Dynex Power Inc. announced results for the year ended December 31st, 2007. Dynex states that a revenue growth of over 27% in 2007 reflected the strong demand in the market place for its products. Gross margin rose from 17.7% to 22.8%, the fourth consecutive year of improvement and its highest level for 6 years. The gross margin in 2007 of $6.9 million represented an increase of 64% over 2006. With expenses only rising by 4% to $4.9 million, the company recorded net earnings of $2.2 million, the highest figure since 2000.
The growth in the order book was even higher than the growth in revenue. Orders taken of $44.3 million were 49% higher than the previous year and gave a book to bill ratio of 1.4. The company states that such a level of order in-take, combined with a year end order book of $24.4 million gives its management high confidence that further growth in both revenue and net earnings can be achieved in 2008.
Dr. Paul Taylor, President and Chief Executive Officer commented, "This was an excellent result for the company. The strong growth in revenue, the excellent improvement in gross margin and the continued control of expenses are all causes for celebration. We have now established a track record of improvement over several years and we expect to extend that record in 2008."
Bob Lockwood, Chief Financial Officer commented, "The improvement in our gross margins from a low of 3.6% in 2003 to 22.8% last year and the fall in expenses over the same period from 34.3% to 16.4% of sales revenue reflect the hard work that all employees have contributed to turning the business around. The growth in order in-take and the strength of our order book give us great confidence that we shall continue to see further improvements in performance. The next big challenge we face is funding the capital expenditure required to expand our capacity and improve our efficiency in order to meet the growing demand in the marketplace for Dynex products."
