Ottawa, Ontario--(Newsfile Corp. - May 28, 2024) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a leading provider of optical chips and sub systems for datacom, telecom, automotive and artificial intelligence (AI) applications has filed its unaudited financial statements for the three months ended March 31, 2024 ("Q3 2024") and related management's discussion and analysis and certifications (collectively, the "Financial Statements"). Electronic copies of the Financial Statements are available on SEDAR (www.sedarplus.ca) under Enablence's issuer profile.
"The quarter ended marks a turning point for the optoelectronics industry and for Enablence, as it returns to pre-downturn levels," said Todd Haugen, CEO, Enablence Technologies. "For the quarter ended, the significant investments that we have made in research and development, and operationally, specifically around new advanced tooling, and engineering processes are accelerating customer wins and product roll outs, such as the recent FR4 family for high-speed data transmission in datacoms."
"Our investments are supporting a growing pipeline in datacom, but also in key strategic products such as advanced vision and artificial intelligence products lines," said Haugen. "Our strategic products continue to show rapid growth, representing more than 34 percent of sales for the quarter ended and we expect this to accelerate materially in the future," added Haugen. "Our Datacom business also continues to benefit from the steady release of new, targeted products like our FR4 optical products which are designed to meet customer requirements for high-speed data communications. I expect the revenue growth from these investments to begin to be reflected in Q4FY24 financial results and beyond."
For the three-month period ending March 31, 2024, revenue decreased slightly by 16% to $412 versus $492 during the corresponding quarter in 2023 due primarily to the cyclical nature of the optical semiconductor market. NRE revenues declined to $142 or 34% from $177 during the corresponding quarter in 2023. This year saw a drop in NRE revenue for the quarter as some key customer NRE projects in the previous year had completed.
Gross margin for the quarter was ($610) as compared to ($318) for the same period in the prior year, a decline of ($292), or (92%). The decline is due primarily to increased costs for material and labour to support production ramps in wafer production. "Customer demand is increasing quickly, and fabrication is now at capacity, delivering both to customers and stocking inventory," noted Stan Besko, CFO, Enablence Technologies.
As the Company ramped up its staff, R&D and production capacity, the Company recognized a comprehensive net loss of $2,520 during the third quarter of fiscal 2024, compared to comprehensive net loss of $2,847 for the same period in the prior year. This lower loss is primarily due to the drop in operating expenses while holding revenues steady.
"Continued investments in production, R&D and overall sales and marketing for Q3 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) under Enablence's issuer profile. For additional information on the Company, please refer to the investor presentation of the Company, which is available on Enablence's 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 sub systems, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips for datacom, telecom, automotive and artificial intelligence (AI) applications. Enablence products serve a global customer base, primarily focused today on data center and other rapidly growing end markets. Enablence also works with customers that have emerging market uses for its technology, including medical devices, automotive LiDAR, and virtual and augmented reality headsets. In select strategic circumstances, the Company also uses its proprietary, non-captive fabrication plant in Fremont, California to manufacture chips designed by third party customers. For more information, visit: www.enablence.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking statements regarding the Company based on current expectations and assumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation. Any statements contained herein that are not statements of historical facts may be deemed to be 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 several risks and uncertainties which 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 news release, and the assumptions on 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 news release not to place undue reliance on our forward-looking statements as a few factors could cause actual results or conditions to differ materially from current expectations. Additional information on these and other factors that could affect the Company's operations are set forth in the Company's continuous disclosure documents that can be found on SEDAR (www.sedarplus.ca) under Enablence's issuer profile. Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether because of new information, future events or otherwise.
Neither 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.
