BURNABY, BC, Aug. 10 /CNW/ - Icron Technologies Corporation (TSX Venture: IT), the developers of ExtremeUSB(R), today released financial results for the second quarter ending June 30, 2010.
Highlights for Q2 2010:
- Q2 revenues of $2,072,591 representing a 22.1% decrease over Q2 2009;
excluding the impact of foreign exchange, revenues decreased by
- Gross margin was 53.2 percent, a 50 basis point increase from 52.7
percent in the second quarter of 2009 and a 190 basis point
improvement from 51.3 percent in the first quarter of 2010.
- Recorded a net loss for Q2 2010 of $218,863 compared to a net profit
of $7,066 in the same period of 2009 and a net loss of $231,218 in
the first quarter of 2010;
- Cash and investments totaled $2.33 million at June 30, 2010,flat when
compared with $2.33 million at March 31, 2010. The companygenerated
$42 thousand in cash from operations.
- Launched its new ExtremeLink(TM) family of KVM (keyboard, video,
mouse) extenders that combine high quality HD video and USB 2.0
peripheral support for remote desktop applications within the office,
factory floor, hospital or retail/commercial environment;
- Awarded 2010 Technology Impact Award for Most Promising Pre-
Commercial Technology by BCTIA for its USB over DisplayPort
technology for desktop and mobile computing
- Announced the appointment of Bay Technologies as Icron's official
sales agent in Japan, and the launch of its Japanese language website
http://www.icron.jp/ to support its growing base of global customers.
"While revenue did decline quarter over quarter, the company did increase gross margins and reduced operating expenses compared to recent quarters," said Mr. Haefling, Icron President and CEO. "We remain confident in the growth prospects for Icron. We expect continued margin improvement and revenue from new products and our order flow is strong for the third quarter. We believe our business model efficiencies and strong customer relationships will continue to drive Icron's growth strategy."
Revenue amounted to $2,072,591 for the three months ended June 30, 2010, compared to $2,661,768 in the same period of 2009, a decrease of 22.1%. Excluding the impact of foreign exchange, revenues decreased by 12.2% and had we been able to ship the $200,000 worth of backlogged products revenues in U.S. dollars would have only been down roughly $80,000 or 3.5%.
Our next generation 2.0 products generated combined sales of $1.25 million during the second quarter which is a 29.9% increase over the $962 thousand recorded in the second quarter of 2009 and accounted for 60.0% of all revenue during the quarter.
Sales in the second quarter for Canada, United States, and Europe were down 47.0%, 16.9% and 29.8% respectively. Canadian sales would have been significantly higher had we not experienced the component shortages. These component issues have been resolved, we have strong backlog to date and expect to have third quarter revenues in a range of $2.7-$2.9 million.
Gross margin amounted to $1,102,038 in the second quarter of 2010, compared to $1,402,772 in the second quarter of 2009. Our gross margin percentage increased to 53.2% for the three months ended June 30, 2010, compared to 52.7% in the same period of 2009. The increase in gross margin versus the previous year is attributable to larger revenue mix of high margin products utilizing Icron's developed ASIC. We expect margins to continue to improve in the second half of 2010 as we begin production of additional high volume products in Asia.
Our net loss for the second quarter amounted to $218,863 or $0.01 per share, compared to net profit of $7,066, or $0.00, in the same period of 2009.
For complete financials please visit www.sedar.com or www.icron.com.
Conference Call / Web-cast:
August 10th, 2010, 4:30 PM ET, 1:30 PM PT
To participate in the live conference call, please call 1 (647) 427 - 7450 or 1 (888) 231 - 8191
The conference will also be broadcast live over the Internet and archived through the following link:
For further information, please contact:
Icron President and CEO
About Icron Technologies Corp.
Icron Technologies (TSX-V:IT) is a global leader in the design and manufacturing of high-performance PC Video and USB extension solutions for commercial, medical and industrial markets. Icron's patented ExtremeUSB(R) technology extends the range of any USB peripheral device over Cat 5, Wireless, Fiber and Powerline, at distances up to 25 miles (40km). Icron's extension products are deployed in a wide range of applications including: digital home connectivity, industrial automation, medical imaging, aerospace, and KVM extension. Icron's ExtremeUSB(R) technology is available in a variety of formats including branded and private-label products, OEM modules, and Integrated Circuits.
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 http://www.icron.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
SOURCE ICRON TECHNOLOGIES CORPORATION
For further information: For further information: Robert Haefling, Icron President and CEO, 604-638-3924, email@example.com