Icron reports third quarter 2008 Results



    BURNABY, BC, Oct. 29 /CNW/ - Icron Technologies Corporation (TSX Venture:
IT), the developers of ExtremeUSB, today released financial results for the
third quarter ending September 30, 2008.

    
    Highlights:

    -  Revenues of $2,298,207, an increase of 5.5% over the $2,177,427
       reported in the second quarter and a decrease of 4.8% over Q3 2007;

    -  2008 year-to-date revenues at $6,676,651, representing a 0.7% increase
       over the same nine-month period in 2007;

    -  Posted an increase in product margins to 49.9% in Q3 2008 from 46.1%
       in Q3 2007 and 49.5% for the first nine months of 2008 compared to
       46.4% in the same period of 2007;

    -  Posted a net loss for Q3 2008 of $55,616, as compared to a net income
       of $2,344 in the same period of 2007 as the Company increased R&D
       spending;

    -  The Company ended the quarter with a cash balance of $3,299,936 and
       working capital of $5,487,930;

    -  Added two new key executives to the management team, Brian Donnelly as
       VP of Marketing and Business Development and Sukhdeep Hundal as VP of
       Engineering;

    -  Released ExtremeUSB 2.0 Core 2100 Module daughter boards which offer
       twice the range at half the price of previous Icron USB 2.0 solutions;

    -  Ranked No. 44 among the 2008 Deloitte Technology Fast 50, a ranking of
       the 50 fastest growing Canadian technology companies;

    -  Subsequent to the quarter end, Icron acquired, from a third party, an
       early USB Extension patent that further strengthens our patent
       portfolio in our core market.
    

    Management's Comments:

    "The third quarter of 2008 continued to be strong for Icron in its
traditional business, despite the slowdown in other markets on a global
basis," commented Robert Eisses, President & CEO. "We are continuing in our
development efforts which are focused on delivering a lower cost ExtremeUSB on
a chip solution, and the company expects to have the solution in the market in
the 1st half of 2009. In addition, the acceptance of our recently released
Ranger USB 2.0 2100 Series product, which offers twice the distance at half
the price has been extremely favorable. The company continues to increase the
focus on the home connectivity market, and expects to show some solutions,
based on our PC to TV connectivity concept, to the market before the end of
the year. It is important to note that we have a strong balance sheet that is
enabling the company to be able to execute on our plans of entering new
markets with new solutions, without the requirement for further funding.
However, we will continue to monitor our customers and the global market
conditions for any signs of weakness in demand, but currently have a strong
backlog, with good visibility into our core markets for the foreseeable
future."

    Financials:

    Revenue amounted to $2,298,207 for the three months ended September 30,
2008, an increase of 5.5% over the $2,177,427 reported in the second quarter
and a decrease of 4.8% over Q3 2007. USB 1.1 sales decreased by 20.1% during
the quarter to $1,248,445 from the $1,563,032 recorded in the third quarter of
2007. Overall sales of USB 2.0 products increased 13.8% for the quarter, which
included customers transitioning over to the new USB 2.0 Ranger 2101 and 2104
product lines which had combined sales of $168,459 during the quarter, and the
legacy USB 2.0 product decreasing by 5.5% to $596,866 from the $631,398
reported in the same period of the prior year. Revenue amounted to $6,676,651
for the nine months ended September 30, 2008, compared to $6,631,150 in the
same period of 2007, an increase of 0.7%. USB 1.1 sales decreased by 11.8% in
the first nine months to $3,744,306 from the $4,244,806 recorded in the same
period of 2007. Sales of USB 2.0 products increased by 7.7% to $1,987,617 from
the $1,844,714 reported in the same period of the prior year. Sales of the new
Ranger 2101 and 2104 product lines had combined sales of $222,527.
    Gross margin amounted to $1,147,218 in the third quarter of 2008,
compared to $1,113,202 in the third quarter of 2007. Our gross margin
percentage increased to 49.9% for the three months ended September 30, 2008,
compared to 46.1% 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, which increased to $231,533 in the second
quarter of 2008, compared to $60,599 in the same period of 2007. Gross margin
in the first nine months of 2008 totaled $3,302,302, compared to $3,076,683 in
the same period of 2007. Our gross margin percentage increased to 49.5% for
the nine months ended September 30, 2008, compared to 46.4% in the same period
of 2007. Royalties and license agreements increased to $521,286 compared to
$169,637 in the same period of 2007.
    As a result of our significant increase in research and development
spending our net loss amounted to $55,616 or ($0.00) per share, in the three
months ended September 30, 2008, compared to net earnings of $2,344, or $0.00,
in the same period of 2007. Our net loss in the first nine months amounted to
$362,376 or $0.02 per share, compared to net earnings of $159,125, 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:

    Wednesday, October 29th, 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 Wednesday, October 29th, 2008 at 4:30PM EST,
1:30PM PST. Participants are asked to call (800) 591 7531 or (416) 644 3429
(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=2456740
    Click on this link or copy to your web browser to listen online.

    About Icron Technologies Corporation

    Icron Technologies is a visionary leader in high performance USB bridging
and extension solutions for commercial and industrial markets worldwide.
Icron's USB extension and bridging products are deployed in a wide range of
applications including: digital home connectivity, industrial automation,
medical imaging, aerospace, and KVM extension. Icron's patented ExtremeUSB(R)
technology extends the range of USB 1.1/2.0 over Cat 5, Wireless, Fibre,
Powerline, Coax and Phone lines, at distances of up to 40km. 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

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890