Icron reports Q1 2007 results
BURNABY, B.C., May 1st, 2007 - Icron Technologies Corporation
(TSX Venture: IT), the developers of ExtremeUSB, today released
financial results for the first quarter ending March 31, 2007.
Highlights:
- Record revenues of $2,038,876 for the three months ended
March 31, 2007 an increase of 45.2% over Q1, 2006;
- Profit of $150,441 or $0.01 per share, for the three
months ended March 31, 2007, compared to a net loss of $90,476,
or $0.00, in the same period of 2006, this is the second
consecutive quarter of profitability;
- The Company ended the quarter with cash balances of $4,414,202;
- Announced and released the WiRanger Cable Free USB 2.0
hub, the industry’s first full function wireless USB
2.0 Hub based on an industry standard 802.11g radio;
- Announced that Fujitsu Component Ltd. has licensed Icron’s
ExtremeUSB Core for Fujitsu Component’s next generation
KVM (Keyboard, Video, Mouse) extension products;
- Announced that it has been issued a patent from the United
States Patent Office for enhancements to its ExtremeUSB
technology for high-speed USB 2.0 implementations;
- Formalized plans and schedule for the development of
the ExtremeUSB ASIC family.
Management's Comments:
“In the first quarter, we focused on continuing to
execute on our strategy to deliver ExtremeUSB based solutions
to more customers in more markets in more formats. The growth
in sales of our traditional products resulted in the best
quarter in the company’s nine-year history. Additionally
the announcement and subsequent release of our first wireless
product, the WiRanger Cable Free Hub, puts us in a tremendous
position for future growth,” said Robert Eisses, President
and CEO. “Revenues from the WiRanger will begin to appear
in Q2 results.”
“While revenues continue to grow, Icron’s management
has been investing significant time and resources to evolve
its ExtremeUSB technology into an integrated chip format,”
stated Eisses.
This development effort, which is planned to deliver an ASIC
by the end of the year, is the first in a family of ASIC devices
that will reduce the implementation cost of both wired and
wireless ExtremeUSB solutions. This program will ensure that
Icron is well positioned to take advantage of the growing
interest in its technology and solutions. This increased focus
on development of the ExtremeUSB ASIC will result in an increase
in R&D costs, which began in Q1 and will accelerate in
Q2 and may affect profitability for that quarter, but are
essential for our long-term growth strategy.
Management is pleased to be seeing consistent growth opportunities
for its solutions and technology from markets outside its
traditional customer base. As USB continues to be the defacto
standard for device connectivity to the PC or MAC, it is being
used in more applications and implementations well beyond
the desktop.
Financials:
Revenue amounted to $2,038,876 for the three months ended
March 31, 2007, compared to $1,404,172 in the same period
of 2006, an increase of 45.2%. USB 1.1 sales were strong during
the quarter as they increased 25.7%, to $1,228,476 from the
$977,635 recorded in the first quarter of 2006. This increase
can be attributed to strong sales of the Company’s Rover
and Core product lines, which increased 74.5% and 83.7% respectively.
Sales of USB 2.0 products increased by 188.7% to $655,700
from the $227,121 reported in the same period of the prior
year as we are now shipping four port and Fiber based USB
2.0 extenders to the market which were not available in the
first quarter of the previous year.
Gross margin amounted to $971,269 in the first quarter of
2007, compared to $630,967 in the same period of 2006. Our
gross margin percentage increased to 47.6% for the three months
ended March 31, 2007, compared to 44.9% of revenue in the
same period of 2006. The increase in margins is mainly attributable
to an increase in sales of 2.0 Fiber based products and licensing/royalty
revenues.
Our net earnings amounted to $150,441 or $0.01 per share,
in the three months ended March 31, 2007, compared to a net
loss of $90,476, or $0.00, in the same period of 2006. Net
earnings for the first quarter of 2007 include $48,087 of
stock-based compensation expense, compared to $39,203 in 2006.
For complete financials please visit www.sedar.com. or www.icron.com.
Conference Call / Web-cast: Tuesday May 1st, 2007, 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 Tuesday May 1st,
2007 at 4:30PM EST, 1:30PM PST. Participants are asked to
call either 1-800-587-1893 or 416-646-3096 (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=1846240
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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