coming from volume growth across all four product groups. A favourable mix of sales resulted in a gross margin of 25.5% in the quarter compared with 18.2% in the same quarter last year. As a result, the business was able to report a profit of $915,000 in the quarter and $1.1 million for the year to date. Last year the Company recorded losses both for the quarter and the year to date.
Fourth quarter revenue is expected to be similar to that reported in the third quarter with some growth in Power Modules and Integrated Circuits offset by slightly lower volumes in the Bipolar group. Management expects another strong profit in the fourth quarter.
Dr Paul Taylor, President and Chief Executive Officer commented that “the increase in revenue and profitability that we have seen in the third quarter fulfils the expectations that we expressed at the time we issued the second quarter results. Given the strength of our order book, we can see another good result arising in the fourth quarter. Our primary focus now is on funding the capital expenditure programme needed to increase our capacity and improve our efficiency and reducing the level of debt in our capital structure.”
Bob Lockwood, Chief Financial Officer, stated that “the results for the quarter were excellent news for shareholders and employees alike after a long period of improving but still unsatisfactory performance. Our order book, which stood at $23.5 million at the end of September, gives us confidence of another two quarters of good sales and profits to come. It is possible that overall sales volume may decline slightly thereafter in the later part of 2008 and that an adverse change in product mix might cause profits to fall back from the level being seen at the moment, but management is working hard to offset these possibilities.”
Forward Looking Statements
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 September 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.