TORONTO, Dec. 2 /CNW/ - Luxell Technologies Inc. (TSX:LUX), a leading provider of electronic displays to the defense and aerospace industries, announced today its preliminary financial results for the fourth quarter and fiscal year ended August 31, 2008. All amounts are reported in Canadian currency unless otherwise stated.
Highlights for the Fourth Quarter of 2008
- Revenues were $1.7 million, up 25% from $1.3 million for the same
period in 2007.
- EBITDA(1) (earnings before interest, taxes, depreciation and
amortization) was $300,000.
- Net income was $717,000, representing the Company's first-ever
positive result. This compared to a loss of $1.5 million for the
fourth quarter of 2007.
- Signed an agreement with Symbolic Displays Inc. to develop a number
of customized flat panel displays for a U.S. defense industry client.
- Received a supplemental order for a multi-function display unit from
Rheinmetall Defense Electronics that will be used by a Europe-based
defense industry client.
- Granted a U.S. patent for its efforts at reducing sunlight
reflections off of onboard flat panel displays while improving
readability.
- Reached a record production of maintenance display units for Indra
Sistemas in August.
Highlights for Fiscal 2008
- Revenues were $5.0 million, an increase of 35% from $3.7 million
generated for 2007.
- EBITDA was a loss of $1.3 million.
- Net loss was $1.6 million compared to a net loss of $4.3 million for
2007.
- Appointed Jean-Louis Larmor as President and CEO effective October
22, 2007.
- Raised approximately $6.2 million in gross proceeds through a non-
brokered private placement which resulted in the issuance of common
shares and warrants.
- Converted approximately $300,000 of debt owed to capital lenders
into equity in the Company through the issuance of common shares.
- Signed a number of marketing partnership agreements with leading
providers of systems and technology to the defense and aerospace
sectors, including Symbolic Displays Inc., VECTr Systems, and IRTS.
- Appointed Lt. Col. (retired) Gerrard Hartley as Vice President of
Business Development.
- Renewed its ISO 9000:2000 and AS 91000 Quality Management Systems
Standard certifications.
- Converted a promissory note valued at approximately $1.4 million into
approximately 3.5 million common shares.
- Awarded an agreement to supply a cockpit controls interface kit for
the WheelTug System.
Highlights Subsequent to Quarter End
- Appointed Pierre J. Jeanniot as Chairman of the Company's Board of
Directors.
- Received a repeat order for its 3ATI displays from a defense industry
client valued at approximately $160,000.
- Completed delivery of an order totaling 115 large displays to a major
defense industry systems integrator.
- Launched new after-sales services in support of its Eurofighter
program commitments.
- Reached an important payment milestone by successfully completing the
design review stage of a program aimed at retrofitting one of its
rugged displays for military use.
- Launched new custom crystal display services designed to address
growing market opportunities for unique sizing of LCD glass.
- Completed a series of trade show and marketing events designed to
showcase the Company's products and build a sales pipeline.
"Over the past year, we have made a number of significant steps to strengthen our Company," said Jean-Louis Larmor, President and CEO of Luxell Inc. "By restructuring our debt, partnering with leading systems integrators and commercializing our research and development efforts, we are beginning to take advantage of emerging opportunities in the defense and aerospace industries for our rugged displays as evidenced by our recent performance."
Financial Results
For the fourth quarter ended August 31, 2008, Luxell generated revenues of $1.7 million, an increase of 25% from $1.3 million for the fourth quarter of 2007. The higher revenue is attributable to increased sales of the Company's rugged displays to clients in the defence and aerospace industries.
The Company reported net income for the fourth quarter of $717,000 or $0.01 per basic share. This compares to a net loss of $1.5 million or $0.03 per basic share for the same period of 2007. The year-over-year improvement of $2.2 million was attributable to higher sales of the Company's rugged displays as well as reduced operating expenses stemming from the elimination of costs associated with restructuring of the business incurred in the prior year.
For the 2008 Fiscal year, Luxell reported consolidated revenues of $5.0 million, up from $3.7 million for 2007.
Luxell reported a net loss for 2008 of $1.6 million. This compares to a net loss of $6.3 million for 2007.
Luxell will file its consolidated financial statements for the fourth quarter and year-end fiscal 2008 as well as related management discussion and analysis with securities regulatory authorities within the applicable timelines. The material will be available through SEDAR at www.sedar.com and the Company's website, www.luxell.com.
About Luxell
Luxell designs, manufactures and licenses flat panel display technologies and solutions for the defense and aerospace industries. More information can be found at www.luxell.com. Luxell Technologies Inc., Luxell and Black Layer are trademarks of Luxell Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.
Forward-Looking Statements
This news release contains certain "forward-looking statements" that reflect the current views and/or expectations of Luxell Technologies Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
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(1) EBITDA is not a recognized measure under Canadian generally accepted
accounting principles, however, management believes that it is a
useful performance measure as it approximates cash generated from
operations, before capital expenditures and changes in working
capital and excludes unusual items.
%SEDAR: 00008266E