Maintains Positive Cash Flow MONTREAL, May 13
/PRNewswire-FirstCall/ -- Avensys Corporation (OTC Bulletin Board:
AVNY; FRANKFURT WKN: A0M9YA), a leading manufacturer of high-end
fiber optic components, and a distributor and integrator of
environmental and process monitoring systems, today reported its
financial results for the third quarter of fiscal year 2009, ended
March 31, 2009. Third Quarter Fiscal 2009 Results Total
consolidated revenue for the fiscal third quarter 2009 ended March
31, 2009, was $5.4 million compared to $5.8 million in the same
period a year ago. For the third quarter of fiscal 2009,
consolidated gross profit was $1.9 million compared to $2.0 million
year-over-year. Gross margin as a percentage of revenues, for the
quarter, increased to 35.4% compared to 34.7% in the same period a
year ago. Cash flow generated by operations for the third quarter
was $285,000 as compared to cash used in operations of $691,627 for
the same period a year ago. Net loss for the third quarter was
$134,257 versus $273,779 in the same period of the previous year,
and includes a provision for severance costs of $218,000. Nine
Month Fiscal 2009 Results Total consolidated revenue for the nine
months ended March 31, 2009, rose 12.5% to $16.5 million, from the
$14.7 million recorded for the same period a year ago. For the nine
months ended March 31, 2009, gross profit on a consolidated basis
was $5.5 million as compared to $5.3 million in the same period a
year ago. During this period, gross margin was 33.2%, as a
percentage of consolidated revenues, compared to 36.3% for the same
period a year ago. Cash used in operations during the first nine
months was $35,000, compared to cash used in operations of $1.6
million for the same period a year ago. For the nine months ended
March 31, 2009, net loss was $4.1 million as compared to $2.8
million during the same period a year ago. Included in the net loss
of $4.1 million is a loss on impairment of goodwill of $3.9 million
taken in the second quarter ended December 31, 2008. Avensys
Solutions Avensys' environmental and process monitoring business,
Avensys Solutions, continued to see growth, 25.1% for the current
quarter, compared to the same period a year ago. This growth is a
result of the positive integration from the Willer Engineering
acquisition, which offset the negative impact of the current
economic downturn, since revenues generally lagged behind our
expectations. During the third quarter, we further continued the
restructuring of Avensys Solutions by reducing the size and related
costs of our management team. Dr. Hassan Kassi was appointed chief
operating officer (COO) of Avensys Inc., and is now responsible for
the operations of both divisions: Avensys Tech and Avensys
Solutions. In addition, Mr. Pierre Michaud was promoted as
vice-president of Sales & Marketing for Avensys Solutions.
Avensys Tech Avensys' optical component business, Avensys Tech,
reported revenues for the third quarter period, ending March 31,
2009 of $2.9 million, a 23% decline from the $3.8 million reported
for the same period a year earlier. Avensys Tech experienced a
softening in demand from the telecommunications market during this
quarter, particularly as it relates to undersea components and
demodulators. This decline was partially offset by an increase in
demand of multi-mode combiners for the industrial fiber laser
market and an increase in revenues derived from contracts to build
leading-edge high power fiber laser components and systems. We
continue to ship substantial quantities of Fiber Bragg Gratings.
President and Chief Executive Officer, John G. Fraser of Avensys
Corporation, commented, "We are confident that our efforts to
diversify our offering, conserve cash, reduce costs and increase
our sales efforts has allowed us to weather this challenging
economic environment." Mr. Fraser added, "Management believes that
Avensys will survive the current economic downturn, however, the
current capital structure may not be sufficient to support its
future growth objectives and technology development. To this end,
the Company has engaged Connecticut-based Lightwave Advisors Inc.,
a financial advisory firm, to assist the Company in reviewing and
evaluating its financial and strategic alternatives." About Avensys
Corporation Avensys Corporation operates Avensys Inc., its
wholly-owned core subsidiary. Avensys Inc., through its
manufacturing division Avensys Technologies, designs, manufactures,
distributes, and markets high reliability optical components and
modules as well as FBGs for the telecom market, and high power
devices and sub-assemblies for the industrial market. Avensys
Technologies is also a pioneer in the development of packaged
fiber-based sensors and possesses licences in regards to leading
edge intellectual property. Avensys Solutions, the other division
of Avensys Inc., is an industry leader in providing instrumentation
and integrated solutions for the monitoring of industrial processes
and environmental surveillance applications for air, water and soil
in the Canadian marketplace. To find out more about Avensys
Solutions, please visit our website at
http://www.avensyssolutions.com/. For Avensys Corporation company
news and updates you can also visit
http://www.avensyscorporation.com/. Forward-Looking Statements:
Except for historical information contained herein, the statements
in this news release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties, which may cause a
company's actual results, performance and achievement in the future
to differ materially from forecasted results, performance, and
achievement. These risks and uncertainties are described in the
Company's periodic filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances
after the date hereof, or to reflect the occurrence of
unanticipated events or changes in the Company's plans or
expectations. For more information, please contact: Ms. Sherine
Attia Avensys Corporation Tel: 1.877.904.6030 Use of Non-GAAP
Financial Measures The Company provides non-GAAP financial
measures, such as adjusted EBITDA, to complement its consolidated
financial statements presented in accordance with GAAP. Non-GAAP
financial measures do not have any standardized definition and,
therefore, are unlikely to be comparable to similar measures
presented by other reporting companies. These non-GAAP financial
measures are intended to supplement the user's overall
understanding of the Company's current financial and operating
performance and its prospects for the future. Specifically, the
Company believes the non-GAAP results provide useful information to
both management and investors by identifying certain expenses,
gains and losses that, when excluded from the GAAP results, may
provide additional understanding of the Company's core operating
results or business performance, which management uses to evaluate
financial performance for purposes of planning for future periods.
However, these non-GAAP financial measures are not intended to
supersede or replace the Company's GAAP results. The company uses
adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization, adjusted for debentures and preferred shares
accretion, and changes in fair value of derivative instruments) as
a non-GAAP financial measure in this press release. A
reconciliation of EBITDA to the operating loss for the first
quarter of 2009 is as follows: Adjusted EBITDA (Expressed in
thousands of US Dollars) For the Three For the Nine Months Ended
Months Ended March 31, March 31, 2009 2008 2009 2008 Net Income
(Loss) (134) (274) (4,056) (2,835) Plus Interest expense, net 83 53
236 238 Depreciation and amortization 262 323 834 940 Loss on
impairment of goodwill - - 3,889 - Loss on redemption of
convertible debentures - - - 1,423 Debentures and preferred shares
accretion 342 234 953 679 Change in fair value of derivative
financial instruments (440) 97 (1,617) (242) Income Tax Benefit
(181) (275) (538) (870) Adjusted EBITDA (Loss) (68) 158 (299) (667)
Condensed Financial Statements Consolidated Statements of
Operations (Expressed in thousands of U.S. Dollars, except for per
share amounts) For the Three For the Nine Months Ended Months Ended
March 31, March 31, 2009 2008 2009 2008 $ $ $ $ Revenue 5,410 5,781
16,497 14,659 Cost of Revenue 3,496 3,775 11,020 9,336 Gross Margin
1,914 2,006 5,477 5,323 Operating Expenses Depreciation and
amortization 208 222 644 712 Selling, general and administration
1,790 1,676 5,062 4,786 Loss on impairment of goodwill - - 3,888 -
Research and development 250 644 1,004 1,806 Total Operating
Expenses 2,248 2,542 10,598 7,304 Loss from Operations (334) (536)
(5,121) (1,981) Other Income (Expenses) 29 (359) 537 (2,355) Income
Tax Benefit - Refundable tax credits 181 275 538 870
Non-Controlling Interest - - - - Results of Discontinued Operations
(10) 346 (10) 631 Net Loss (134) (274) (4,056) (2,835) Net Loss per
share - Basic and Diluted (0.00) (0.00) (0.04) (0.03) Weighted
Average Common Shares Outstanding 99,086,152 98,290,264 99,082,755
96,866,392 Consolidated Balance Sheets (Expressed in thousands of
U.S. Dollars) March 31, June 30, 2009 2008 $ $ ASSETS Current
Assets 8,114 9,836 Property and equipment, net 1,760 2,490
Intangible assets 2,753 3,879 Goodwill - 4,645 Deferred financing
costs 311 405 Deposits 125 85 Total Assets 13,063 21,340
LIABILITIES AND STOCKHOLDERS' EQUITY Total Current Liabilities
8,460 9,137 Long-term debt, less current portion 90 191 Convertible
debentures 1,415 1,299 Balance of purchase price payable 1,259
1,706 Derivative financial instruments 117 1,364 Total Liabilities
11,341 13,697 Non-controlling Interest - 8 Total Stockholders'
Equity 1,722 7,635 Total Liabilities and Stockholders' Equity
13,063 21,340 DATASOURCE: Avensys Corporation CONTACT: Ms. Sherine
Attia, Avensys Corporation, 1-877-904-6030 Web Site:
http://www.avensyscorporation.com/
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