Dynex Power Announces Year End Results for 2007
Lincoln, England, April 23rd, 2008 – Dynex Power Inc., a leading, high power semiconductor company, today announced results for the year ended December 31st, 2007.
Revenue growth of over 27% in 2007 reflected the strong demand in the market place for Dynex products. Continuing tight control of costs and the increase in volume resulted in the gross margin rising from 17.7% to 22.8%, the fourth consecutive year of improvement and its highest level for 6 years. The gross margin in 2007 of $6.9 million represented an increase of 64% over 2006. With expenses only rising by 4% to $4.9 million, the Company recorded net earnings of $2.2 million, the highest figure since 2000.
The growth in the order book was even higher than the growth in revenue. Orders taken of $44.3 million were 49% higher than the previous year and gave a book to bill ratio of 1.4. Such a level of order in-take, combined with a year end order book of $24.4 million gives management high confidence that further growth in both revenue and net earnings can be achieved in 2008.
Dr. Paul Taylor, President and Chief Executive Officer commented, “this was an excellent result for the Company. The strong growth in revenue, the excellent improvement in gross margin and the continued control of expenses are all causes for celebration. We have now established a track record of improvement over several years and we expect to extend that record in 2008."
Bob Lockwood, Chief Financial Officer commented, “the improvement in our gross margins from a low of 3.6% in 2003 to 22.8% last year and the fall in expenses over the same period from 34.3% to 16.4% of sales revenue reflect the hard work that all employees have contributed to turning the business around. The growth in order in-take and the strength of our order book give us great confidence that we shall continue to see further improvements in performance. The next big challenge we face is funding the capital expenditure required to expand our capacity and improve our efficiency in order to meet the growing demand in the marketplace for Dynex products.”
David Banks, Chairman, concluded, “2007 has been a first class year thanks to our excellent management who made this turn-around happen, as well as to our loyal and committed employees, our valued customers and our reliable suppliers. And, 2008 appears to be another strong year. We must thank our shareholders for their patience during the period that the Company’s prospects have been turned around. Looking to the future, the Company’s solid performance during the early months of this year as well as the Board’s expectations for the rest of the year demonstrates that the Company needs significant capital investment to realise its full potential. The Board believes that the best way to achieve this is to have ownership control in the hands of a larger company with greater financial resources. The recent announcement of our non-binding letter of intent with the Zhuzhou CSR Times Electric Company of Hunan Province, People’s Republic of China offers such a platform and provides an exciting prospect for the Company and its employees.”