Enablence Technologies Inc.

Enablence Technologies Inc.

August 11, 2009 17:45 ET

Enablence Technologies Inc. Announces Year End Results for Fiscal Year Ending April 30, 2009: Revenues Grow 14-fold Over Prior Year

OTTAWA, CANADA--(Marketwire - Aug. 11, 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 fiscal year ended April 30, 2009.

Revenues for fiscal 2009 were $45.2 million compared to $3.2 million during fiscal year 2008. Enablence's total assets were $92.6 million, compared to $107.8 million at April 30, 2008. The Company's cash & short-term investments position was $11.6 million on April 30, 2009, compared to $47.2 million on April 30, 2008. Subsequent to April 30, 2009 the Company raised $13.8 million gross proceeds through a prospectus offering of common shares.

The net loss for fiscal 2009 was $76.8 million, of which $47.7 million comprised non-cash impairment charges in fiscal 2009. These charges were due to the write-down of intangible assets and goodwill. The Company's loss per share for fiscal 2009 was $0.40 compared to $0.08 during fiscal 2008.

The highlights during the past fiscal year were:

- The acquisition of Wave7 Optics and the creation of a new Systems Division to provide end-to-end solutions for FTTH

- The acquisition of DuPont Photonics Technologies , the addition of polymer Planar Lightwave Circuit (PLC) capability and the capability to supply sub-system products such as reconfigurable optical add/drop modules (ROADM)

- The acquisition of Pannaway Technologies, the addition of over 300 customers and the ability to provide a migration path for DSL to FTTH

- An increase in revenues to $45.2 million for FY 2009

- The announcement of several new contracts won in the U.S. and internationally based on the Company's product and technological strengths

- The substantial integration and consolidation of acquired operations, including the implementation of cost reductions contributing nearly $12 million annually

- The successful completion of a public offering in May 2009, raising gross proceeds of $13.8 million

"Enablence is pleased to report a successful year of growth in key aspects of the Company's business despite the current global economic crisis," said Arvind Chhatbar, CEO. "The acquisitions made during the year have placed the Company in a strong position to provide customers with a wide array of products to meet their needs. We will aim to continue to expand our geographic reach and customer base in the current fiscal year to take advantage of emerging opportunities for broadband growth worldwide. As we do this, our focus on improving our margins and controlling our costs will remain a top priority in order to achieve our profitability and cash flow objectives."

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
    Vice President, Finance