Icron Technologies Reports Record Revenue
for the Second Quarter
BURNABY, BC--(MARKET WIRE)--Jul 27, 2004 -- Icron Technologies
Corporation (Vancouver:IT.V - News), a leading provider of
high performance digital connectivity technologies, announced
today the results for its second quarter ending June 30, 2004.
Suresh Singh, President and CEO of Icron, stated, "We
continue to be pleased with our performance as we hit our
revenue targets, strengthened margins, and posted a small
operating profit. This has been achieved while we continue
to invest aggressively in research and development to deliver
new products to the market and drive future growth."
Icron Technologies Corporation's revenue for the second
quarter ended June 30, 2004 increased 27.2% to a record $804,570
compared to the $623,420 reported in the second quarter of
2003, and 21.9% from the $660,209 posted in the preceding
quarter. Revenue for the six months period ending June 30,
2004 was $1,464,779, a 29% increase over the $1,133,573 reported
in the previous year.
The Company continued to experience growth in a majority
of its markets and product lines during the quarter. Revenue
from the sales of the Company's Ranger products increased
20.0% to $518,723; sales of Icron's fiber based products increased
by 53.6% to $57,438. The recently introduced Rover product
line generated $87,524 in revenue during the second quarter
of 2004, a 70.7% increase over the preceding quarter. The
Company launched new products into the DVI market late in
the second quarter, which contributed $35,277 in top line.
Icron's gross margin percentage was 43.9% of revenue for
the three months ended June 30, 2004, compared to 42.1% of
revenue for the three months ended June 30, 2003. On a year
to date basis gross margin is 43.2% up from 42.2% in 2003.
The increase in margins is attributable to continued focus
on material management procedures, supplier management and
economies of scale.
Excluding one-time restructuring charges the company earned
a profit of $1,499 or $0.00 per share as compared to a loss
of $88,499 or $0.01 per share in the second quarter of the
prior year. Operating expenses for the quarter were $352,364
in the second quarter of 2004 a decrease of 0.6% from the
$354,695 reported in the prior year. The reduction in expenses
was attributable to foreign exchange fluctuations and government
assistance received from IRAP (Industrial Research Assistance
Program). The Company has received approximately $68,000 in
funding as part of the IRAP agreement, leaving an additional
$32,000 to be claimed over the next two quarters as the Company
completes its USB 2.0 product development. The Company is
pleased with the strong support from the IRAP program and
will continue to pursue similar opportunities with this organization.
The Company incurred a one-time restructuring charge of
$88,008 relating to management changes in Sales and Marketing.
Including the one-time restructuring charge the company incurred
a loss of $86,509 compared to a loss of $88,449 in the same
period in 2003.
Cash provided by operating activities amounted to $19,247
for the second quarter of 2004, compared to cash consumed
by operating activities of $50,002 in the same period of 2003.
As of June 30, 2004 our working capital totaled $1,398,952,
compared with $680,462 in the preceding quarter and the $938,107
reported June of 2003.
Second Quarter Highlights
- The Company increased revenues by 27.2% over the prior
year.
- A small operating profit was realized, the first in eight
quarters.
- The Company raised $950K through a private placement
in May of 2004 further strengthening its balance sheet.
- Icron generated a second consecutive quarter of positive
cash flow
from operations.
- Continued progress was made in extended range USB 2.0
development
which is scheduled to be available to the market in early
September.
- A new Vice President of Sales and Marketing was hired
to re-focus our
sales team by providing new direction and initiatives.
- Icron showcased its DVI and USB products at Infocomm in
Atlanta.
About Icron
Icron Technologies Corporation is a leading provider of
high-performance digital connectivity technologies for the
computer marketplace. Icron's patented ExtremeUSB® technology
is compliant with USB Implementers Forum requirements and
touches several large worldwide markets from industrial automation
to medical devices, aerospace and computer networking. The
company provides branded and private-label packaged products,
Original Equipment Manufacturer (OEM) modules, developer kits,
and engineering and development services. Icron recently launched
an innovative line of products that deliver solutions to the
growing market for Digital Visual Interface (DVI) connectivity.
Icron is a publicly traded corporation and trades under
the symbol "IT" on the TSX Venture Exchange. For
information on the company and its products, please visit
www.icron.com and for detailed financial information visit
www.sedar.com.
The Toronto Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
FORWARD-LOOKING STATEMENTS: Except for statements of historical
fact, all statements in this news release -- including, without
limitation, statements regarding financial estimates and future
plans and objectives of Icron -- are forward-looking statements
that involve various risks and uncertainties. There can be
no assurance that such statements will prove to be accurate;
actual results and future events could differ materially from
those anticipated in such statements.
2004 Icron Technologies Corporation. ExtremeUSB®, USB
Ranger™ are trademarks of Icron Technologies Corporation.
Distributed by Filing Services Canada and retransmitted by
Market Wire
Contact Information
Icron Technologies Corporation |
|
Suresh Singh, President and CEO
suresh.singh@icron.com
|
Phone: 604-638-3929
Fax: 604-638-3930 |
|
