Enablence Technologies Inc.

Enablence Technologies Inc.

March 31, 2010 16:51 ET

Enablence Technologies Inc. Announces Results for Third Quarter Ending January 31, 2010

OTTAWA, CANADA--(Marketwire - March 31, 2010) - 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 third quarter of fiscal year 2010 ending January 31, 2010.

The highlights during the third quarter of fiscal 2010 were:

  • For the fourth consecutive quarter, a decrease in the operating loss, after adjusting for inventory write downs
  • Optical Components Division achieved a 48% increase in revenues compared to the previous year
  • New orders were announced during the quarter including those with Tutor for FTTH deployment in France and with an Alaskan Telecom;
  • New 10G photodiodes being developed for Light Peak project for Intel was also announced during the quarter.
  3 months ending   9 months ending  
  Jan 31 2010   Jan 31 2009   Jan 31 2010   Jan 31 2009  
Revenue $12,329   $14,790   $29,798   $31,189  
Operating loss ($8,419 ) ($10,388 ) ($23,567 ) ($27,034 )
Net loss ($10,391 ) ($49,450 ) ($23,943 ) ($64,014 )
Loss per share ($0.04 ) ($0.24 ) ($0.10 ) ($0.34 )
Net cash flows used in operating activities ($3,556 ) ($12,368 ) ($14,347 ) ($21,582 )

Revenues for the third quarter of fiscal 2010 decreased by 17% to $12.3 million from $14.8 million during the same period in fiscal 2009, and decreased by 17% from the second quarter of fiscal 2010. The net loss for the third quarter of fiscal 2010 increased to $10.4 million (of which $6.3 million comprised of non-cash charges, including a $1.7 million increase in its inventory valuation reserve and $4.4 million for impairment of intangible assets), compared to a net loss of $6.7 million (of which $2.7 million comprised of non-cash charges) in the previous quarter and from $49.5 million (of which $45.3 million comprised of non-cash charges) in third quarter fiscal 2009. The Company's loss per share for the third quarter fiscal 2010 was $0.04, compared to $0.03 in the previous quarter, and decreased from $0.24 during the same period in fiscal 2009, largely due to the $47.7 million write down of intangible assets and goodwill that was incurred during the third quarter of fiscal 2009.

Enablence's cash and cash equivalents were $7.5 million at the end of the quarter as compared to $11.4 million at the end of the previous quarter, representing a decrease of $3.9 million during the third quarter of fiscal 2010, reflecting the use of $3.6 million in operations compared to $2.8 million used in the previous quarter. The Company raised a total of $28.7 million in February 2010.

"Despite a drop of a little over $2 million in our revenues, due largely to delays in shipment resulting from supply chain issues, we were able to reduce our operating loss, after adjusting for inventory write downs, for the fourth consecutive quarter. We are anticipating that the delays in shipments experienced in the quarter will be recovered in our fiscal fourth quarter ending April 30, 2010. We will continue our efforts to grow revenues, improve margins and cut SG&A costs in order to reach positive cash flow performance as soon as we can," said Arvind Chhatbar, CEO of Enablence.

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