QUEBEC CITY, June 6 /CNW/ - Lyrtech Inc. ("Lyrtech") (TSX-V: LYT), a
worldwide leader in digital signal processing technologies, announced today
its results for the three-month period ended March 31, 2008.
2008 first quarter financial highlights
- Completion of sale of Innovator, Lyrtech's manufacturing division.
- Personnel and additional cost reductions implemented.
- Heavy restructuration costs related to bank repayment.
- Refinancing of its short-term assets and bank repayment.
- Issuance of $650,000 of convertible debentures.
- Break-even (earnings before income tax) operation attained in March.
- Significant new turnkey engineering orders in the area of wireless and
smart vision systems.
"January and February operations were made very difficult because of the
removal of our bank line and the disposal of Innovator, our manufacturing
division in Montreal. Significant non-recurring professional fees were
incurred during these first two months of 2008 because of these events.
Nevertheless, Lyrtech was able to carry all its operations and deliver its
backlog, thanks to its strategic manufacturing partnership with Enigma
Interconnect, and achieved break-even results in March. Additional personnel
and cost reduction measures were adopted during the first quarter of 2008
towards attaining profitability as rapidly as possible," declared Louis
Bélanger, president and CEO of Lyrtech.
For the three-month period ending March 31, 2008, total revenues from
continuing operations reached $2.0 M, an increase of $0.1 M from $1.9 M for
the same period in 2007.
The gross margin from continuing operations was 49% in the first quarter
of 2008, compared to 57% in 2007.
The net loss from continuing operations for the quarter ended March 31,
2008, was $0.6 M or $0.0025 per basic and diluted share compared to $0.3 M, or
$0.012 per basic and diluted share for the same period in 2007. This loss
includes a non-recurrent charge of $0.4 M related to the bank repayment
The net loss and comprehensive loss for the quarter ended March 31, 2008,
was $0.8 M or $0.0035 per basic and diluted share, compared to $0.65 M, or
$0.029 per basic and diluted share for the same period in 2007.
Lyrtech had cash totalling $0.4 M on March 31, 2008, a $0.2 M increase
from the balance of December 31, 2007.
On March 31, 2008, Lyrtech had 246,737,924 Class A shares issued and paid
161,372,830 warrants outstanding and 5,743,536 options outstanding for a total
of 413,854,290 shares on a fully diluted basis.
- Additional personnel reduction of more than 10%. This measure will
yield up to an additional $0.5 M in annual cost reduction.
- Sale of the 150th SFF SDR Development Platform, developed and
marketed in collaboration with Lyrtech partners Texas Instruments
and Xilinx. This milestone confirms Lyrtech's leading position in
embedded platforms for the development of next-generation wireless
systems. The SFF SDR Development Platform was responsible for
securing more than $1 M in engineering contracts in the area of GSM
and GPS wireless infrastructure and devices.
- Delivery of numerous smart vision systems and development platforms
in partnership with Texas Instruments and Xilinx. Smart vision
systems and products developed for turnkey customers were also
delivered and should enter a manufacturing phase this year.
- Sales and deliveries are reasonably steady and near budget, and
continue to show signs of sustained recovery and profitability.
- Share consolidation (10:1 ratio) underway and planned to be
completed in June, pending TSX approval.
This press release contains forward-looking statements that reflect the
company's current expectations regarding future events. These forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The company disclaims any obligation
to update these forward-looking statements.
Lyrtech 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 (through its manufacturing partner Enigma Interconnect). 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 defence fields.
For more information, visit www.lyrtech.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
For further information:
For further information: Louis Bélanger, president and CEO, Lyrtech
Inc., (418) 877-4644, firstname.lastname@example.org