Lyrtech announces its 2011 second quarter results

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 perspective."

Financial review

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 development expenses.

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 specific contract.

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 million shares.

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   2011
  In thousands of dollars   (3 months)
  Net loss and comprehensive profit for the period                       (284.8)
  Amortization                       47.6 
  Financial expenses                     583.6
  EBITDA   346.4

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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