Enablence Technologies Inc.

Enablence Technologies Inc.

December 16, 2009 18:04 ET

Enablence Technologies Inc. Announces Results for Second Quarter Ending October 31, 2009: Revenues Up, Operating Cash Burn Reduced

OTTAWA, CANADA--(Marketwire - Dec. 16, 2009) - Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA), a leading supplier of fiber-to-the-home (FTTH) equipment for triple-play residential and business services and optical components and subsystems for access, metro and long-haul markets, announced today financial results for the second quarter of fiscal year 2010 ending October 31, 2009.

FQ2-10 FQ1-10 FQ2-09
Revenue $14,883 $12,586 $8,765
Operating loss $7,065 $8,082 $9,068
Net loss $6,669 $6,883 $7,721
EPS ($0.03) ($0.03) ($0.04)

Revenues for the second quarter of fiscal 2010 increased by 70% to $14.9 million from $8.8 million during the same period in fiscal 2009, and increased by 18% from the first quarter of fiscal 2010. The net loss for the second quarter of fiscal 2010 decreased to $6.7 million (of which $2.7 million comprised of non-cash charges) compared to a net loss of $6.9 million (of which $1.4 million comprised of non-cash charges) in the previous quarter and from $7.7 million (of which $2.8 million comprised of non-cash charges) in second quarter fiscal 2009. The Company's loss per share for the second quarter fiscal 2010 was $0.03, as in the previous quarter, and decreased from $0.04 during the same period in fiscal 2009.

Enablence's cash and cash equivalents were $11.3 million at the end of the quarter as compared to $15 million at the end of the previous quarter, representing a decrease of $3.7 million in FQ2/10 and reflecting the use of $2.8 million in operations compared to $8.0 million used in the previous quarter.

The highlights during the second quarter of fiscal 2010 were:

- Record revenues of $14.9 million

- Reduction in operating expenses by 12%

- Reduction in cash used in operations to $2.8 million from $8.0 million in the previous quarter

"We are pleased with the growth in revenues this quarter which, coupled with cost reductions and improved management processes, has resulted in a substantial reduction of the cash used in operations from an $8 million outflow in the first quarter to less than $3 million outflow in the second quarter." said Arvind Chhatbar, CEO of Enablence. "In order to achieve our targets for cash flows and earnings in the coming quarters, we are continuing our extensive efforts at lowering costs and expenses through further consolidation, integration and streamlining our operations while we continue to grow."

About Enablence Technologies Inc.

Enablence Technologies Inc., (TSX VENTURE:ENA) a publicly traded company headquartered in Ottawa, Canada, designs, manufactures and sells optical components, subsystems and systems to a global customer base.

Enablence's Systems Division has an expanding fiber-to-the-premise (FTTP) product portfolio featuring a variety of architectural options. It enables service providers to evolve their access networks from traditional copper-based networks to advanced optical communications access networks that are based on state-of-the-art IP and Ethernet standards, for triple-play voice, video and data services including HDTV, IP Telephony and ultrafast internet access. The Division's network equipment has been deployed with 420 service providers worldwide that serve over 4 million subscribers.

Enablence's Optical Components and Subsystems Division is a global leader in applying Planar Lightwave Circuit (PLC) technology to integrate multiple components into a single optical chip to reduce footprint and costs. Network and equipment designers around the world turn to Enablence for a variety of components and subsystems for access, metro and long-haul including transceivers, splitters, waveguides, optical channel monitors, multiplexers, ROADMs, switches, tunable dispersion compensators, and photodiodes. The Division serves over 120 system and subsystem developers and its products have been integrated in all major communications networks worldwide, serving tens of millions of subscribers.

Forward-looking Statements

This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's continuous disclosure documents that can be found on SEDAR www.sedar.com. Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward looking statements whether as a result of new information, future events or otherwise.

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.

Contact Information

  • Enablence Technologies Inc.
    Ron Benn
    Chief Financial Officer