Enablence Technologies Announces Financial Results for Fiscal Year 2021; Reminds Shareholders of Upcoming Meeting
Ottawa, Ontario--(Newsfile Corp. - October 21, 2021) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a supplier of optical components and subsystems, has filed its audited financial statements for the fiscal year ending June 30, 2021 ("Fiscal Year 2021") and related management's discussion and analysis and certifications (collectively, the "Financial Statements"). Electronic copies of the Financial Statements are available on SEDAR (www.sedar.com) under Enablence's issuer profile.
Annual and Special Meeting of Shareholders
The Company wishes to remind shareholders that its annual and special meeting (the "Meeting") is scheduled to be held on Tuesday, October 26, 2021 at 10:00 a.m. (Toronto time) at the Toronto offices of Bennett Jones LLP, located at One First Canadian Place, Suite 3400, Toronto, Ontario, M5X 1A4. Shareholders may also listen to, but not cast votes during, the Meeting by using the conference line details below.
Conference Line - 1-800-901-0218 (North America) or 1-719-234-0223 (International)
Passcode - 1450259052
The Company is pleased to report that Glass, Lewis & Co., an independent third party shareholder advisory service, has recommended that shareholders vote FOR each of the resolutions contained in the management information circular of Enablence dated September 21, 2021 (the "Circular"), which has been mailed to shareholders in connection with the Meeting.
The Board of Directors of Enablence strongly encourages shareholders of the Company to vote FOR each of the resolutions contained in the Circular by (i) completing a proxy, or (ii) voting online, in advance of the proxy voting deadline of 10:00 a.m. (Toronto time) on Friday, October 22, 2021. Alternatively, registered shareholders may vote in-person at the Meeting.
If you have questions or need assistance with the completion and delivery of your proxy, you may contact the Computershare Investor Services Inc. at 1-800-564-6253 (toll free North America) or 1-514-982-7555 (international).
Enablence is pleased to provide the following financial highlights for Fiscal Year 2021 (all dollar figures are expressed in thousands of United States dollars):
- Company revenue increased to $2,521 for the twelve month period ending June 30, 2021 (2020 - $1,101), an increase of approximately 129% over the prior year. Revenue gains were driven primarily by recurring product revenue of $1,741 (2020 - $727), which increased by $1,014 or approximately 139%. Non-recurring ("NRE") revenue also increased significantly to $780 (2020 - $374), an increase of $304, or approximately 109%.
- Product revenue includes approximately $329 (2020 - $Nil) in revenue to a mega-cap technology company whereby the Company produces wafers based on the customer's proprietary designs in its fabrication plant in Fremont, California (the "Fremont Fab"). Recurring product orders from this customer have increased approximately 426% between the first quarter of Fiscal Year 2021 (the period when recurring orders first commenced) and the fourth quarter of Fiscal Year 2021. An additional $42 in revenue for Fiscal Year 2021 (2020 - $Nil) was generated in the NRE category for this customer related to initial design and development work in advance of recurring orders. This contract work increases capacity utilization for the Fremont Fab which helps amortize overall facility operating costs and allows Enablence to access growth in the emerging augmented and virtual reality markets.
- The Company continues to expand in NRE business in emerging markets for optical chips, such as autonomous navigation systems ("LiDAR"), optical sensors and medical devices. Subsequent to the end of the year, the Company entered into a new, multi-phase NRE contract with a large U.S. university, partnering with a multinational telecommunications systems company, to develop optical coherence tomography products for the medical device market using Enablence designed chips. This new contract demonstrates the wide range of potential future uses for the Company's products over-and-above its core markets in the data centre and telecommunications (5G) industries. The Company believes that successful NRE projects could lead to larger recurring products revenue in the future if these products are commercialized by our customers.
- The Company has recorded Other Income during the year for the $1,226 (2020 - $Nil) in loans received under the Paycheck Protection Program ("PPP") administered by the U.S. Small Business Administration ("SBA"). The first PPP loan received in May 2020 has already been forgiven and the Company has met the criteria for forgiveness of the second PPP loan received in February 2021. The forgiveness application was submitted to the SBA subsequent to the end of Fiscal Year 2021.
- The Company's net loss has been reduced to $5,041 (2020 - $9,557) for Fiscal Year 2021, primarily as a result of increasing revenue ($1,420), reductions in operating expenses ($851), additions to other income - primarily stemming from the PPP loans ($1,206) and foreign exchange gains ($1,274) from the improving Canadian dollar throughout the period which lowers the Canadian dollar equivalent of the U.S. dollar balances owed on a portion of the Company's notes payable.
The "Financial Highlights" above are qualified in their entirety by the Financial Statements, which are available on SEDAR (www.sedar.com) 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, manufactures and sells optical components, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips. Enablence products serve a global customer base, primarily focused today on data centre and telecommunications infrastructure (namely 5G) 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 Enablence's website (www.enablence.com).
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. We caution our readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's continuous disclosure documents that can be found on SEDAR (www.sedar.com) 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 as a result of new information, future events or otherwise.
For further information contact:
Craig Mode, Co-CEO and CFO
Enablence Technologies Inc.
Ashok Balakrishnan, Co-CEO and CTO
Enablence Technologies Inc.
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.
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