Tuesday, 1 May 2007

Icron Releases Q1 With Positive Earnings

Today Icron released its Q1 results showing a 45% increase in revenues over Q1 last year to $2.0 million and profit of $150,000 or $0.01 per share!

During the conference call management reaffirmed their strategy to get the ExtremeUSB technology on their very own ASIC chip (application-specific integrated circuit). Management believes, and we agree, that an in house ASIC is key to Icron's sustainable long term growth as it will allow the company to become a much more cost effective supplier of wired and wireless USB extensions - not to mention it makes the company more vertically integrated and allows it to better control its destiny.

As part of the new undertaking, R&D costs are expected to increase during Q2 and part of Q3, but management still expects to keep earnings close to the range announced today. Then once the ASIC is ready to go, Icron's more cost effective solution can begin to garner larger market share, in particular from the consumer side of the USB market.

Icron president and CEO Rob Eisses said the company's profile is increasing around the world, and feedback from the WiRanger product has been excellent. The WiRanger began shipping right at the end of Q1, so expect to see initial sales in Q2 and ramping up towards the end of the year.