Icron reports third quarter 2007 results
BURNABY, B.C., November 7th, 2007 - Icron Technologies Corporation (TSX Venture: IT), the developers of ExtremeUSB, today released financial results for the third quarter ending September 30, 2007.
Highlights:
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2007 year-to-date revenues at record $6,631,150, representing a 47.1% increase over the same nine-month period in 2006;
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The Company has increased Research and Development spending to accelerate the evolution of its ExtremeUSB IP Core, for use in our own ASIC program, alternate FPGAs implementations and other core licensing opportunities.
Management's Comments:
“As Icron continues to execute on our plan of making its ExtremeUSB platform more portable, flexible and cost effective, we continue to see solid growth in our legacy markets,” commented Robert Eisses, President & CEO, “The introduction of our wireless USB 2.0 solution helped our growth, but at the same time the company was again negatively affected by the US Dollar devaluation this quarter. However, net effect was continued positive growth and we are very happy with the results.”
The company continues to invest in research and development on our next generation ExtremeUSB platform, which will give us the added flexibility to implement solutions in more ways including creating our own ASIC, using more cost effective FPGAs, as well as entering into lP Core license agreements more readily. These benefits will start to be seen in 2008 as the new platform is released to the market. The company also announced support from the Canadian Government under the IRAP program which will help offset some of the development costs over the next 12 months.
The continued growth of USB 2.0 connectivity in the market has helped Icron’s continued growth and the company sees it continuing as it becomes more prevalent in all application areas including home connectivity, medical, industrial, commercial and transportation/automotive applications.
Financials:
Revenue amounted to $2,412,917 for the three months ended September 30, 2007, compared to $1,610,373 in the same period of 2006, an increase of 49.8%. It should be highlighted that the increase in the value of the Canadian dollar had a significant impact on the Company’s revenue. Using the average exchange rates from the third quarter of 2006 revenue for the third quarter of 2007 would have been in excess of $2,580,000 representing a 60.2% increase. USB 1.1 sales were strong during the quarter as they increased 44.9%, to $1,563,032 from the $1,078,464 recorded in the third quarter of 2006. This increase can be attributed to strong sales of the Company’s Rover and Core product lines, which increased 52.2% and 58.1% respectively. Sales of USB 2.0 products increased by 77.3% to $623,492 from the $351,713 reported in the same period of the prior year, due to the strong growth of four port and Fiber based USB 2.0 extenders, which increased by 396.5% and 88.2% respectively.
Sales of the Company’s new wireless WiRanger product totalled $119,565, an increase of 70.1% from second quarter’s sales of $70,297.
Gross margin amounted to $1,113,202 in the third quarter of 2007, compared to $754,830 in the same period of 2006. Our gross margin percentage decreased to 46.1% for the three months ended September 30, 2007, compared to 46.9% of revenue in the same period of 2006. The decrease in margins is mainly attributable to a decrease in License Agreement Revenue, which was $12,012 in the third quarter of 2007 versus $123,680 in the same period of 2006. Gross margin should continue to improve in the fourth quarter as the full effects of the cost-reductions take place.
Our net earnings amounted to $2,344 or $0.00 per share, in the three months ended September 30, 2007, compared to a net loss of $293,029, or $0.01, in the same period of 2006.
For complete financials please visit www.sedar.com. or www.icron.com.
Conference Call / Web-cast: Wednesday, November 7th, 2007, 4:30 PM ET, 1:30 PM PST
Icron Technologies will host a conference call to discuss the Company's quarterly financial results on Wednesday November 7th, 2007 at 4:30PM EST, 1:30PM PST. Participants are asked to call either 1-800-588-4942 or 416-644-3429 (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=2087140
Click on this link or copy to your web browser to listen online.
About Icron Technologies Corporation
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.
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Contact Information
Icron Investor Contact
Robert Eisses, President & CEO
robert.eisses@icron.com Phone: + 1 604 638 3924
Icron Media Contact
Brigitta Shore Phone: +1 604 729 9479
brigitta.shore@icron.com
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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