Icron reports second quarter 2008 Results



    BURNABY, BC, Aug. 19 /CNW/ - Icron Technologies Corporation (TSX Venture:
IT), the developers of ExtremeUSB, today released financial results for the
second quarter ending June 30, 2008.

    
    Highlights:

    -   Revenues of $2,177,000, a decrease of 0.1% from Q2 2007;

    -   2008 year-to-date revenues at $4,218,000 representing a 3.8% increase
        over the same six-month period in 2007;

    -   Posted an increase in product margins to 50.0% in Q2 2008 from 45.5%
        in Q2 2007 and 49.2% for the first half of 2008 compared to 46.5% in
        the first half of 2007;

    -   Increased royalty and licensing revenue to $137,000, a 195% increase
        from Q2 2007;

    -   Posted a net loss for Q2 2008 of $201,000, as compared to a net
        income $6,000 in the same period of 2007, primarily as a result of
        increased R&D spending;

    -   Invested $779,000 in product development, primarily in the Company's
        Chip development program, as compared to $553,000 in Q2 2007;

    -   The Company ended the quarter with a cash balance of $3,370,000, an
        increase of $110,000 from the end of Q1 2008;

    -   Strengthened management team with the addition of new VP Business
        Development & Marketing and new VP Engineering;

    -   Launched the new Ranger 2101 and 2104, the next generation of better,
        more cost effective, and more flexible USB 2.0 extension solutions;

    -   Announced the integration of Icron's ExtremeUSB technology into
        Savant Systems' Home Entertainment platform;

    -   Increased marketing activities on the rapidly developing home
        connectivity market, including speaking at the 2008 Connections,
        Digital Lifestyle conference.
    

    Management's Comments:

    "The second quarter of 2008 saw considerable change, as Icron embarked on
the next phase of growth with the launch of its next generation low cost USB
2.0 extension solutions. The focus on delivering lower cost USB 2.0 bridging
and extension solutions, in more formats, to more customers is beginning to
see benefits," commented Robert Eisses, President & CEO. "The release of these
new products, the continued focus on cost reduction and the addition to the
management team of veterans in the Consumer market has laid the groundwork for
Icron to be able to scale to the next level. We have identified a significant
market opportunity in the Home Connectivity space for our technology, which
continues to get validated in discussions and early engagements with
customers, and will start to translate into increased revenues toward the end
of this year."

    Financials:

    Revenue amounted to $2,177,000 for the three months ended June 30, 2008,
compared to $2,179,000 in the same period of 2007, a decrease of 0.1%. USB 1.1
sales decreased by 14.1% during the quarter to $1,249,000 from the $1,453,000
recorded in the second quarter of 2007. This decrease can be attributed to
existing customers transitioning over to the new Ranger 2101 and 2104 product
lines which had combined sales of $54,000. Sales of USB 2.0 products increased
by 13.9% to $635,000 from the $557,000 reported in the same period of the
prior year. Revenue amounted to $4,378,000 for the six months ended June 30,
2008, compared to $4,218,000 in the same period of 2007, an increase of 3.8%.
USB 1.1 sales decreased by 6.9% during the first half to $2,496,000 from the
$2,682,000 recorded in the first half of 2007. Sales of USB 2.0 products
increased by 14.6% to $1,391,000 from the $1,213,000 reported in the same
period of the prior year.
    Gross margin amounted to $1,089,000 in the second quarter of 2008,
compared to $992,000 in the second quarter of 2007. Our gross margin
percentage increased to 50.0% for the three months ended June 30, 2008,
compared to 45.5% in the same period of 2007. The increase in margin is mainly
attributable to better margins being generated from high volume products which
are manufactured in Asia. In addition, the Company saw higher sales of
royalties and license agreements. Gross margin amounted to $2,155,000 in the
first half of 2008, compared to $1,963,000 in the first half of 2007. Our
gross margin percentage increased to 49.2% for the six months ended June 30,
2008, compared to 46.5% in the same period of 2007.
    As a result of our significant increase in research and development
spending and increased sales and marketing costs our net loss amounted to
$201,000 or ($0.01) per share, in the three months ended June 30, 2008,
compared to net earnings of $6,000, or $0.00, in the same period of 2007. The
net loss for the six months ended June 30, 2008 amounted to $307,000 or $0.01
per share, compared to net earnings of $157,000, or $0.01, in the same period
of 2007.
    For complete financials please visit www.sedar.com or www.icron.com.

    Conference Call/Web-cast:

    Tuesday, August 19th, 2008, 4:30 PM ET, 1:30 PM PST
    Icron Technologies will host a conference call to discuss the Company's
quarterly financial results on Tuesday, August 19th, 2008 at 4:30PM EST,
1:30PM PST. Participants are asked to call (800) 732 6179 or (416) 644 3416
(Toronto).
    The conference will also be broadcast live over the Internet and archived
through the following link
    http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2382380
    Click on this link or copy to your web browser to listen online.

    About Icron Technologies Corporation

    Icron Technologies Corporation's patented ExtremeUSB(R) technology
extends the range of USB in wired environments and enables wireless USB over
any RF technology. ExtremeUSB is the only USB-IF compliant extension solution
and is deployed globally in a wide range of applications including: industrial
automation, medical device, aerospace, KVM and computer networking. ExtremeUSB
technology is available in a variety of formats including technology licenses,
OEM modules, developer kits, as well as branded and private-label products.
    Icron is a publicly traded corporation and trades under the symbol "IT"
on the TSX Venture Exchange. For more information on the company and its
products, please visit www.icron.com.

    FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all
statements in this news release - including, without limitation, statements
regarding financial estimates and future plans and objectives of Icron - are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate; actual
results and future events could differ materially from those anticipated in
such statements.

    %SEDAR: 00011716E




For further information:

For further information: Icron Investor Contact, Robert Eisses,
President & CEO, robert.eisses@icron.com, Phone: (604) 638-3924

Organization Profile

ICRON TECHNOLOGIES CORPORATION

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