Weak First Quarter Expected to be Offset by Strong Orders for Balance of Year
Listing:TSX Venture Exchange
LINCOLN, England, Feb. 20, 2013 /CNW/ - Dynex Power Inc., a leading, high
power semiconductor company, today issued guidance on its outlook for 2013 and
also announced that it has received significant new orders from a major
In the President's Letter and the Management Discussion and Analysis issued
with the Financial Statements for the quarter ended September 30th, 2012,
management indicated that they expected revenue to be slightly higher in the
fourth quarter of 2012 with net profit in the fourth quarter at a similar
level to that reported in the third quarter. These forecasts remain unaltered.
In a press release dated November 12th, 2012, management indicated that it was
cautious about the outlook for the first quarter of 2013 but remained
confident that there would be annual growth in revenue in 2013 compared to
Management now believes that revenue in the first quarter of 2013 will be
significantly lower than in recent quarters. As a result, the Company may
operate below break-even. The revenue reduction reflects the slow recovery in
global markets, a temporary decline in orders from China and a delay to orders
for major contracts in Europe. Nevertheless, management continues to be
confident that the Company will achieve revenue growth in 2013 compared to
2012 and that net profit will be similar to or slightly ahead of the figure
reported in 2012. This confidence is supported by recent orders received.
The Company has received a series of orders from Alstom Grid UK Ltd covering
the supply of semiconductor devices and power assemblies for the South West
High Voltage Direct Current (HVDC) converter stations project in Sweden.
Deliveries will commence in the second quarter of 2013 and last for nearly 12
months. Taken together, the orders cover the supply of bipolar discrete
devices, IGBT modules and power assemblies for a total value of $7.4 million
Dr. Paul Taylor, President and Chief Executive Officer commented, "We are
delighted to be able to assist Alstom in their fulfilment of these important
orders. Our pricing has had to be very tight to win these contracts and we had
hoped that deliveries could have commenced in the first quarter of 2013, but
nevertheless we are delighted to be able to demonstrate our expertise to an
important customer like Alstom Grid. The successful execution of orders such
as these positions Dynex well for future global business."
Bob Lockwood, Chief Financial Officer commented, "World markets for Dynex
products have been weak for some time, however we believe that a turnaround is
now beginning. We believe the recent orders are tangible evidence of that
change and they should help ensure that we generate revenue growth in 2013. As
Paul indicated, we have had to be very competitive to win this business, and
to help Alstom Grid be sufficiently competitive to win the underlying contract
that provided us the business opportunity. Consequently, although these orders
allow us to forecast revenue growth in 2013, we cannot, at this stage,
forecast any significant growth in net profit for 2013 compared to 2012."
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high power
insulated gate bipolar transistor (IGBT) modules, high power electronic
assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS
IC's). The company's power products are used worldwide in power electronic
applications including electric power transmission and distribution, renewable
and distributed energy, marine and rail traction motor drives, aerospace,
electric vehicles, industrial automation and controls and power supplies. Our
IC products are used in demanding applications in the aerospace industry.
Dynex Semiconductor Ltd is its only operating business and is based in
Lincoln, England in a facility housing the fully integrated silicon
fabrication, assembly and test, sales, design and development operations.
Dynex is majority owned by Zhuzhou CSR Times Electric Co., Ltd.
Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the
People's Republic of China. It is listed on the Hong Kong stock exchange. CSR
Times Electric is mainly engaged in the research, development, manufacture and
sales of locomotive train power converters, control systems and other
train-borne electrical systems, as well as the development, manufacturing and
sales of urban railway train electrical systems. In addition, CSR Times
Electric is also engaged in the design, manufacturing and sales of electric
components including power semiconductor devices for the railway industry,
urban railway industry and non-railway purposes.
Press announcements and other information about Dynex are available at
Further information on CSR Times Electric can be found at
All monetary values expressed in this release are in Canadian Dollars unless
The TSX Venture Exchange has neither approved nor disapproved of the
information in this press release.
Dr. Paul Taylor President and Chief Executive Officer or Bob
Lockwood Finance Director and Chief Financial Officer Dynex Power Inc. Tel:
+44 1522 500 500 Email:firstname.lastname@example.org
SOURCE: DYNEX POWER INC.
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-0- Feb/20/2013 21:01 GMT
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