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.
• 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.
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
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
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.
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