Dynex Power Announces Year End Results for 2006
Dynex Power Inc., a leading, high power semiconductor company, today announced results for the year ended December 31st, 2006.
The Company’s 2006 performance was significantly better than 2005, making this the third consecutive year of improvement. A 4.2% growth in revenue was recorded despite a 9% fall in the average value of the Dollar against Sterling between the two years. In Sterling terms, in which all revenues are first recorded, revenue growth exceeded 10%.
The 2006 gross margin of over $4.1 million represented an increase of 43% over 2005, continuing an improving trend established in 2004. The Net Loss of $273,000 was 85% lower than in 2005, again continuing a three year trend.
Dr. Paul Taylor, President and Chief Executive Officer commented, “this was a far better result than the bottom line indicates. 2006 was better than 2005 with attractive growth in revenue, particularly when measured in Sterling terms, an increasingly robust order book and a dramatic improvement in our gross margin and in the reduction in our net loss.”
Bob Lockwood, Chief Financial Officer commented, “there were several pleasing aspects of our performance in 2006 that reflected our continuing recovery and return to profitability. For the first time in three years, we saw real growth in sales. The improvement in our gross margins continues from a low of 3.6% in 2003 to 17.7% last year, despite large increases in energy costs. And for the third consecutive year we have reduced our expenses, so that they are now only 58% of what they were in 2003.”
Dr. Taylor added, “2007 has started well. We expect the size of our market to increase by 10% in the coming year, and we expect Dynex’s revenue growth to be even greater. We have experienced a robust improvement in our order book - the best in many years - giving us confidence that we will achieve another healthy increase in revenue during 2007. A further improvement in gross margin is forecast and with continuing tight control of expenses, we expect to return to profitability in 2007.”
David Banks, Chairman concluded, “the recovery of Dynex continues apace. Much was achieved during 2006 and our thanks are due to our excellent management, our loyal and committed employees, our valued customers and our reliable suppliers. We also thank our shareholders, for their patience during the period that the Company’s prospects have been turned around and for their continuing support of the Company. We are encouraged by sustaining the improvement in our financial performance and are looking forward to a successful and profitable 2007.”