Icron Reports Third Quarter Results

BURNABY, BC, Nov. 3 /CNW/ - Icron Technologies Corporation (TSX Venture: IT), the developers of ExtremeUSB^®, today released financial results for the third quarter ending September 30, 2010.

Highlights for Q3 2010:

• Record Q3 revenues of $2,942,884 representing an 8.7% increase over Q3 2009; excluding the impact of foreign exchange, revenues increased by 16.0%, revenues increased by 42.0% over Q2 2010;
• Gross margin was 55.6%, a 420 basis point increase from 51.4% in the third quarter of 2009 and a 240 basis point improvement from 53.2% in the second quarter of 2010;
• Achieved record net income for Q3 of $377,273 compared to a net loss of $98,646 in the same period of 2009 and a net loss of $218,863 in the second quarter of 2010;
• Cash and investments totaled $2,263,370 at September 30, 2010, a decrease of $67,580 when compared with the $2,330,950 at June 30, 2010.  Working capital increased by $466,450 to $4,637,720 in Q3 compared to $4,171,270 in Q2 2010;
• The Company received a government grant from the National Research Council of Canada for up to $80,000 towards the development of USB over DisplayPort 1.2 solutions;
• Announced the appointment of Soltron Corporation as Icron's official sales agent in South Korea.

Management's Comments:
"We are pleased with our financial performance for the quarter which delivered record revenue of $2.943 million, improved gross margins and record profitability, said Robert Haefling president and CEO. "The opportunities we see in our core markets, combined with our new product and technology innovations, demonstrate we are executing on Icron's growth strategy."

Financials:

Revenue amounted to $2,942,884 for the three months ended September 30, 2010, compared to $2,706,598 in the same period of 2009, an increase of 8.7%.  Excluding the impact of foreign exchange, revenues increased by 16.0%.

Our next generation 2.0 products generated combined sales of $1,331,028 during the third quarter which is a 48.3% increase over the $897,227 recorded in the third quarter of 2009 and accounted for 45.2% of all revenue during the quarter.  

Gross margin amounted to $1,635,331 in the third quarter of 2010, compared to $1,392,100 in the third quarter of 2009. Our gross margin percentage increased to 55.6% for the three months ended September 30, 2010, compared to 51.4% in the same period of 2009. The increase in gross margin versus the previous year is attributable to larger revenue mix of high margin products utilizing Icron's developed ASIC.  In addition, Icron transitioned the majority of production to Asia in the third quarter allowing the Company to further reduce manufacturing costs and increase margins.

Our net income amounted to $377,273, or $0.02 per share, in the three months ended September 30, 2010, compared to a net loss of $98,646 thousand, or $(0.00) per share, in the same period of 2009. 

For complete financials please visit www.sedar.com or www.icron.com.

Conference Call / Web-cast:

November 3rd, 2010, 4:30 PM ET, 1:30 PM PT

To participate in the live conference call, please call (647) 427 - 7450 or 1 (888) 231 - 8191

The conference will also be broadcast live over the Internet and archived through the following link:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3294280

About Icron Technologies Corp.
Icron Technologies (TSX-V:IT) is a global leader in the design and manufacturing of high-performance PC Video and USB extension solutions for commercial, medical and industrial markets. Icron's patented ExtremeUSB® technology extends the range of any USB peripheral device over Cat 5, Wireless, Fiber and DisplayPort, at distances up to 25 miles (40km). Icron's extension products are deployed in a wide range of applications including: digital home connectivity, industrial automation, medical imaging, aerospace, and KVM extension. Icron's ExtremeUSB® technology is available in a variety of formats including branded and private-label products, OEM modules, and Integrated Circuits.

Icron is a publicly traded corporation and trades under the symbol "IT" on the TSX Venture Exchange. For more information on the company and its products, please visit http://www.icron.com.

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.

FORWARD-LOOKING STATEMENTS:  Except for statements of historical fact, all statements in this news release―including, without limitation, statements regarding financial estimates and future plans and objectives of Icron―are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

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For further information:

Robert Haefling
Icron President and CEO
604-638-3924
[email protected]