Ottawa, Ontario--(Newsfile Corp. - November 21, 2024) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a leading provider of optical chips and sub systems that performs communications, sensing and computing in datacom, telecom, automotive and artificial intelligence (AI) applications has filed its audited financial statements for the first quarter ending ("Fiscal Year 2025") 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.
Commenting on the Company's first quarter 2025 performance, CEO, Todd Haugen stated, "We exceeded our targets with over 400% growth for the first quarter ended, September 30, 2024. This marks a major turning point for the Company. Our growing success reflects the strength of our strategic plan backed by strong demand for our products and an expanding customer installed base across datacom and advanced vision market segments."
"For the quarter ended, sales of key datacom, LiDAR and AI products increased significantly with progress being made across our three key business segments. This reflects a healthy and rapidly growing order book, greater long-term visibility through the pipeline. Our success includes significant market traction in both the traditional optical communications market and new growth, optical sensing, and optical compute markets. This is largely being driven by investments in artificial intelligence (AI) where we are positioned to succeed."
Haugen added, "Our key goal remains to onboard new infrastructure as quickly as possible to support new and existing customer demand. For example, we increased investments in manufacturing infrastructure, implemented refurbishment programs across our facilities and invested in new, high volume production equipment that is designed to meet demand of 1000/wafer starts per week in FY2026. This will allow us to aggressively drive more product to market targeting traditional datacom customers while still seeding high growth, advanced vision markets such as LiDAR. Due to rapidly increasing demand, Q2 will remain roughly flat as we continue investing in capacity, enabling significantly increased deliveries in Q3 and Q4. Additionally, in the third quarter, customers will begin production of the first LiDAR and AI products containing Enablence optical semiconductors. This marks another milestone for the Company validating our strategy and diversifying our revenue stream."
"As a result of these successes, we are raising our revenue guidance for FY25, increasing our revenue target 10% to $5.5 - $6M representing year over year growth of over 375% which re-affirms the company commitment to be gross margin positive this fiscal year. This decision reflects our confidence in our strategy, and greater long-term visibility into the pipeline, expanding product portfolio and operational efficiencies that will enable us to meet the growth needs of new and existing customers," added Haugen.
Financial Highlights
Enablence is pleased to provide the following highlights for the first quarter 2025FY (all dollar figures are expressed in thousands of United States dollars):
- Revenue for the three months ended September 30, 2024 was $1,218 as compared to $225 for the same period in the prior year, an increase of $993, or 441%. This quarter saw a significant increase in product revenue to $971, up from $61 or 1492%. Sales into AsiaPac increased to $959, up from $69 over the same period last year, with the region now representing 79% of total revenues.
- The Company generated net loss of $3,913 for the three months ending September 30, 2024 (2023 - net loss of $2,204).
- Investors injected another $4,469 in new funding over the period as the Company invests in manufacturing capacity and in R&D as its product continue to gain significant traction.
- Commenting on the Q1 2025FY Highlights, CFO Stan Besko said: "Top line revenue growth and cost prioritization are progressively moving Enablence to toward profitability"
Outlook
Based on the Company's current business outlook, management expects the overall performance for Fiscal Year 2025 to be as follows:
- We are raising our revenue guidance for FY25, increasing our revenue target 10% to $5.5M - $6M.
- Based on current projections, we expect to become gross margin positive in FY2025
- Investments in fab upgrades will greatly expand capacity from 100 wafer starts per week to 700 wafers per week in FY2025, helping meet demand.
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.
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