The results for this first quarter are in line with our expectations.
Total consolidated revenue for the first quarter, ended
Gross margin on a consolidated basis of
As a result of the Willer acquisition, Avensys Solutions, our
environmental and process monitoring business, more than doubled its revenues
compared to a year ago. It also booked more than
Avensys Tech, our optical component business, performed in line with expectations, but is running behind the results for the same period in the previous fiscal year showing at 9% decrease in revenues.
Our Fiber Bragg Grating (FBG) business achieved outstanding growth representing an increase of 199% in monthly shipments compared to the same period last year. Considering the highly competitive nature of this business, this significant gain in market share leads to greater efficiency and economies of scale. Our Multi-mode combiners (MMC) sales, addressing the industrial fiber laser market, were also ahead of last year's pace.
We are proud to announce some recent successes related to key R&D efforts.
We received our first purchase order for 40 units of our new micro-DPSK
product launched in
Our undersea business, which is driven by large project builds and therefore does not provide a comparable stream of revenues from quarter to quarter, played a major role in the overall reduction of revenues for Avensys Tech when comparing with results for the same period last year. However, booked orders so far indicate that the business will pick up as expected in the second quarter.
President and Chief Executive Officer,
Mr. Fraser added, "In order to support our growing operations and to address liquidity concerns, we are exploring means of restructuring our debt and of obtaining additional conventional short term credit. However, we are satisfied with our overall performance during the first quarter of fiscal year 2009. Given the current global economic situation, we will remain careful, and continue to monitor market trends while ensuring that we invest wisely and control expenses diligently."
About Avensys Corporation
Avensys Corporation operates Avensys Inc., its wholly-owned core subsidiary. Avensys Inc., through its manufacturing division Avensys Technologies, designs, manufactures, distributes, and markets high reliability optical components and modules as well as FBGs for the telecom market and high power devices and sub-assemblies for the industrial market. Avensys Technologies is also a pioneer in the development of packaged fiber-based sensors and possesses licences in regards to leading edge intellectual property. Avensys Solutions, the other division of Avensys Inc., is an industry leader in providing instrumentation and integrated solutions for the monitoring industrial processes and environmental surveillance applications for air, water and soil in the Canadian marketplace. To find out more about Avensys, please visit our website at www.avensys.com. For Avensys Corporation company news and updates you can also visit www.avensyscorporation.com.
Forward-Looking Statements:
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
For more information, please contact: Ms. Marie-Annick Riel Avensys Corporation Tel: 1.877.904.6030
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures, such as adjusted EBITDA, to complement its consolidated financial statements presented in accordance with GAAP. Non-GAAP financial measures do not have any standardized definition and, therefore, are unlikely to be comparable to similar measures presented by other reporting companies. These non-GAAP financial measures are intended to supplement the user's overall understanding of the Company's current financial and operating performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by identifying certain expenses, gains and losses that, when excluded from the GAAP results, may provide additional understanding of the Company's core operating results or business performance, which management uses to evaluate financial performance for purposes of planning for future periods. However, these non-GAAP financial measures are not intended to supersede or replace the Company's GAAP results.
The company uses adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for debentures and preferred shares accretion, and changes in fair value of derivative instruments) as a non-GAAP financial measure in this press release. A reconciliation of EBITDA to the operating loss for the first quarter of 2009 is as follows:
Adjusted EBITDA (Expressed in thousands of US Dollars) For the Three Months Ended September 30, 2008 2007 Net Income (Loss) (570) (2,142) Plus Interest expense, net 75 309 Depreciation and amortization 306 297 Loss on redemption of convertible debentures - 1,423 Debentures and preferred shares accretion 303 227 Change in fair value of derivative financial instruments (332) 272 Income Tax Benefit (158) (169) Adjusted EBITDA (Loss) (376) 217 Condensed Financial Statements Consolidated Statements of Operations (Expressed in thousands of U.S. Dollars, except for per share amounts) For the Three Months Ended September 30, 2008 2007 $ $ Revenue 5,691 4,798 Cost of Revenue 3,930 2,749 Gross Margin 1,761 2,049 Operating Expenses Depreciation and amortization 231 209 Selling, general and administration 1,770 1,564 Research and development 397 464 Total Operating Expenses 2,398 2,237 Loss from Operations (637) (188) Other Income (Expenses) (91) (2,218) Income Tax Benefit - Refundable tax credits 158 169 Non-Controlling Interest - - Results of Discontinued Operations - 96 Net Loss (570) (2,141) Net Loss per share - Basic and Diluted (0.01) (0.02) Weighted Average Common Shares Outstanding 99,072,565 95,212,000 Consolidated Balance Sheets (Expressed in thousands of U.S. Dollars) September 30, June 30, 2008 2008 $ $ ASSETS Current Assets 9,990 9,836 Property and equipment, net 2,288 2,490 Intangible assets 3,585 3,879 Goodwill 4,451 4,645 Deferred financing costs 380 405 Deposits 166 85 Total Assets 20,860 21,340 LIABILITIES AND STOCKHOLDERS' EQUITY Total Current Liabilities 9,700 9,137 Long-term debt, less current portion 164 191 Convertible debentures 1,494 1,299 Balance of purchase price payable 1,383 1,706 Derivative financial instruments 1,440 1,364 Total Liabilities 14,181 13,697 Non-controlling Interest 7 8 Total Stockholders' Equity 6,672 7,635 Total Liabilities and Stockholders' Equity 20,860 21,340
SOURCE Avensys Corporation