With its operational and financial re-structuring completed, the Company
recorded record-high quarterly revenues of
Gross margin increased 25.7% to
Adjusted EBITDA is positive with the current quarterly result of
President and Chief Executive Officer,
During the third quarter, Avensys successfully qualified its new high powered pump laser combiner; launched a miniature DPSK demodulator for high bitrate telecommunications systems, experienced increased sales of its micro DPSK demodulator, and shipped a record 30,000 fiber bragg gratings. The Company is now manufacturing leading-edge components used in 40 gigabit communication systems and its fiber laser components are in significant demand.
Avensys Solutions division continues to perform steadily and is a solid
contributor to our overall revenue stream. On
Nine Months Results
For the nine months ended,
The revenues of the Avensys Tech fiber optics division increased 47.0% compared to the nine month period of the previous year and revenues of the Avensys Environmental Solutions division increased 2.2% compared to the nine month period of the previous year.
Gross margin improved to 36.3% as a percentage of consolidated revenues as
compared to 33.7% for the same period in the previous year. Loss from
Operations was
Conference Call
Avensys Corporation will host a conference call today at
Those who would like to participate on the conference call should dial
877-407-0782 (US and
A replay of the call will be available on the Company's Web site or by
dialing 877-660-6853 (US and
About Avensys Corporation
Avensys operates two divisions. 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 Environmental Solutions, the other division of Avensys, is an industry leader in providing instrumentation and integrated solutions for the monitoring of industrial processes and environmental surveillance applications for air, water and soil in the Canadian marketplace. To find out more about Avensys Technologies, please visit our website.avensystech.com. For more information on Avensys Environmental Solutions, please visit www.avensyssolutions.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.
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 third quarter of 2008 is as follows:
Adjusted EBITDA (Expressed in thousands of US Dollars) For the Three For the Nine Months Ended Months Ended March 31, March 31, 2008 2007 2008 2007 $ $ $ $ Net Income (Loss) (274) 32 (2,835) (1,658) Plus Interest expense, net 83 192 552 564 Depreciation and amortization 323 257 940 774 Loss on redemption of convertible debentures - - 1,423 - Debentures and preferred shares accretion 234 588 679 1,981 Change in fair value of derivative financial instruments 97 (676) (242) (1,663) Income Tax Benefit (275) (328) (869) (857) Adjusted EBITDA (Loss) 188 65 (352) (859) Condensed Financial Statements Interim Consolidated Statements of Operations - Unaudited (Expressed in thousands of U.S. Dollars, except for per share amounts) For the Three Months Ended March 31, 2008 2007 $ $ Revenue 5,780,795 4,428,989 Cost of Revenue 3,774,855 2,833,282 Gross Margin 2,005,940 1,595,707 Operating Expenses Depreciation and amortization 222,350 180,203 Selling, general and administration 1,676,049 1,275,013 Research and development 643,452 403,793 Total Operating Expenses 2,541,851 1,859,009 Loss from Operations (535,911) (263,302) Other Income (Expenses) (358,846) (107,783) Income Tax Benefit - Refundable tax credits 274,922 328,168 Non-Controlling Interest 86 (440) Results of Discontinued Operations 345,970 75,424 Net Income (Loss) (273,779) 32,067 Net Loss per share - Basic and Diluted (0.01) (0.00) Weighted Average Common Shares Outstanding 98,290,264 81,304,000 Interim Consolidated Balance Sheets - Unaudited (Expressed in thousands of U.S. Dollars) March 31, June 30, 2008 2007 $ $ ASSETS Current Assets 9,232,389 7,346,722 Property and equipment, net 2,495,938 2,279,973 Intangible assets 3,790,548 3,967,213 Goodwill 4,709,417 4,116,872 Deferred financing costs 418,501 376,794 Deposits 101,081 105,915 Total Assets 20,747,874 18,193,489 LIABILITIES AND STOCKHOLDERS' EQUITY Total Current Liabilities 7,898,391 6,749,921 Long-term debt, less current portion 170,617 174,412 Convertible debentures 1,132,045 1,275,458 Balance of purchase price payable 1,580,545 1,194,096 Derivative financial instruments 2,058,234 64,510 Total Liabilities 12,839,832 9,458,397 Non-controlling Interest 8,038 23,193 Total Stockholders' Equity 7,900,004 8,711,899 Total Liabilities and Stockholders' Equity 20,747,874 18,193,489
SOURCE Avensys Corporation