Quebec City, May 31 /CNW Telbec/ - Lyrtech Inc. (Lyrtech or the Company) (TSX-V: LTK), a firm specializing in digital signal processing technologies, today announced its financial results for the three-month period ending March 31, 2010. The Company's interim consolidated financial statements and management report are available at www.sedar.com.
2010 first quarter highlights
- Net profit of $0.1 M.
- Profit before financial expenses and amortization of $0.3 M.
- Backlog of over $6 M to be delivered in 2010.
"The global economy crisis has impacted us during 2009. While we maintained our ability to deliver our backlog, new orders were slow, while some contracts were put on hold. However, we have seen a clear rebound in the first quarter of 2010 with significant favourable impact on our backlog which now totals $6 M. We are proud to have turned around our operations and declare a net profit of $0.1 M and a profit before financial expenses and amortization of $0.3 M", declared Louis N. Bélanger, president and CEO of Lyrtech.
During the first quarter of 2010, total revenues reached $1.7 M, compared to $1.9 M during the same period in 2009, representing a decrease of 13 %. This decrease in revenues mainly results from the fact that approximately $0.4 M worth of shipments are subject to export licenses following higher controls from customs on export of technical products.
Gross margin reached 40 % of revenues during the first quarter of 2010, the same level as the one during the first quarter of in 2009. The variation is mainly explained by the mix of revenues.
Selling and marketing expenses were comparable between the first quarters of 2010 and 2009, both with $0.2 M.
Administrative expenses were comparable between the first quarters of 2010 and 2009, both with $0.3 M.
Research and development expenses, net of tax credits, were comparable between the first quarters of 2010 and 2009, both with $0.2 M.
Financial expenses reached $0.2 M during the first quarter of 2010, a slight decrease of $0.1 M compared to the same period in 2009. The mix did however vary since factoring charges increased by $0.1 M because of higher balances factored and foreign exchange activities generated a small gain during the first quarter of 2010 compared to a loss of $0.1 M during the same period in 2009.
The Company successfully negotiated with unpaid suppliers of the discontinued activities for repayments below their face value on terms the Company could afford and in the respect of said suppliers. This effort concluded in a gain of $0.3 M on forgiveness of debt during the first quarter of 2010 and $0.1 M during the first quarter of 2009.
The net profit for the first quarter of 2010 was $0.1 M, or $0.0032 per basic and diluted share, compared to a loss of $0.1 M during the same period in 2009, or $0.0042 per basic and diluted share.
As of May 31, 2010, Lyrtech had 24,673,792 class A shares issued and paid, 16,137,283 warrants outstanding and 1,931,042 options outstanding for a total of 42,741,580 shares on a fully diluted basis.
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 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 defence fields. For more information, visit www.lyrtech.com.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
SOURCE LYRTECH INC.
For further information: For further information: Louis N. Bélanger, president and CEO, Lyrtech Inc., (418) 877-4644, firstname.lastname@example.org