Tuesday, 3 April 2007

Synopsis of Icron's Year End


The Icron management team held a webcast and conference call in conjunction with its year end results and the release of the WiRanger yesterday. For those of you who missed the call, key financial points were that:

  • Year end revenues were a record $6.3 million, a 39.5% increase over 2005

  • Q4 generated $317,000 in positive cash-flow from operations

  • Ended 2006 with cash balances of $4.4 million

  • During 2006 purchased 442,500 shares or approx 2% of the outstanding

  • Q4 net income was $138,000, vs. $15,000 for Q4 of 2005. Excluding restructuring costs Icron produced net income for the year of ~$20,000.

Once again, management was bang on its target. We are very pleased to see Icron report two consecutive quarters of positive cash flow from operations and maintain it's 30% organic growth rate. This does not even take into consideration the new bluesky of revenues from the wireless 802.11 product. It appears Icron is at the point where it can be considered a consistent earnings and cash flow positive company.

During the call Mr Eisses also outlined the new WiRanger product comparing the benefits of using 802.11 over UltraWide Band Radio.

Compared to UWB, 802.11:

  • Has global regulatory approval. UWB does not.

  • Has a distance advantage. UWB throughput is low beyond a few meters. 802.11 has enough throughput to manage most USB applications at +30 meters.

  • Is inexpensive - chips sell in the $5 range. UWB chips currently sell in the $15 range.

  • The WiRanger's MSRP is $395 USD vs. Y-E Data's UWB hub at ¥39,800, or almost $350 USD
If you have not yet had a chance to listen to the call we encourage you to do so.
Also, if you would like to see a working example of the WiRanger please click here.