Vancouver, BC, June 23, 2011--(T-Net)--Icron Technologies Corporation (TSXV: IT), a global leader in the design and manufacturing of high-performance USB and video extension solutions today announced the financial results for the first quarter ending March 31, 2011.
Highlights for Q1 2011:
- Record Q1 revenues of $3,401,134 representing an 47.4% increase over Q1 2010; excluding the impact of foreign exchange, revenues increased by 55.2%, revenues increased by 1.2% over Q4 2010;
- Gross margin was 57.2%, a 750 basis point increase from 49.7% in Q1 2010 and a 100 basis point improvement from 56.2% in Q4 of 2010;
- Achieved net income for Q1 2011 of $468,780 compared to a net loss of $238,185 in the same period of 2010 and a net income of $528,124 in the fourth quarter of 2010;
- Cash and investments totaled $2,867,452 at March 31, 2011; an increase of $361,213 when compared with the $2,506,239 as of December 31, 2010. Working capital increased by $533,143 to $5,766,485 in Q1 2011 when compared to the $5,233,342 reported as of December 31, 2010;
- Icron and Intersil demonstrated the industry's first 20-Meter USB 3.0 extension cable at CES 2011; a jointly-developed cable designed for home connectivity, digital signage, medical imaging and industrial automation applications;
- Launched the ExtremeLink™ 4500 KVM (keyboard, video, mouse) extender to OEMs in North and South America, Europe and Asia for remote desktop applications in the industrial automation, medical imaging, pro-audio/visual, digital signage and small business markets.
"We are pleased with our financial performance for the quarter which resulted in solid revenues, profitability and gross margins", said Robert Haefling, Icron President and CEO.
Revenue for the three months ended March 31, 2011 was $3.401 million, an increase of $1.094 million or 47.4% over the same period of the prior year and an increase of $40 thousand or 1.2% compared to Q4 of 2010. Excluding the impact of foreign exchange, revenues for the first quarter of 2011 increased by 55.2% over the prior year and 4.1% over the prior quarter.
As a result of the discontinuation of some components by our vendors the Company was required to end of life (EOL) our legacy USB Ranger 1.1 product family. Consequently, several last time buy orders were received in the fourth quarter of 2010 and into the first quarter of 2011. A total of $553 thousand was shipped in the first quarter compared to the $567 thousand which was shipped during the fourth quarter of 2010. The Company anticipates shipping the remaining $347 thousand of discontinued product during the second quarter of 2011. Sales of the Rover product line decreased by 40.4% during the first quarter to $326 thousand compared to $547 thousand in the first quarter of 2010 and $638 thousand in the fourth quarter of 2010. While sales of the legacy 1.1 products were strong, customers continue to transition over to next generation USB 2.0 product lines which provide the customer with twice the distance of legacy USB 2.0 products, at USB 1.1 prices. The next generation 2.0 products generated combined sales of $1.949 million during the first quarter which is a 104.9% increase over the $951 thousand recorded in the first quarter of 2010 and accounted for 57.3% of all revenue during the quarter.
Sales in the United States, Europe, and Asia were up in the first quarter 79.0%, 21.3% and 225.5% respectively, while sales in Canada decreased by 15.0%. The growth was aided by the sale of discontinued USB 1.1 product sales as well increased sales of our USB 2.0 products. Sales in Canada were down as one of our key customers had a slow quarter but we see improvements in the second quarter.
Gross margin amounted to $1.946 million in the first quarter of 2011, compared to $1.146 million in the first quarter of 2010. Our gross margin percentage increased to 57.2% for the three months ended March 31, 2011, compared to 49.7% in the same period of 2010 and 56.2% in the fourth quarter of 2010. The increase in gross margin versus the previous year is attributable to larger revenue mix of high margin products utilizing Icron's developed ASIC. In addition, a majority of production has transitioned to contract manufacturers in Asia allowing the Company to further increase margins. We do anticipate a larger portion of the revenue to be of lower margin KVM products which have started to ship in the first half of 2011.
Our net income for the first quarter amounted to $469 thousand, or $0.02 per share, in the three months ended March 31, 2011, compared to a net loss of $238 thousand, or $(0.01) per share, in the same period of 2010.
About Icron Technologies Corporation
Icron Technologies (TSX-V:IT) is an innovative leader in the development and manufacturing of high-performance video and USB extension solutions for commercial and industrial markets worldwide. Icron's patented extension technology extends PC Video and USB devices over many media types including Cat 5, Fiber, Wireless, DisplayPort, Coax, Powerline, and over a corporate LAN. Icron's extension products are deployed in a wide range of applications such as digital home connectivity, industrial automation, medical imaging, aerospace, interactive digital signage, remote desktop extension, security and surveillance, enterprise computing, isolated USB, and point-of-sale markets, or anywhere where a PC needs to be remotely located from a display or peripheral device.
Icron is a publicly traded corporation and trades under the symbol "IT" on the TSX Venture Exchange. For more information on the company and its products, please visit http://www.icron.com.
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FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release?including, without limitation, statements regarding financial estimates and future plans and objectives of Icron?are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
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Photo credit: Icron Technologies