Icron Reports Third Quarter Results
ExtremeUSB continues as the standard
for wired USB extension and true wireless USB 2.0 over any
radio.
BURNABY, B.C., November 9, 2006 - Icron Technologies Corporation
(TSX.V:IT), the developers of ExtremeUSB®, today released
financial results for the third quarter ending September 30,
2006 and a general business update.
Financial Highlights
- Robert Eisses has assumed the role of President and Chief
Executive Officer of the Company to lead it through its
next stage of development
- Posted record quarterly revenues of $1,610,373, during
Q3 representing a 42.1% increase over Q3 2005;
- 2006 year-to-date revenues at record $4,509,441, representing
a 45.6% increase over the same nine-month period in 2005;
- Excluding non-recurring charges, posted a Q3 2006 operating
profit of $12,397 compared to a loss of $103,300 in the
same period of 2005;
- The Company successfully moved its facilities to a larger
office to accommodate future growth of the business.
- The Company ended Q3 2006 with positive cash flow from
operations of $38,523 and cash balances of $4,159,776.
- During the quarter the Company completed the conversion
of it’s entire product line to RoHS (Restriction of
Hazardous Substances) compliant versions required for sale
in the European Union
Business Highlights:
- Wired extension markets experienced strong growth focused
on Remote Desktop applications, Home Media Server extenders,
KVM Extensions in the corporate environment as well as whiteboard
presentation systems applications in the educational and
corporate presentation markets.
- Formalized partnership with Inova Semiconductor for a
combined Video and USB extension solution, which is currently
shipping to Industrial Remote Terminal manufacturers in
Germany.
- Announced a partnership with Global Interface Technologies
of Japan for Icron’s ExtremeUSB technology for integration
with its wireless UWB platform.
- Continued development for a Wireless USB 2.0 product based
on industry standard 802.11g chipsets.
With upwards of 2 Billion USB ports currently deployed and
another 2 Billion forecast to be deployed by 2009, there is
tremendous upside to the market potential for USB extension
in the future. Robert Eisses, recently appointed President
and CEO states, “I am extremely excited to lead Icron
to its next step of evolution. We are executing on our 802.11
and UWB wireless programs, continuing to upgrade our market
leading USB 2.0 solutions, and researching ASIC and software
solutions to enhance our product line for future growth.”
While the program with our initial partner Freescale has
formally ended, the development work done for the Cable Free
USB architecture is being ported over to other UWB and 802.11
platforms and will result in solutions available to the market
during 2007. While the UWB market is in its infancy, and it
will take time to see substantial order volumes, we will continue
to assist UWB companies to offer true wireless USB functionality.
Our immediate focus on using 802.11g chipsets for a Wireless
USB solution will address a number of shortcomings associated
with UWB including: lower cost, improved range, maturity of
technology, international regulatory approvals and general
market acceptance.
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.
All of Icron’s Ranger products are based on the patented
ExtremeUSB technology, which manages the very strict transmit/acknowledge
timing on the USB interface to allow native USB extension
over any physical media. ExtremeUSB is the only USB-IF compliant
extension solution and is deployed globally in a wide range
of applications including: industrial automation, medical
devices, aerospace, KVM and computer networking. All ExtremeUSB
Ranger™ products support all USB device types, are fully
plug and play requiring no software drivers, and support multiple
operating systems including Windows, Mac O/S, Linux, Solaris
and Unix. All Icron solutions are available as fully packaged
product or as OEM solutions spanning from white-labelled complete
units, to turnkey hardware, embedded cores, and design licenses.
Icron also continues to expand out of its traditional niche
market. It has identified opportunities and partners with
complimentary applications in the Video extension market.
We believe that the combination of USB and Video extended
over a single media such as CAT5, Fiber, Coax or even Powerline
represents a growing market opportunity that we are helping
to define and deliver on. Our first partner delivers DVI quality
over Cat5, with the addition of USB 1.1. Other partners have
developed Video over USB 2.0 solutions, which are complementary
to our existing USB 2.0 Ranger product line. The applications
these solutions address include, 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: firstly, expanding distribution for its traditional
packaged and OEM products in Asia and other markets; and secondly,
engaging 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 a
new 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 another record quarter as sales reached
$1,610,373 for the third quarter”, said Todd Hamel,
VP Finance. “We continue to be very enthusiastic about
the continued growth in our core business as well as the opportunities
for the wireless solutions we plan on bringing to the market
in 2007. We generated positive cash flow from operations this
quarter and our balance sheet remains strong, with $4,159,776
in cash and short-term investments.”
Results for the third quarter of 2006, compared to
the third quarter of 2005 are as follows:
Third quarter revenue increased by 42.1% to $1,610,373 in
2006, from $1,132,915 for the same period in 2005. Gross margins
for the third quarter of 2006 was 46.8% of revenue compared
to 48.0% for the same period of 2005. Operating expenses were
$1,047,859 in the third quarter, and included a one-time non-recurring
charge of $305,426 pertaining to the departure of Mr. Singh
from the Company as President and CEO. This compared to $647,508
in operating expenses for the third quarter of 2005. Net loss
for the third quarter including non-recurring charges was
$293,029 compared to a net loss in the third quarter of 2005
of $103,300. Third quarter operating expenses include $47,683
in stock-based compensation, compared to $18,265 in the third
quarter of 2005.
Results of the first nine months of 2006, compared
to the first nine months of 2005 are as follows:
Revenue for the nine months increased by 45.6% to $4,509,441,
compared to $3,097,744 in the same period of 2005. Gross margin
amounted to $2,093,576 in the first nine months of 2006, compared
to $1,478,837 in the same period of 2005. Our gross margin
percentage decreased to 46.4% for the nine months ended September
30, 2006, compared to 47.7% in the same period of 2005. The
decrease in margins is attributable to the product mix, which
has seen a shift to lower margin Rover products. Operating
expenses including non-recurring charges were $2,616,288 for
the first nine months of 2006 compared to $1,969,767 reported
in the same period of 2005. Our net loss amounted to $423,252
or ($0.02) per share, in the nine months ended September 30,
2006, compared to a net loss of $488,518, or ($0.03), in the
same period of 2005. Excluding non-recurring charges, the
net loss for the nine months ended September 30, 2006 was
$117,826 or ($0.01). The decreased loss is a result of the
continued growth of our traditional packaged product business.
Included in operating expenses for the first nine months is
$126,088 in stock-based compensation compared to $54,795 in
same period of 2005.
For complete financials please visit www.sedar.com.
or www.icron.com.
Conference Call / Web-cast: Thursday November
9th , 2006, 4:15 PM ET, 1:15 PM PST
Icron Technologies will host a conference call to discuss
the Company's year-end financial results on Thursday August
24, 2006 at 4:15PM EST, 1:15PM PST. Participants are asked
to call either 1-800-814-4890 or 416-644-3420
(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=1666940
Click on this link or copy to your web browser to listen online.
About Icron Technologies Corporation 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.
Icron is a publicly traded corporation and trades under the
symbol "IT" on the TSX Venture Exchange. For more information
on the company and its products, please visit www.icron.com
Contact Information
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.
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