QUEBEC CITY, Sept. 1, 2011 /CNW Telbec/ - Lyrtech Inc. (Lyrtech or the Company) (TSXV: LTK), a leader in digital signal processing technologies,
announced today its financial results for the second quarter ended June
30, 2011. The Company's consolidated financial statements and
management report are available at www.sedar.com.
2011 second-quarter highlights
Revenues of $1.8 million
EBITDA of $0.3 million
"Q2 revenues were below our expectations but the market for our products
and services is strong." stated Louis Bélanger, president and CEO of
Lyrtech. "We are capitalizing on a robust pipeline for the next
quarters and on our efforts to improve our capital structure which will
enable the Company to capitalize on its OEM product lines from a sales
During the second quarter of 2011, total revenues reached $1.8 M,
compared to $2.0 M over the same period in 2010, representing a
decrease of 7%. Lower total revenues were the result of deferral of
revenue recognition related to specific unfinished contracts and longer
sales cycles for certain customers.
The gross margin reached 62 % of revenues during the second quarter of
2011, compared to 54 % over the same period in 2010. This increase
results from the fact that an important portion of the major contract
the Company worked on during this period is considered research and
Selling and marketing expenses reached $0.2 M in during the second
quarter of 2011, in line with the same period in 2010.
Administrative expenses reached $0.5 M in during the second quarter of
2011, a level similar to the same period in 2010.
Research and development expenses, net of tax credits, reached $0.4 M
during the second quarter of 2011, an increase of $0.2 M compared to
the same period in 2010. This increase results from the recording of
important research and development expenses related to a specific
contract the Company worked on during this period.
Financial expenses reached $0.6 M during the second quarter of 2011, an
increase of $0.2 M or over 142% compared to the same period in 2010.
The increase is related to important factoring charges linked to a
The Company recorded gains on debt redemption of $0.3 M during the
second quarter of 2011, compared to $0.4 M during the same period in
2010. These gains are non-recurring and the Company does not expect to
record gains on debt redemption every quarter.
The Company generated a net loss of $0.3 M during the second quarter of
2011, or $0.0073 per basic and diluted share, compared to a profit of
$0.1 M or $0.0031 during the same period in 2010.
The weighted average number of shares outstanding used to calculate the
basic net loss per share during the second quarter of 2011 was 39.3
As of August 31, 2011, Lyrtech had 40,997,634 class A shares issued and
paid, 15,077,445 warrants outstanding and 2,890,442 options outstanding
for a total of 58,965,521 shares on a fully diluted basis.
Non-IFRS financial measure
The Company uses only one financial measure that is not consistent with
international financial reporting standards (IFRS), 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-IFRS measure has no standardized meaning as
prescribed by IFRS 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
In thousands of dollars
Net loss and comprehensive profit for the period
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