Gennum strongly positioned to capitalize on significant market expansion
of high speed networks
BURLINGTON, ON, Oct. 28 /CNW/ - Gennum Corporation ("Gennum" or the "Company") (TSX: GND) today is holding an investor day event in Toronto to provide investors with a business update and a clear vision of the Company's growth strategy, prospects and future potential.
Outlining the vision for the Company during the investor day event, Dr. Franz Fink, President and Chief Executive Officer, is addressing Gennum's leadership position in the market for high speed mixed-signal ICs for high performance networking, storage and telecommunications applications.
The general managers of Gennum's three product groups - Analog & Mixed Signal Products, Optical Products and Snowbush IP, are addressing the compelling offerings of their product portfolios. With focused strategy and execution over the past three years, each product group has developed a strong foundation for growth with their differentiated products and is expanding customer relationships, achieving leading market positioning in their product categories.
"We are uniquely positioned to benefit from the high speed network expansion that is underway globally," said Dr. Fink. "With clear and differentiated technology leadership in this market, we are well positioned to deliver profitable growth in 2010 and beyond."
"Long-term growth based on market fundamentals and our technology leadership is promising," commented Mr. Gordon Currie, Senior Vice President, Finance & Administration and Chief Financial Officer. "After a couple of tough quarters during this economic downturn, visibility has significantly improved, as is evidenced by positive order trends and new customer traction."
During its Investor Day event, beyond outlining its broader strategy and vision, the Company is reporting that:
- The positive trends in bookings and order flow previously reported by
Gennum have continued to date, with improved visibility as lead-times
- With increasing volumes, gross margins are improving from those
experienced in Q3 2009.
- Free cash flow is expected to improve in-line with the rest of
Gennum's business, with free cash flow expected to be positive in
- New product introductions are showing momentum with customer wins,
with new products growing as a percentage of revenue.
- The Company remains committed to its previously disclosed objectives
of greater than industry revenue growth, industry leading gross
margins and delivering greater than 20% operating earnings.
Gennum Corporation Investor Event
October 28, 2009, 8:30 AM ET
To listen to this event, please enter http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2861760 in your web browser.
Gennum Corporation designs innovative semiconductor solutions and intellectual property (IP) cores for the world's most advanced consumer connectivity, enterprise, video broadcast and data communications products. Leveraging the company's proven optical, analog and mixed-signal products and IP, Gennum enables multimedia and data communications products to send and receive information without compromising the signal integrity. An award winner for advances in high definition (HD) broadcasting, Gennum is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Korea, Germany, United States, Taiwan, India and the United Kingdom. www.Gennum.com.
Caution Regarding Forward-Looking Information
This news release contains statements which constitute forward-looking statements. These forward-looking statements are not descriptive of historical matters and may refer to management's expectations or plans. These statements include but are not limited to statements concerning: Gennum's business objectives and plans including Gennum's corporate strategy and strategic priorities; Gennum's future financial performance and prospects including revenues, gross margins and earnings; future trends in the semiconductor and intellectual property licensing industries and, in particular, market trends for analog and mixed-signal products, optical products and intellectual property products and licensing; Gennum's expectations for sales and licensing of its products in these markets including anticipated costs, sales, size, duration, growth or decline of market opportunities and competitive and pricing pressures in these markets; Gennum's product roadmap and the speed at which Gennum is able to introduce new products, as well as the penetration of these new products into the marketplace and with customers; the adoption of new standards in the markets in which Gennum competes and the ability of Gennum to anticipate these changes and successfully address new opportunities; sales and capital spending plans and estimates, shipment levels and operating expenses; exchange rate fluctuations in, and the relative values of, the Canadian dollar, the U.S. dollar and the Japanese yen; Gennum's ability to finance its growth plans and make necessary investment; and litigation in which Gennum is involved.
Inherent in forward-looking statements are risks and uncertainties beyond Gennum's ability to predict or control including, but not limited to, risks associated with: competitive and pricing pressures in the increasingly competitive environment in which Gennum operates; economic cycles in the semiconductor industry including downturns which can result from adverse general economic conditions; our ability to anticipate needs for future products and successfully execute our product roadmap and introduce and sell new products, including the possibility of the emergence of disruptive technologies which negatively impact our positioning in the marketplace; fluctuations in foreign exchange rates and their potential adverse impact upon our financial results; our reliance on external foundries and suppliers and the potential adverse effects of disruptions in any of these arrangements; the successful integration of acquisitions; our ability to attract and retain key personnel necessary for our business; our ability to successfully protect our intellectual property rights; and the initiation and outcome of legal proceedings. Readers should also refer to the sections entitled "Risks and Uncertainties" in our 2008 annual report and "Risk Factors" in our annual information form dated February 23, 2009, as well as to our other disclosures filed on SEDAR at www.sedar.com.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this document. Such statements are based on a number of assumptions which may prove to be incorrect including, but not limited to, the following assumptions: there is no material deterioration in the business and economic conditions in the marketplace for Gennum's products; Gennum's expectations regarding market trends for analog and mixed-signal products, optical products and intellectual property products and licensing are not materially incorrect; Gennum is able to execute its product roadmap without delays or disruptions having a material impact on Gennum; Gennum's expectations relating to the needs and direction of the marketplace for its products are within reasonable bounds of accuracy and Gennum is able to introduce and sell products and capitalize on new opportunities generally as expected; material disruptions in the manufacture and supply of products and services to Gennum by foundries and suppliers will not materialize; Gennum's expectations relating to competitive pressures, including pricing pressures, are not materially incorrect; significant fluctuations in foreign exchange rates which materially adversely affect Gennum's financial results do not arise; customer demand for Gennum's products remains generally as anticipated; Gennum is able to successfully integrate acquisitions; and Gennum is able to continue to retain and attract technical and other key employees.
Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause Gennum's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Consequently, readers should not place any undue reliance on these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. We disclaim any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.
SOURCE GENNUM CORPORATION
For further information: For further information: Gennum Media Contact: Keri Fraser, Gennum Corporation, (613) 697-6788, email@example.com; Gennum Investor Relations Contact: Gord Currie, Senior Vice-President, Finance & Administration and CFO, Gennum Corporation, (905) 632-2999 x3060, firstname.lastname@example.org