Lyrtech announces its 2010 year-end results—$1.3 M EBITDA

QUEBEC CITY, May 2 /CNW Telbec/ - Lyrtech Inc. (Lyrtech or the Company) (TSXV: LTK), a leader in digital signal processing technologies, announced today its financial results for the year ended December 31, 2010. The Company's consolidated financial statements and management report are available at www.sedar.com.

2010 highlights

•    Revenues of $8.6 million
•    EBlTDA of $1.3 million
•    Backlog of $30 million

"Our industry experienced a significant recovery in 2010 that translated into high-margin development contracts for the Company. Many of thèse hâve associated production contracts. Our digital signal processing development platforms were also in strong demand, especially by Asian customers (China, India, Japan). The combination of the strong demand in our three business verticals and our efforts to streamline our activities has helped us turn around our opérations. We can therefore proudly report an EBITDA of $1.3 million," stated Louis Bélanger, président and CEO of Lyrtech.

Financial review

During 2010, total revenues reached $8.6 M, compared to $7.2 M over the same period in 2009, representing a significant increase of 19 %. This growth is the result of an improvement in economic activity in our targeted markets in 2010 as well as strong sales in Asia.

The gross margin reached 44 % of revenues in 2010, compared to 30 % over the same period in 2009. This increase results from a higher percentage of revenues generated by engineering contracts that typically produce a higher gross margin than other products and services offered by the Company.

Selling and marketing expenses reached $0.7 M in 2010, a decrease of 15 % or $0.1 M compared to 2009. Lower selling and marketing expenses are the result of the adoption by the Company of a different marketing strategy whereas Lyrtech ceased dealing with agents in favour of distributors, the result being an increase in cost of sales (discounts) and a decrease in selling expenses (commissions).

Administrative expenses remained stable at $1.4 M in 2010 and 2009.

Research and development expenses, net of tax credits, reached $1.3 M in 2010, an increase of $0.2 M compared to the same period in 2009. Even if the Company capitalized $0.2 M of research and development expenses in 2010 compared to nil in 2009, this increase stems from the fact that an important project started in 2010 whereby important values are considered research and development expenses.

Financial expenses reached $2.0 M in 2010, an increase of $0.4 M or 25 % compared to 2009. The increase is the result of a higher turnover financed mostly through factoring. A significant portion of 2010 financial expenses is related to a specific contract resulting in factoring charges of $0.8 M. Foreign exchange activities generated a gain of $0.2 M this year compared to a loss of $0.2 M in 2009.

The Company recorded gains on debt redemption of $0.8 M in 2010, compared to $0.9 M in 2009. This decrease is normal because there are less gains to be made than those realized in the past.

The net loss of 2010 was $0.9 M, or $0.032 per basic and diluted share, compared to a loss of $1.9 M or $0.077 in 2009.

The weighted average number of shares outstanding used to calculate the basic net loss per share in 2010 was 28.9 million shares.

As of April 29, 2011, Lyrtech had 39,838,156 shares outstanding, 18,050,778 warrants and 2,890,442 options outstanding for a total of 60,779,376 shares on a fully diluted basis.

Non-GAAP financial measure

The Company uses only one financial measure that is not consistent with generally accepted accounting principles (GAAP) in Canada, namely earnings before interest, income taxes, depreciation and amortization (EBITDA). Such a measure is used because the management believes it provides meaningful information about the Company's performance and operating results. Such a non-GAAP measure has no standardized meaning as prescribed by GAAP and may not be comparable to similarly titled measures presented by other companies. Accordingly, it should not be considered in isolation. Refer to conciliation table below:

Reconciliation of EBITDA                                 2010

In thousands of dollars                              (12 months)
Net loss and comprehensive profit for the year     (918.7)
Amortization 220.6
Financial expenses 1,970.0
EBITDA 1,271.9

Forward-looking statements

This news release contains certain forward-looking statements concerning the future performance of the Company's business, its operations and its financial results and condition. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us.

About Lyrtech

Lyrtech, a proud member of the Texas Instruments Design House Network, develops and manufactures advanced digital signal processing solutions for companies worldwide, a vital technology to network and wireless communications, audio and video processing, as well as electronic systems in all fields of technology. Lyrtech offers a full range of DSP-FPGA development platforms, as well as design, prototyping, and manufacturing of electronic products. Lyrtech works in partnership with industry leaders such as Texas Instruments, The MathWorks, and Xilinx. Lyrtech's customers include many prestigious names of the consumer electronics, telecommunications, aerospace, and defense fields.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

 

 

 

 

 

 

 

SOURCE LYRTECH INC.

For further information:

Louis N. Bélanger, President and CEO
Lyrtech Inc.
(1) 418-877-4644
louis.belanger@lyrtech.com

Profil de l'entreprise

LYRTECH INC.

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