Icron Reports Second Quarter 2008 Results
BURNABY, B.C. August 19, 2008-
– Icron Technologies Corporation (TSX Venture: IT),
the developers of ExtremeUSB, today released financial results
for the second quarter ending June 30, 2008.
Highlights:
• Revenues of $2,177, 000, a decrease of 0.1% from
Q2 2007;
• 2008 year-to-date revenues at $4,218,000 representing
a 3.8% increase over the same six-month period in 2007;
• Posted an increase in product margins to 50.0% in
Q2 2008 from 45.5% in Q2 2007 and 49.2% for the first half
of 2008 compared to 46.5% in the first half of 2007;
• Increased royalty and licensing revenue to $137,000,
a 195% increase from Q2 2007;
• Posted a net loss for Q2 2008 of $201,000, as compared
to a net income $6,000 in the same period of 2007, primarily
as a result of increased R&D spending;
• Invested $779,000 in product development, primarily
in the Company’s Chip development program, as compared
to $553,000 in Q2 2007;
• The Company ended the quarter with a cash balance
of $3,370,000, an increase of $110,000 from the end of Q1
2008;
• Strengthened management team with the addition of
new VP Business Development & Marketing and new VP Engineering;
• Launched the new Ranger 2101 and 2104, the next generation
of better, more cost effective, and more flexible USB 2.0
extension solutions;
• Announced the integration of Icron’s ExtremeUSB
technology into Savant Systems’ Home Entertainment platform;
• Increased marketing activities on the rapidly developing
home connectivity market, including speaking at the 2008 Connections,
Digital Lifestyle conference.
Management's Comments:
“The second quarter of 2008 saw considerable change,
as Icron embarked on the next phase of growth with the launch
of its next generation low cost USB 2.0 extension solutions.
The focus on delivering lower cost USB 2.0 bridging and extension
solutions, in more formats, to more customers is beginning
to see benefits,” commented Robert Eisses, President
& CEO. “The release of these new products, the continued
focus on cost reduction and the addition to the management
team of veterans in the Consumer market has laid the groundwork
for Icron to be able to scale to the next level. We have identified
a significant market opportunity in the Home Connectivity
space for our technology, which continues to get validated
in discussions and early engagements with customers, and will
start to translate into increased revenues toward the end
of this year."
Financials:
Revenue amounted to $2,177,000 for the three months ended
June 30, 2008, compared to $2,179,000 in the same period of
2007, a decrease of 0.1%. USB 1.1 sales decreased by 14.1%
during the quarter to $1,249,000 from the $1,453,000 recorded
in the second quarter of 2007. This decrease can be attributed
to existing customers transitioning over to the new Ranger
2101 and 2104 product lines which had combined sales of $54,000.
Sales of USB 2.0 products increased by 13.9% to $635,000 from
the $557,000 reported in the same period of the prior year.
Revenue amounted to $4,378,000 for the six months ended June
30, 2008, compared to $4,218,000 in the same period of 2007,
an increase of 3.8%. USB 1.1 sales decreased by 6.9% during
the first half to $2,496,000 from the $2,682,000 recorded
in the first half of 2007. Sales of USB 2.0 products increased
by 14.6% to $1,391,000 from the $1,213,000 reported in the
same period of the prior year.
Gross margin amounted to $1,089,000 in the second quarter
of 2008, compared to $992,000 in the second quarter of 2007.
Our gross margin percentage increased to 50.0% for the three
months ended June 30, 2008, compared to 45.5% in the same
period of 2007. The increase in margin is mainly attributable
to better margins being generated from high volume products
which are manufactured in Asia. In addition, the Company saw
higher sales of royalties and license agreements. Gross margin
amounted to $2,155,000 in the first half of 2008, compared
to $1,963,000 in the first half of 2007. Our gross margin
percentage increased to 49.2% for the six months ended June
30, 2008, compared to 46.5% in the same period of 2007.
As a result of our significant increase in research and development
spending and increased sales and marketing costs our net loss
amounted to $201,000 or ($0.01) per share, in the three months
ended June 30, 2008, compared to net earnings of $6,000, or
$0.00, in the same period of 2007. The net loss for the six
months ended June 30, 2008 amounted to $307,000 or $0.01 per
share, compared to net earnings of $157,000, or $0.01, in
the same period of 2007.
For complete financials please visit www.sedar.com or www.icron.com.
Conference Call / Web-cast:
Tuesday, August 19th, 2008, 4:30 PM ET, 1:30 PM PST
Icron Technologies will host a conference call to discuss
the Company's quarterly financial results on Tuesday, August
19th, 2008 at 4:30PM EST, 1:30PM PST. Participants are asked
to call (800) 732 6179 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=2382380
Click on this link or copy to your web browser to listen online.
About Icron Technologies Corp
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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