OTTAWA -- Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA - News), a leading supplier of broadband optical equipment and components, including fiber-to-the-home (FTTH) equipment for triple-play residential and business services, announced today financial results for its fiscal third quarter ending January 31, 2009.
Revenues for the third quarter were $14.8 million, up 68% or $6.0 million from the $8.8 million generated during the second quarter of fiscal 2009 and a $14.5 million increase from $261,000 during the third quarter of fiscal year 2008. The revenue growth in this quarter resulted mainly from the acquisition of Pannaway Technologies Inc. ("Pannaway"), whose financial results were included in Enablence's consolidated results since the acquisition date of November 19, 2008. During the third quarter the Company recorded a net loss of $49.5 million ($0.24 per share). This loss included non-cash write-downs of $47.7 million of the Company's intangible assets and goodwill, arising from the Company's acquisitions in 2007 and 2008, offset by a $7.4 million non-cash income tax recovery. The net loss for the third quarter of fiscal year 2008 was $2.6 million ($0.02 per share), of which $1.1 million comprised non-cash charges. The Company's cash position was $18.7 million on January 31, 2009, compared to $32.2 million on October 31, 2008, reflecting the cash used for one-time re-structuring costs following the Pannaway acquisition, the funding of Pannaway's working capital requirements and general company operations during the third quarter.
"The acquisition of Pannaway was a key milestone for Enablence as it helped expand our customer base by adding nearly 300 rural telco customers in North America. Pannaway also broadened our product portfolio to provide a migration path from DSL and POTS to Active Optical Networks and Passive Optical Networks, positioning us strongly in the important rural markets of the U.S." said Arvind Chhatbar, Chief Executive Officer. "This acquisition, combined with our ongoing initiatives, also contributed to the improvement in gross margins by about 12% from the previous quarter and augmented the size of the domestic sales team responsible for selling a wider array of products." said Mr. Chhatbar.
"As we vertically integrate and consolidate operations in pursuit of a competitive edge, Enablence, like so many other companies, is not immune to the consequences of the unprecedented economic turmoil in the U.S. and around the world. We evaluated the carrying values of our intangible assets and goodwill, and determined that their value has been impaired due to the recessionary economic conditions and that a fairer value has to be associated with these assets to reflect the present operating reality. As a result, impairment associated write-downs added $0.20 per share to the loss for the quarter." said Mr. Chhatbar.
"On the whole, we are pleased with the overall increase in revenues and gross margins in a tough environment" says Mr. Chhatbar. "The addition of Pannaway and its immediate integration into our existing operations will result in an annual savings of more than $11 million. When coupled with the added benefits from vertical integration we anticipate further improvements in our gross margins in the coming quarters with the ultimate goal of achieving profitability for both of our Divisions by end of the next fiscal year." said Mr. Chhatbar. "As we work towards those goals, we recognize that the unstable economic environment makes any projections difficult, but we are closely monitoring all aspects of our operations and intend to implement whatever actions are necessary to ride out the economic storm" added Mr. Chhatbar.
Enablence Technologies Files for Short Form Prospectus Offering
(time to change the managment & technical leadership at Andevices looks like they dont know how to add a margin cost to what they sell or they don't want to admit how much it costs to produce what little PLC devices they make, how many wafers does it take to knock out 1 AWG? How much does it cost to process the wafers before, during & after a device is deemed a respectable candidate?
I think a new name for the PLC is Pretty Lousy Choice
Habitual loss = not for profit operation.
Enablence has historically financed its operations primarily through the issuance of shares. Debt was assumed on the acquisition of ANDevices, Inc. The lending institution that provides these credit facilities has advised the Company that it does not intend to renew the operating line of credit ($943 at January 31, 2009) when it matures on March 31, 2009. The term loan will remain outstanding at that time under the existing terms and conditions with a maturity date of March 31, 2012. The Company expects that its current level of cash and cash equivalents will be sufficient to meet its operations and capital expenditures for more than the next 12 months. However, if economic conditions deteriorate, thus preventing the Company from achieving its operating objectives or if the current banking crisis results in financial institutions requiring the Company to provide additional cash collateral in support of its credit facilities or if its lenders seek early repayment of the Company’s obligations, the Company may not have sufficient cash and cash equivalents to meet its operations and capital expenditures for the next 12 months. Enablence expects to receive nominal cash proceeds on the issue of additional common shares on the exercise of options and warrants depending in part on the market price for its shares. The Company is evaluating the opportunity to raise additional funds through either the public or private placement of equity capital to strengthen its financial position and facilitate possible investments and to provide sufficient cash reserves to protect itself from the effects of the current unpredictable economic conditions.
Enablence Technologies Inc. Files Preliminary Short Form Prospectus
Looks like Andevices is a not for profit entity or unable to profit
FTF- Follow The Facts..
http://www.lightreading.com/messages.asp?piddl_msgthreadid=227678&piddl_msgid=182655#msg_182655
Enablence stock to be at 50 pennies or less per share for the next two years... so stop all the HYPE about it getting any higher, the lies have been exposed via the public domain.
It looks like the word floating around at the show was correct.
Enablence burned through $14M of the $32M that it had left in Q3. This gives it 2 more quarters of "life" (if you want to call it that) at the pre-Pannaway burn rate before a flame out. Who will be Arvind's next Pigeon? The Canadian or Provincial Gov't or merely another dupe-in-waiting?
Practically speaking given the lag between reporting and the calendar...he's got 4 months left.
He's gotta do something fast, and selling the Benz won't help out much.
PIRI was founded in 1987 by NTT, MC, MIC and Battele for R&D, manufacturing and sale of optical waveguide products and related components/products in the US market. With a help of technology transfer from NTT, PIRI has developed optical waveguide products and has been selling them in worldwide. By a growing demand for the broadband network, demand for PIRI's core product, AWG(Arrayed-Waveguide Grating), which is used for DWDM(Dense Wavelength Division Multiplexing) has expanded very rapidly and has succeeded in clearing its accumulated debt in 1997.
Didn't PIRI get sold to SDL then JDS Uniphase? yes
Is there anything original from the corporation or is this all copycat / re-labeling stuff, what do they call it when you copy someones design.. lazy, sleazy, sneaky, un-original.
Kinda like pirating DVD's and re-labeling them.
Ok so you so called Analysts.... or better yet you people who hired them to do their due diligence work, bet you kinda feel ripped off right about now..
is the statement "buyer beware" an understatement.
do you know the meaning of " safe harbor"
A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. In effect, this gives the target company a "safe harbor."
An accounting method that avoids legal or tax regulations and allows for a simpler method (usually) of determining a tax consequence than those methods described by the precise language of the tax code.
Wonder whats in store for the TODC , who owns the intellectual property for this one?
1) cost to produce purchase order to buy from Wooriro
2) Cost to relabel and re-box devices.
3) Cost to prepare & ship.
4) Cost to create data sheet
5) waste of time ,labor,& stockholders investment
add it up subttract from purchase prices and chances are your losing money.
worst part is that they claim that they make these and it does not appear to be as from the pictures their product is idtentical to Wooriro.
What else do they re-label.. and do we stockholders want this company to be in this business of re-labeling & decieving.
Focus on genuine product development.
Clearly not a PLC leader if buying from someone else then slapping your label on it & claiming that this is from your patented process..
Enough of the lies.
due diligence!!!!!!
A better idea is to have your web site point to Wooriro and rather than waste the stock holders money re-labeling & repackaging you guys can arrange some kind of commission.
now for you so called ANALYSTS try to figure out why the corporation would be willing to lie that this is their product?
Enablence really is pretty obvious: it is trying to buy its way to profitability because the original technical value proposition hasn't panned out. So Arvind glued together one good company (W7) with a bunch of ne'er do wells (ANDevices and Pannaway) and thinks that all he has to do is strip out the redundant overhead to achieve victory. Instead all he has done is add additional layers of management, increase the operating burn and create a strategic conflict between his component group and its customers.
This conflict is the same one that LU, NT, and Alcatel had years ago. No OEM wanted to funnel money into a competitor. Think about it; if you were NT, why would you buy components from another division of your mortal enemy LU?
But soon enough Arvind will have to go raise money from somewhere because he burned through nearly all of it. Maybe TomatoDan can lend him a few bucks
Due diligence: The term "Due Diligence" first came into common use as a result of the Securities Act of 1933
The US Securities Act included a defense referred to in the Act as the "Due Diligence" defense which could be used by broker-dealers when accused of inadequate disclosure to investors of material information with respect to the purchase of securities.
So as long as broker-dealers conducted a "Due Diligence" investigation into the company whose equity they were selling, and disclosed to the investor what they found, they would not be held liable for nondisclosure of information that was not discovered in the process of that investigation.
In a nut shell this is what we have: June 2000 SDL Acquires PIRI , JDSU Acquires SDL 2001, JDSU acquires Scion in 2001 ( Scion basically makes AWG’s and other cool PLC devices)
“ From the acquisition of PIRI, SDL gets a critical silicon wafer-based optical integration technology that is expected to improve performance and lower costs in next generation DWDM systems”
Right about the time that SDL Acquired PIRI, a handful of ex-employees started axon photonics making the same product as PIRI, Axon folded ( split in two) and Andevices was formed. Clearly at their trade booths the guys make it a point that they were from PIRI.
So if a few ex employees left Enablence and started to make triplexers, you would think that enablence much like any company who has a vested interest in their technology would seek to protect it.
Will this become another Metconnex since JDS Uniphase is also in the business of making money from their investments in the companies they had purchased such as PIRI indirectly via SDL. Although they chose to go with SCION they did buy SDL and PIRI interests alike. And to this day make AWG;s ,ROADM,s and other cool variations, just look at their patents.
So who are these so called Analysts that are supposed to look this kind of due diligence?
Another interesting fact surfaced in Columbus ohio where a few ex piri people started a pretty nifty service within the area of PLC devices PLC Connections and the relationship to Andevices ( Andevices sales & marketing guy in picture), any due diligence discovery / disclosure here depends on how much Andevices depends on PLC connections to produce product.
PLC connections actually is a company I would invest in as it seems that they service companies involved in PLC devices. I guess a company with deep pockets would find a little gem here.
What assurances do we have that the corporation can sustain a challenge, that former employees took their know how from their prior employer and used it for their own agenda?
What other questions need to be answered: What intellectual property is being used to make all of their AWG devices, such as the Optical Channel monitor, TODC,etc.
Will we have another AIG type bonus in store for the CEO, last year he got nearly 1 million dollars as the company was losing money.
This is absurd to be able to get a bonus then a couple months later layoff hundreds of people.
A bonus when the corporation is losing money.
What makes people believe that they are special that they deserve a bouns while the company is not performing well, in fact badly. Imagine employees trying to get this scam in their job offer." I perfom badly & have a guaranteed bonus"
was this Inverse performance bonus disclosed, is it a norm?
What kind of business model has bonuses that are inversely proportional to good performance?? What ever happened to an honorable relationship with the stockholders & employees?
Any Analysts who was involved with enablence should take their business cards stand in front of a mirror and repeat this " I am not a Analyst, Iam not an analyst, over & over. Then flush your business cards down the toilet & get a job at a burger joint because thats all your serving- Junk-Food. I just did your job for you.
I want my money back: not a penny more & not a penny less.
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