Enablence Technologies Inc.
TSX VENTURE : ENA

Enablence Technologies Inc.

December 19, 2011 17:11 ET

Enablence Technologies Inc. Announces Results for the First Quarter Ending September 30, 2011

TORONTO, CANADA--(Marketwire - Dec. 19, 2011) - Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA), a leading supplier of optical components and subsystems for telecommunication access, metro and long-haul markets, and enterprise applications, announced today its financial results for its first quarter ending September 30, 2011. The results are unchanged from the Company's preliminary announcement, issued on December 12, 2011. All figures are in thousands of US dollars ("USD") and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise specified.

Highlights

The highlights during the quarter include:

  • Achieved revenue of $5.8 million, resulting in a loss from continuing operations of $(2.9) million and an Adjusted EBITDA (a non-GAAP measure defined below) loss of $(1.0) million;
  • Completed the sale of the majority of its US-based Systems business for cash consideration of up to $2.55 million; and
  • Completed the facility preparations in the joint venture in China.

Financial and Operating Results

The following chart highlights the key financial results for the periods indicated ($000's of USD, except per share data):

Three months ended
September 30 Change
2011 2010 $ %
Revenues $ 5,821 $ 8,117 $ (2,296 ) -28 %
Gross Margin 1,481 2,190 (709 ) -32 %
Gross Margin % 25.4 % 27.0 % -1.6 % 31 %
Net loss from Continuing Operations $ (2,870 ) $ (1,853 ) $ (1,017 ) -55 %
Loss from Discontinued Operations (2,611 ) (6,441 ) 3,830 59 %
Net loss $ (5,481 ) $ (8,294 ) $ 2,813 34 %
Basic & diluted loss per share
Continuing Operations $ (0.01 ) $ (0.00 ) $ (0.01 ) -100 %
Discontinued Operations (0.01 ) (0.02 ) 0.01 50 %
Adjusted EBITDA* $ (1,020 ) $ (393 ) $ (627 ) -160 %
* Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA comprises: Net loss excluding the following - loss from discontinued operations, finance income and expense, income tax recovery and expense, depreciation and amortization, asset impairment charges, foreign exchange gains and losses, stock-based compensation expense and restructuring charges A reconciliation of Adjusted EBITDA with Net loss is reported in the Company's Management Discussion & Analysis, filed today on sedar.com. Management uses Adjusted EBITDA as one measure to evaluate the performance of the continuing operations of the business.

"While we expect the December quarter to be down from the September quarter, we are starting to see some improved order activity. We expect to improve results when we introduce our 100G TOSA/ROSA chips (transmitter/receiver optical sub-assembly chips), launch the China JV and expand our addressable market into datacom and packaged photodiodes," said Chief Executive Officer, Tim Thorsteinson. "Our challenge continues to be the divestiture of the remaining Systems business, refinancing our notes payable and preserving as much cash as possible to fund our growth initiatives", he added.

The Company will host a conference call on Tuesday, December 20, 2011 between 9:00 a.m. and 10:00 am EDT. All interested parties should call (416) 340-8018 / 1-866-223-7781. Management will respond to questions from analysts on this call.

About Enablence Technologies Inc.

Enablence Technologies Inc. is a publicly traded company (TSX VENTURE: ENA) that designs, manufactures and sells optical components and subsystems to a global customer base. It utilizes its patented technologies including planar lightwave circuit ("PLC") intellectual property in the production of an array of photonics components and broadband subsystems that deliver a key portion of the infrastructure for next-generation telecommunication systems. The Company's product lines address all three segments of optical networks: Access, connecting homes and businesses to the network; Metro, communication rings within large cities; and Long-haul, linking cities and continents. For more information, visit www.enablence.com.

Forward-looking Statements

This press release may contain forward-looking statements, in particular with respect to the current and future revenue, the strategic alternatives and divestiture of the Systems segment, the expectations of the joint venture in China and the revenue, margins, profitability and future growth of the continuing operations (including the joint venture) that are made 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.

Contact Information

  • Enablence Technologies Inc.
    Tim Thorsteinson
    Chief Executive Officer
    +1 (647) 729-1605