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Enablence Technologies Inc. Announces Third Quarter Fiscal 2024 Financial Results
Ottawa, Ontario–(Newsfile Corp. – May 28, 2024) – Enablence Technologies Inc.Qualification” or the “Company“), a leading supplier of optical chips and subsystems for data communications, telecommunications, automotive and artificial intelligence (AI) applications, has filed its unaudited financial statements for the three months ended March 31, 2024 (“3rd quarter of 2024“) and related management discussion, analysis and certifications (collectively, the “Financial statements“). Electronic copies of the Financial Statements are available on SEDAR (www.sedarplus.ca) in the Enablence issuer profile.
“The quarter just ended marks a turning point for the optoelectronics industry and Enablence as it returns to pre-crisis levels,” said Todd Haugen, CEO of Enablence Technologies. “In the quarter just ended, the significant investments we made in research and development, and operationally, specifically around new advanced tools and engineering processes, are accelerating customer acquisition and product launches, such as the recent FR4 family for data high speed transmission in data communications.”
“Our investments are supporting a growing pipeline in data communications, but also in important strategic products such as advanced vision and artificial intelligence product lines,” said Haugen. “Our strategic products continue to show rapid growth, representing more than 34% of sales in the quarter just ended, and we expect this to accelerate materially in the future,” Haugen added. “Our Datacom business also continues to benefit from the constant launch of new and targeted products, such as our FR4 optical products, which are designed to meet customers’ needs for high-speed data communications. I expect revenue growth from these investments start to be reflected in financial results for Q4FY24 and beyond.”
For the three-month period ending March 31, 2024, revenue decreased slightly by 16% to $412 from $492 during the corresponding quarter in 2023, primarily due to the cyclical nature of the optical semiconductor market. NRE revenues decreased to US$142 or 34% from US$177 during the corresponding quarter in 2023. This year there was a decline in NRE revenues in the quarter as some important client NRE projects in the previous year were completed.
Gross margin for the quarter was ($610) compared to ($318) for the same period last year, a decline of ($292), or (92%). The decline is primarily due to rising materials and labor costs to support production ramps in wafer production. “Customer demand is increasing rapidly and manufacturing is now at full capacity, delivering both to customers and stockpiling inventory,” noted Stan Besko, CFO of Enablence Technologies.
The story continues
As the Company increased its staff, R&D and production capacity, the Company recognized a net comprehensive loss of $2,520 during the third quarter of fiscal 2024, compared to a net comprehensive loss of $2,847 during the same period of the previous year. This lower loss is mainly due to the drop in operating expenses, keeping revenues stable.
“Continued investments in production, R&D and general sales and marketing for the third quarter are ensuring that Enablence will be effectively positioned to capitalize on its growing pipeline,” said Besko.
The “Financial Highlights” above are qualified in their entirety by the Financial Statements, which are available on SEDAR (www.sedarplus.ca) in the Enablence issuer profile. For additional information about the Company, please see the Company’s investor presentation, which is available on the Enablence website (www.enablence.com/investors) in the “Corporate – Investors” tab.
About Enablence Technologies Inc.
Enablence is a publicly traded company listed on the TSX Venture Exchange (TSXV: ENA) that designs, markets and sells optical chips and subsystems, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips for data communications , telecommunications , automotive and artificial intelligence (AI) applications. Enablence’s products serve a global customer base, today primarily focused on data centers and other fast-growing end markets. Enablence also works with customers leveraging its technology in emerging markets, including medical devices, automotive LiDAR, and virtual and augmented reality headsets. In select strategic circumstances, the Company also uses its proprietary, non-captive manufacturing facility in Fremont, California to manufacture chips designed by third-party customers. For more information visit: www.enablence.com.
For more information contact us:
Stan Besko, MBA, Chief Financial Officer
Enablence Technologies Inc.
stan.besko@enablence.com
Todd Haugen, CEO
Enablence Technologies Inc.
todd.haugen@enablence.com
Ali Mahdavi, Capital Markets and Investor Relations
am@spinnakercmi.com
Media and Analysts
Alison Parnell
Hill and Kincaid
press@hillandkincaid.com
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking statements regarding the Company based on management’s current expectations and assumptions, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the Company operates. All such statements are forward-looking statements within the meaning of applicable Canadian securities legislation. Any statements contained herein that are not statements of historical fact may be considered forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. These statements are based on current expectations that involve a number of risks and uncertainties that could cause actual results to differ from those anticipated. Although the Company believes that the expectations reflected in the forward-looking statements contained in this press release and the assumptions upon which such forward-looking statements are made are reasonable, there can be no assurance that such expectations will prove to be correct. We caution our readers of this press release not to place undue reliance on our forward-looking statements because certain factors could cause actual results or conditions to differ materially from current expectations. Additional information regarding these and other factors that may affect the Company’s operations is set forth in the Company’s continuous disclosure documents that can be found on SEDAR (www.sedarplus.ca) in the Enablence issuer profile. Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
To view the original version of this press release, please visit https://www.newsfilecorp.com/release/210875