Dynex Power Announces Update on Strategic Discussions
Dynex Power Inc., a leading, independent power semiconductor company, today announced that discussions had halted with the unnamed non-financial firm that had been referred to in the Company’s press releases of June 15th and August 17th of this year.
The discussions had been about the desirability of that firm acquiring a substantial but not majority interest in the Company by means of a private placement of treasury shares.
Dr. Paul Taylor, President and Chief Executive Officer commented, “With these discussions now halted, we can pursue other strategic options, which have been under consideration. The improving financial performance of the Company enables us to move forward with growing optimism.”
Dr. Taylor continued, “Let me use this announcement to provide a brief update of our current operating performance. We now believe that our third quarter net profits will be materially better than the expectations I announced at our Annual General Meeting and which we commented on in our press release of June 15th. Based on the strength of our order book, we also expect a strong fourth quarter. In addition to our improving operating results, the Company made early repayment of the £500,000 loan from Directors that we reported in our press release of May 30th, and we anticipate that as part of our financial planning we will further reduce the level of our indebtedness during this year. Lastly, we remain committed to reducing our financial risk as well as funding the capital expenditure programmes also discussed at our AGM and commented on in our last two quarterly financial reports.”
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 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.