5.5.2006: Meldung: Xantrex Technology Inc. Reports Q1 2006 Results

Xantrex Technology Inc. reported financial results for the first quarter ended March 31, 2006. All currency amounts are reported in US dollars unless otherwise indicated, and financial results are reported in accordance with accounting principles generally accepted in Canada.

For the first quarter of 2006, revenue was $34.7 million and cash flow from operations was $8.6 million, an improvement from $33.4 million and negative $2.8 million, respectively, for the year-ago quarter. Net income was $705,000, or $0.02 per diluted share, compared with $1.5 million, or $0.05 per diluted share for the same quarter last year.

"Xantrex returned to profitability this quarter and our results improved over the third and fourth quarter of 2005, because we have been engaged in an intense program of internal improvements since the second half of 2005 to improve the execution of our strategy and our financial performance" said Mossadiq S. Umedaly, Chairman of Xantrex. "In that program, we are focusing our sales and product development resources towards our growth markets and have begun to improve our operating performance through process, efficiency and quality improvements. Although we expect financial benefits from these improvements to become more evident in the second half of this year and into next year, there were some early signs in the first quarter indicating that we are heading in the right direction."

Mr. John Wallace, Xantrex"s CEO commented, "While improving our operating performance is one of our highest priorities, so is the delivery of superior products and quality service that customers expect from Xantrex. We have an aggressive new product development program focused on our growth markets. On the revenue side, Renewable Power, up 30% from the year ago quarter, benefited from recent contract wins and improved supply chain management. In contrast, as expected, Mobile Power revenue, which beginning this quarter does not include Portable Power, was up 2%, reflecting market conditions in recreational vehicles and marine craft. Portable Power revenues were down, primarily attributable to one large order which shipped early in the second quarter rather than late in the first. Programmable Power, up 13%, reflected strength in capital spending by electronics manufacturers. Gross margin as a percentage of revenue was below that of the year-ago quarter, but was significantly higher than that of the third and fourth quarter of 2005. On the expense side, operating expenses held fairly steady compared with the year ago quarter despite the appreciation of the Canadian dollar. Lastly, cash flow from operations for the first quarter rebounded sharply from the sequential and year ago quarters, primarily because we were able to reduce inventories and accounts receivables."

Mr. Wallace continued, "On the new product front we launched seven new products this quarter. Key product launches included:

- European commercial solar grid-tie product line with a 250kW inverter
- Production model of the 2.5MW wind converter for Clipper"s new Liberty
wind turbine
- PowerSource 400, an innovative back-up power system for small office
and home markets, which generated strong retailer orders
- RM1024 weatherproof inverter/charger for JLG the world"s largest
manufacturer of aerial lifts"

Mr. Umedaly concluded, "During the first quarter, renewable energy attracted increasing interest as oil prices resumed an upward swing from already lofty levels, and natural gas prices remained at historically high levels; energy security concerns remained high; and unusual weather patterns raised further public concern about environmental issues. Actions taken to encourage the use of solar energy by California, Ontario, the US government, Korea and Italy will accelerate market demand for renewable power which in turn will create more opportunities for Xantrex. In closing, our outlook remains the same as described in our year end report. We expect that the key initiatives we started in the second half of 2005 will provide the foundation for improved growth and profitability in 2006, particularly in the second half of the year and beyond."

Financial Highlights
(Expressed in US dollars)
Three months ended March 31
2006 2005 change
Revenue $34,655,000 $33,356,000 4%
Income for the period $705,000 $1,481,000 -52%
Earnings per share (fully diluted) $0.02 $0.05 -60%
Fully diluted avg. shares outstanding 29,922,185 30,612,158 -2%

Note: On March 31, 2006, the Bank of Canada"s exchange rate for one
Canadian dollar was $0.86 compared with $0.83 on March 31, 2005.

The complete first quarter of 2006 Management"s Discussion and Analysis and Financial Statements for Xantrex Technology Inc. are available on the Xantrex web site www.xantrex.com.

Cautionary Note on Forward-looking Information

Some of the statements contained in this report are forward-looking statements. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results, including Xantrex"s growth rate, could differ materially from those currently anticipated in forward looking statements, based on regional and global economic growth, electricity supply and demand, government regulations and incentives, technological advances by Xantrex and others, our ability to execute on our plans, and other factors, including those discussed in the our 2005 Annual "Management"s Discussion and Analysis". Readers should not place undue reliance on Xantrex"s forward-looking statements.

Conference Call

Xantrex Technology Inc. has scheduled a conference call for May 3, 2006 at 6:00 am Pacific Time (9:00 am Eastern Time) to discuss the first quarter 2006 financial results. To access the conference call by telephone, please call 416-644-3414 (Toronto area code) or 604-677-8677 (Vancouver area code). Alternatively, the audio webcast of the conference call can be accessed through the Xantrex web site at www.xantrex.com by following the link on the investors menu. Audio replays will be available on the web shortly after the conclusion of the conference call.

About Xantrex

Xantrex Technology Inc. (www.xantrex.com) is a world leader in the development, manufacturing and marketing of advanced power electronic products and systems for the renewable, portable, mobile, and programmable power markets. The company"s products convert and control raw electrical power from any central, distributed, or backup power source into high-quality power required by electronic and electrical equipment. Headquartered in Vancouver, British Columbia, the company has facilities in Arlington, Washington; Livermore, California; Elkhart, Indiana; Barcelona, Spain; and Reading, England. Xantrex is publicly listed on the Toronto Stock Exchange under the ticker symbol "XTX".

For further information, please contact Donna Clark
Phone: 604-422-2601
Email: donna.clark@xantrex.com

Source: Xantrex Technology Inc.
Aktuell, seriös und kostenlos: Der ECOreporter-Newsletter. Seit 1999.
Nach oben scrollen
ECOreporter Journalistenpreise