Home / Media / Press Release

Icron Reports Second Quarter Results

(Not for distribution to United States newswire services or for dissemination in the United States.)

BURNABY, B.C., August 24, 2006 - Icron Technologies Corporation (TSX Venture: IT), the developers of ExtremeUSB, today released financial results for the second quarter ending June 30, 2006.

Highlights:

• Posted Q2 2006 revenues of $1,494,896, representing a 39.6% increase over Q2 2005;

• 2006 year-to-date revenues at record $2,899,069, representing a 47.5% increase over the same six-month period in 2005;

• Reduced Q2 2006 Operating loss to only $39,747 compared to a loss of $218,071 in the same period of 2005;

• The Company ended Q2 2006 with cash balances of $4,527,650 compared to $1,340,772 in the same period of the prior year.

“The market for the companies ExtremeUSB based solutions continues to grow,” commented Suresh Singh, President and CEO. “Our focus over the next 12 to 18 months is to aggressively cost reduce our technology to expand the total available market in both wired and wireless markets. While we have had a setback with our first wireless partner in the UWB space, we are actively working with others in this market and are confident of success in this area..”

Icron had previously expected that during the second quarter, products that included its ExtremeUSB technology were to be launched by a number of customers of its initial UWB partner, Freescale. Due to issues not related to Icron’s technology, our partner has suspended that program indefinitely.

The company continues to focus on establishing other partners in the wireless sector, and plans to have announcements in the coming months in both UWB and 802.11 markets. A recent report by market analyst firm In-Stat predicts the total USB market to double by 2010 with over 2.8 billion devices shipping that year. Out of that total, approximately 280 million (or 10 percent) will be wireless USB devices with the initial volume of product beginning in 2007.

In the second quarter, much of the companies focus was on converting our entire product line for the new RoHS Directive, which took affect July 1, 2006. The RoHS Directive is “the restriction of the use of certain hazardous substances in electrical and electronic equipment". This Directive bans the placing on the EU market of new electrical and electronic equipment containing more than agreed levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants. This was an important task for Icron to enable the company to continue to grow its market globally.

Icron continues to expand out of its traditional niche, it has identified opportunities and partners with complimentary applications in the Video extension market, Remote Desktop, KVM Extension (Keyboard, Video and Mouse), and digital home media servers applications. These markets are expected to grow substantially in the coming years and are ideal applications that benefit greatly from Icron’s ExtremeUSB technology.

For the remainder of 2006, the company will focus on two key areas: expanding its distribution for its traditional packaged and OEM products in Asia and other markets and engaging with more partners and customers with wireless USB solutions on a variety of RF platforms.

The Company’s Research and Development initiatives are currently focused on significant cost reduction and new a format of solutions in both wired and wireless markets which we believe will enable the company to add considerably to its overall revenue and unit growth starting in 2007.

Icron is in a strong financial position with the necessary resources to fund its operating and capital requirements and to execute on its growth strategies.

Financials:

“We posted record sales of $1,494,896 for the second quarter of 2006, an increase of 39.6% compared to the second quarter of 2005,” said Todd Hamel, VP Finance. “We are very enthusiastic about the opportunities for continued growth in our core business. We plan on bringing new products to the market in the coming quarters and continue to open new channels.”

Our revenue for the three months ended June 30, 2006 amounted to $1,494,896, gross margin was $707,779, operating expenses were $747,526 and the net loss was only $39,747. Our loss per share was $0.00 for the second quarter of 2006. Our balance sheet remains strong, with $4,527,650 of cash and short-term investments.

Results for the second quarter of 2006, compared to the second quarter of 2005 are as follows:

Second quarter revenue increased by 39.6% to $1,494,896 in 2006, from $1,070,620 for the same period in 2005. Gross margins for the second quarter of 2006 was 47.3% of revenue compared to 48.1% for the same period of 2005. Operating expenses were $747,526 in the second quarter of 2006 compared to $733,527 for the second quarter of 2005, Net loss for the second quarter of 2006 was $39,747 compared to a net loss in the second quarter of 2005 of $218,071. Second quarter operating expenses include $39,203 in stock-based compensation, compared to $18,265 in the second quarter of 2005.

Results of the first six months of 2006, compared to the first six months of 2005 are as follows:

Revenue for the six months increased by 47.5% to $2,899,069, compared to $1,964,829 in the same period of 2005. Gross margin amounted to $1,338,746 in the first half of 2006, compared to $934,629 in the first half of 2005. Our gross margin percentage decreased to 46.2% for the six months ended June 30, 2006, compared to 47.6% in the same period of 2005. The decrease in margins is attributable to the product mix. Operating expense were $1,468,969 for the first six months of 2006 compared to $1,319,846 reported in the same period of 2005. The net loss for the first six months totaled $130,223 compared to a loss in 2005 of $385,217. Included in operating expenses for the first six months is $78,406 in stock-based compensation compared to $36,530 in same period of 2005.

For complete financials please visit www.sedar.com. or www.icron.com.

Conference Call / Web-cast: Thursday August 24th , 2006, 4:30 PM ET, 1:30 PM PST

Icron Technologies will host a conference call to discuss the Company's year-end financial results on Thursday August 24, 2006 at 4:30PM EST, 1:30PM PST. Participants are asked to call either 800–814-4857 or 416-644-3416(Toronto).

The conference will also be broadcast live over the Internet and archived through the following link: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1578720 Click on this link or copy to your web browser to listen online.

About Icron Technologies Corp www.icron.com.

Icron Technologies Corporation’s patented ExtremeUSB® technology extends the range of USB in wired environments and enables wireless USB over any RF technology. ExtremeUSB is the only USB-IF compliant extension solution and is deployed globally in a wide range of applications including: industrial automation, medical device, aerospace, KVM and computer networking. ExtremeUSB technology is available in a variety of formats including technology licenses, OEM modules, developer kits, as well as branded and private-label products. The company also provides a range of engineering and development services focused on unique USB connectivity issues."

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 TSX 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.

2005 Icron Technologies Corporation. ExtremeUSB®, USB Ranger™ are trademarks of Icron Technologies Corporation.

Distributed by Filing Services Canada and retransmitted by Market Wire

Contact Information