../Morning Post
Posted October 30, 2009

DALSA Reports Third Quarter 2009 Financial Results

Waterloo - DALSA Corporation, an international leader in high performance digital imaging and semiconductors, reported revenues from continuing operations of $41.0 million for the quarter ended September 30, 2009 and $0.1 million in earnings or $0.00 per share from continuing operations. The following table summarizes the key results for the third quarter of 2009 and compares them to the third quarter of 2008.

"As anticipated, revenue improved marginally from the second quarter while earnings from continuing operations remained flat, both in spite of the sharp appreciation in the Canadian dollar during the quarter. We saw our business outlook begin to improve as customers, particularly in the Asia Pacific region of our Digital Imaging business, started to order products for shipment in the fourth quarter and into 2010," commented Brian Doody, Chief Executive Officer of DALSA. "Beginning in September and subsequent to the end of the quarter we saw a rise in bookings in our Digital Imaging business with an increasing proportion of these orders for delivery in the short term, both of which are strong indicators for improved results in the coming quarters."

In the Digital Imaging business, revenue in the third quarter was $21.5 million, with a net income of $0.2 million, compared to revenue of $31.1 million and net income of $4.5 million in the third quarter last year. On a quarter over quarter basis, Digital Imaging revenue increased 3.9% from Q2 2009. The Digital Imaging business exited the third quarter with a backlog of $29.6 million, which although down from the end of the second quarter (due largely to revaluation of orders caused by a further appreciation of the Canadian dollar) is up slightly from the same quarter last year. Furthermore, new bookings late in the quarter and subsequent to the end of the quarter have strengthened, demonstrating renewed demand for our Digital Imaging products.

In the Semiconductor Business, we reported revenue of $19.5 million in the quarter and a net loss of $0.1 million, compared to revenue of $21.6 million and net income of $1.5 million in the third quarter last year. On a quarter over quarter basis, Semiconductor revenue remained flat while a quarterly change in product mix resulted in a small change in profitability. Shipments of MEMS wafers continue to be strong. For the first nine months of 2009, MEMS revenue has increased 28% over the same period last year. This places DALSA among the fastest growing and highest revenue "pure play" MEMS foundries in the world. Our 200mm MEMS expansion at Bromont, which will help satisfy the high level of demand we are seeing for MEMS wafer processing, continues to progress well. In the third quarter, several pieces of 200mm MEMS equipment were installed and commissioned, which will allow us to deliver our first customer samples in the fourth quarter. In parallel, we continued to move product from our 100mm wafer fabrication line, as we work towards ultimately closing this line. This planned closure will allow us to provide more cost efficient processing on our 150mm line, and provide room for the aforementioned 200mm MEMS expansion. As the 100mm line utilization continues to decline prior to closure, margins remain under pressure due to the volume-independent fixed costs; however, ultimate closure of the 100mm line is also expected to translate into an improvement in gross margins.

Overall standard product gross margins from continuing operations for the quarter were 32.4%, roughly flat from the second quarter of 2009. Although below our business model, due to depressed revenues in the quarter, these margins were within the range of our expectations. The Company's cash position improved by $1.5 million to $11.4 million from the second quarter of 2009. Cash provided by continuing operations was $3.8 million, up $0.1 million from the same quarter last year. Management believes that cash on hand, existing bank facilities and cash flow from operating activities will be sufficient to fund currently anticipated working capital, planned capital spending, new business initiatives and debt service requirements for the next twelve months.

Submit press release to pressrelease@exchangemagazine.com - Editor Jon Rohr - Content published on this site represents the opinion of the individual/organization and/or source provider of the Content. ExchangeMagazine.com is non-partisan, online journal. Privacy Policy. Copyright of Exchange produced editorial is the copyright of Exchange Business Communications Inc. 2009/*.*. Additional editorials, comments and releases are copyright of respective source(s) and/or institutions or organizations.


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