Highwave Optical Technologies Announces its Results for the First Semester of Fiscal Year 2005
Lannion, France, November 18 (ots/PRNewswire)
Highwave Optical Technologies (Nouveau Marché, HGWO), a leading European technology supplier of active fiber based components and subsystems for the telecommunication, industrial and defence markets announced today its results for the first semester of fiscal year 2005.
Revenues
Revenues for the first semester of fiscal year 2005, from April 1 2004 to September 30 2004, have amounted to EUR 2.2 million, which represents a 49% increase compared to the previous semester.
Results for the period
The activity for the first semester 2005 results in a net loss of EUR 5 million, to be compared to a net loss of EUR 14 million for the previous full fiscal year. This loss represents a net loss of (EUR 0,08) per share on a fully-diluted basis, to be compared to a net loss of (EUR 0.23) per share during the last full fiscal year.
The company's general and overhead expenses have decreased by 29% on a full-year basis, from EUR 9.3 million for the whole fiscal year 2004 to EUR 3.3 million for the first semester 2005.
Cash Position
The company's cash position as of September 30 2004 amounts to EUR 2.4 million, to be compared with a cash position of EUR 2.9 million as of March 31 2004.
Perspectives
"The continuous improvement of our results since the turnaround process Highwave initiated in 2002 is based both on the reduction of the company's cost structure as well as the growth of the activity. One can expect those two objectives to be pursued going forward. On the one hand, we expect further cost reduction, especially on the real estate level, and our business model allows to increase our activity without incurring additional fixed costs. On the other hand, the new markets we are addressing, namely the laser and very high broadband access (100 Mb/s per subscriber) market, are just starting to pick up and will provide a significant and profitable market potential for our "double clad" technology.
Our financial capacity available through the constant reduction of our cash burn, the disciplined management of our working capital requirements and the expected injection of additional cash subsequent to the acquisition of DA-LightCom should give us the means to implement our organic and external growth strategy for the next semesters.", François Leraillez, CEO, comments.
About Highwave Optical Technologies
Founded in 1998, Highwave Optical Technologies is the European leader in the development, production and marketing of optical components and DWDM (Dense Wavelength Division Multiplexing) subsystems for the telecommunications industry. (DWDM is an advanced technology that increases the capacity of telecom networks). The company is based in Lannion, France. Following an initial public offering in June 2000, shares in Highwave Optical Technologies are traded on Paris Euronext (HGWO). More information is available at: http://www.Highwave-tech.com.
HIGHWAVE OPTICAL TECHNOLOGIES
Balance sheet September 30, 2004.
(In thousands of Euros)
Asset 30/09/2004 31/03/2004
Intangible assets 1 629 2 298
Fixed assets 3 611 5 006
Long term investments 2 478 2 596
Total fixed assets 7 718 9 899
Inventories and work in progress 925 1 469
Prepaid expenses 0
Trade receivables 1 119 1 106
Others receivables 1 331 2 106
Marketable securities 289 289
Cash 2 191 2 783
Deferred charges 187 200
Current assets 6 043 7 954
Accrual asset accounts 38 18
Grand Total 13 799 17 871
Liabilities
Paid-up capital stock 4 198 4 198
Additional paid-in capital 131 738 131 738
Legal Reserves 132 132
Deficit carried forward -123 320 -109 070
Net income (loss) -5 035 -14 250
Total shareholders' equity 7 712 12 747
Other equity 752 765
Reserves for contengencies and others 1 591 1 653
Money borrowed and related debts 128 126
Avances et acomptes reçus 0
Trade payables 1 908 1 046
Taxes and payroll costs 1 664 1 517
Other payables 22
Procees accounted for in advance 0
Conversion gains 22 18
Debt 6 087 5 124
Grand Total 13 799 17 871 Income Statement September 30, 2004.
(In thousands of Euros)
30/09/2004 31/03/2004
(6 months) (12 months)
Net sales 2 243 3 245
Change in finished Product inventory -269 -1 634
Own-work capitalized 0 444
Operating grants 9 542
Reversals of amortization, depreciation and
allowances, expense transfers 3 695 5 906
Other revenues 1 406
Total operating revenue 5 679 8 909
Raw materials and supplies 1 966 4 438
Other purchases and external charges 1 770 4 660
Taxes and related payments 247 173
Wages, salaries and payroll taxes 1 526 4 656
Charges to allowances for fixed assets 2 001 6 690
Depreciation and amortization expenses 3 313 357
Others operating expenses 46 114
Total operating expenses 10 869 21 089
OPERATING INCOME -5 190 -12 180
Fiscal results -8 -4
Current earnings before taxes -5 198 -12 183
Extraordinary income 163 -990
Tax 1 076
Net Income -5 035 -14 250Cash Flow Schedule
(In thousands of Euros)
30/09/2004 31/03/2004
(6 months) (12 months)
Gross cash flow -3563 -8 893
Change in working capital 2629 748
Net Cash used by operating
activities -934 -8 145
Net Cash used by investment 353 43
Net Cash provided by financing
activities -12 347
Effect of exchanges rate changes
on cash and cash equivalent -593 -7 755
Cash at the beginning of the
period 2946 10 701
Cash at the end of the period 2353 2 946Contact:
François Leraillez, Président du Directoire, Highwave Optical
Technologies, +33-2-96-04-20-00; Sylvain Boj, Directeur général,
Highwave Optical Technologies, +33-2-96-04-20-00