QUEBEC CITY, Aug. 31 /CNW Telbec/ - Lyrtech Inc. (Lyrtech or the Company)
(TSX-V: LTK), a firm specializing in digital signal processing technologies,
announces today its results for the three and six-month periods ending June
2009 second quarter highlights
- Improvement in the gross margin ratio resulting from tighter controls
and a focus on projects of higher value.
- Profit before financial charges and amortization of $0.2 M.
- Completed development of ODM end-products in the wireless and vision
- Second quarter sales were affected by the global economy slowdown,
resulting in the postponement of some major projects.
- Implementation of a temporary reduction of 25 % in the payroll and 10 %
in manager wages.
"This first semester of 2009 has been challenging in the aftermath of the
Innovator disposal, the resulting balance sheet, and global economy slowdown.
We are maximising our resources on the projects generating the highest
returns. Many projects were postponed rather than cancelled; there are signs
that our clients are working towards catching up on their delays, which should
generate positive results for Lyrtech in the coming months", declared Louis N.
Bélanger, president and CEO of Lyrtech.
During the second quarter of 2009, total revenues from continuing
operations reached $1.9 M, compared to $2.7 M during the same period in 2008,
representing a decrease of 31 %. During the first semester of 2009, total
revenues from continuing operations reached $3.8 M, compared to $4.8 M at the
same period in 2008. The decrease in revenues is a result of the global
economy slowdown; more specifically, some projects with major customers were
The gross margin from continuing operations reached 52 % of revenues
during the second quarter of 2009 from 41 % during the same period in 2008, an
important improvement following a very tight management of resources to
maximize return. The margin reached 47 % of revenues during the first semester
of 2009 from 44 % during the same period in 2008.
Selling and marketing expenses from continuing operations decreased by 49
% to $0.15 M during the second quarter of 2009, compared to the same period in
2008. They decreased by 34 % to $0.35 M during the first semester of 2009,
compared to the same period in 2008. These decreases are mainly attributable
to salary savings following the departures of three employees.
Administrative expenses from continuing operations totalled $0.35 M
during the second quarter of 2009, an increase of $0.2 M during the same
period in 2008. This is mainly the result of an increased use of legal
professionals. Administrative expenses from continuing operations totalled
$0.65 M during the first semester of 2009, a decrease of $0.1 M from the same
period in 2008.
Research and development expenses, net of tax credits, reached $0.3 M
during the second quarter of 2009, an increase of 30 % compared to the same
period in 2008. These expenses reached $0.6 M during the first semester of
2009, an increase of 23 %, or $0.1 M, compared to the same period in 2008.
Although the Company applied restrictions in development activities and wages,
it witnessed an increase in the volume of work admissible to R&D tax credits,
following tighter management control focusing on a favourable mix of the use
Lyrtech recorded a profit of $0.15 M, before financial charges and
amortization during the second quarter of 2009 and $0.2 M during the first
semester of 2009.
Financial expenses from continuing operations reached $0.5 M during the
second quarter of 2009, an increase of $0.2 M from to the same period in 2008.
They reached $0.8 M during the first semester of 2009, an increase of $0.4 M
from to the same period in 2008. These increases are mainly the result of
higher exchange losses in 2009, compared to minimal losses in 2008.
The net loss for the second quarter of 2009 was $0.3 M, or $0.0116 per
basic and diluted share, compared to a net profit of $0.06 M, or $0.0023 per
basic and diluted share, during the same period in 2008.
The Corporation had a negative working capital of $4.9 M on June 30,
2009, a non-material variation from December 31, 2008.
The holders of the Lyrtech convertible debentures issued on January 21,
2008, wil issue new convertible debentures for a sum equivalent to the
principal amount and the accrued interest on these convertible debentures
matured January 21, 2009, amounting to $550,000. These new convertible
debentures wil have a one-year term following their issue and a conversion
price of $0.07 per share. The issue of said convertible debentures is
conditional to the approval of regulatory agencies.
Lyrtech announces its intent to complete a convertible debenture
financing of $750,000. This convertible debenture wil have a one-year term,
bearing an annual interest rate of 10 %, and will be convertible to Lyrtech
common shares at $0.07 per share. The issue of said convertible debenture is
conditional to the approval of regulatory authorities. The proceeds of this
placement wil be used as working capital.
As of August 28, 2009, Lyrtech had 24,673,255 class A shares issued and
paid, 16,137,283 warrants outstanding and 1,995,243 options outstanding for a
total of 42,806,318 shares on a fully diluted basis following a share
consolidation on September 17, 2008 on a basis of ten old shares for one new
share and prior to shares issued in this financing.
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.
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 wel 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
For further information:
For further information: Louis N. Bélanger, president and CEO Lyrtech
Inc., (418) 877-4644, firstname.lastname@example.org