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Lyrtech announces its 2011 first quarter results

^{Published on 2011-07-04 06:50:40 - Market Wire}
 

QUEBEC CITY, July 4, 2011 /CNW Telbec/ - Lyrtech Inc. (Lyrtech or the Company) (TSXV: LTK), a leader in digital signal processing technologies, announced today its financial results for the first quarter ended March 31, 2011. The Company's consolidated financial statements and management report are available at [ www.sedar.com ].

2011 first-quarter highlights

• Revenues of $2.5 million
• EBITDA of $0.8 million
• Positive EPS

"The combination of strong demand in our three business verticals over the last year enabled us to reach profitability this quarter." stated Louis Bélanger, president and CEO of Lyrtech. "We can now focus on our most important short term goals which are achieving a more efficient capital structure and capitalizing on our OEM product lines from a sales perspective."

Financial review

During the first quarter of 2011, revenues reached $2.5 M, compared to $1.7 M over the same period in 2010, representing a significant increase of 49 %. This growth is the result of a stronger demand for the Company's products and services as well as the impact of revenue recognition related to important contracts in progress.

The gross margin reached 50 % of revenues during the first quarter of 2011, compared to 40 % over the same period in 2010. This increase is mainly due to the research and development nature of certain expenses related to specific contracts that results in lower cost of goods sold for these contracts.

Selling and marketing expenses reached $0.2 M during the first quarter of 2011, representing a small increase of $60 K compared to 2010.

Administrative expenses decreased by $0.1 M during the first quarter of 2011 compared to the same period in 2010. This variation results mainly from a decrease in rent expenses following a reduction of space in 2010.

Research and development expenses, net of tax credits, reached $50 K during the first quarter of 2011, a decrease of $100 K compared to the same period in 2010. This reduction results mainly from a higher number of activities being admissible for tax credits and capitalization of development work related to an important project.

Financial expenses reached $0.5 M during the first quarter of 2011, an increase of $0.3 M or over 200 % compared to the same period in 2010. This increase is related to specific additional factoring charges of $0.2 M linked to a particular customer contract.

The Company recorded gains on debt redemption of $0.1 M during the first quarter of 2011, compared to $0.3 M during the same period in 2010.

The net profit of the first quarter of 2011 was $0.3 M, or $0.007 per basic share ($0.005 on a fully diluted basis), compared to a profit of $0.1 M or $0.0032 ($0.002 on a fully diluted basis) over the same period in 2010.

The weighted average number of shares outstanding used to calculate the basic net earnings per share in 2010 was 36.8 million shares (55.0 million shares on a fully diluted basis).

As of June 30, 2011, Lyrtech had 40,997,634 Class A shares issued and paid, 15,077,445 warrants outstanding and 2,890,442 options outstanding for a total of 58,965,521 shares on a fully diluted basis.

Non-IFRS financial measure

The Company uses only one financial measure that is not consistent with international financial reporting standards (IFRS), namely earnings before interest, income taxes, depreciation and amortization (EBITDA). Such a measure is used because the management believes it provides meaningful information about the Company��s performance and operating results. Such a non-IFRS measure has no standardized meaning as prescribed by IFRS and may not be comparable to similarly titled measures presented by other companies. Accordingly, it should not be considered in isolation. Refer to conciliation table below:

Forward-looking statements

This news release contains certain forward-looking statements concerning the future performance of the Company's business, its operations and its financial results and condition. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us.

About Lyrtech

Lyrtech, a proud member of the Texas Instruments Design House Network, develops and manufactures advanced digital signal processing solutions for companies worldwide, a vital technology to network and wireless communications, audio and video processing, as well as electronic systems in all fields of technology. Lyrtech offers a full range of DSP-FPGA development platforms, as well as design, prototyping, and manufacturing of electronic products. Lyrtech works in partnership with industry leaders such as Texas Instruments, The MathWorks, and Xilinx. Lyrtech's customers include many prestigious names of the consumer electronics, telecommunications, aerospace, and defense fields.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.