Enablence Technologies Inc.

Enablence Technologies Inc.

August 26, 2010 17:00 ET

Enablence Technologies Inc. Announces Results for the Two Months Ended June 30, 2010

OTTAWA, CANADA--(Marketwire - Aug. 26, 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 two months ending June 30, 2010.

($000, except EPS) Two Months June 30, 2010   Three Month July 31, 2009  
Revenue $9,798   $12,586  
Operating loss 4,285   8,082  
Net loss 3,308   6,883  
E.P.S. $(0.01 ) $(0.03 )
Operating cash flows(1) $(2,893 ) $(5,530 )
1. Operating Cash Flows in a non-GAAP measure of the cash generated from or used in operating by adding back to the Net Cash from (used in) Operations for all non-cash expenses including amortization, stock-based compensation, unrealized foreign exchange gains and losses, changes to future tax recoveries and changes to inventory valuation allowances.  

On July 25, 2010 the Company changed its 2011 year end from April 30 to June 30. The current fiscal year will cover the 14 months from May 1, 2010 to June 30, 2011. Enablence will report its results for the two months ended June 30, 2010 and the four quarters ending September 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011. 

The results of operations for the two months of the current fiscal period are not comparable to the results of operations for the three months ended July 31, 2009. Revenues are not earned evenly through the quarter, while most of the operating expenses are. As is the case with many companies, the third month of each quarter generally has significantly higher revenue than either of the first two months of a quarter. Cost of revenues is not incurred in an even manner throughout the quarter, as significant elements of the cost of revenues, such as materials and cost of contract manufacturing, vary with revenues. The results of operating reflect the performance of Teledata Networks Ltd. ("Teledata") for the week following its acquisition on June 23, 2010.

Enablence's cash and cash equivalents were $6.9 million at June 30, 2010 as compared to $23.4 million at April 30, 2010. This net decrease of $16.5 million was the result investing $10.7 million for the cash portion of the acquisition of Teledata (less $1.5 million of cash in Teledata at the date of acquisition), $3.9 million of restricted cash to secure Teledata's operating loans, and $2.9 million used to fund the operating loss for the period.

"This two month period represents the transition from the Enablence business that preceded the acquisition of Teledata to the business including Teledata's customer base and products effective June 23, 2010. Our focus is now on integrating and growing the combined business profitably," said Tim Thorsteinson, Chief Executive Officer.

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) and xDSL 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.

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.
    Tim Thorsteinson
    Chief Executive Officer