SLIDE 1
Fourth Quarter Fourth Quarter Fiscal Year 2011 Fiscal Year 2011
1
Fiscal Year 2011 Fiscal Year 2011 Financial Results Financial Results
June 9, 2011
Forward Looking Statements
Certain statements included in this management presentation constitute forward-looking statements, including those identified by the expressions "anticipate”, "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect the Company's current assumptions and expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current assumptions and expectations. Assumptions made in preparing the forward-looking statements contained in this management presentation include, but are not limited to, the following:
- The addressable market for the Company’s products will grow by at least 10% annually.
- The Company will successfully reduce product costs to improve the Company’s gross margin and/or avoid any margin erosion associated with competitive pricing pressure.
- The Company will develop and deliver new products on time in order to satisfy the demands of current and potential customers.
- The Company’s new products will address the needs of new and existing customers and contribute to near term profitability.
- The average exchange rates for Canadian dollars and Euros to US dollars will be US$1.00=CDN$1.00 and Euro 1=US$1.40.
- The Company will have adequate component supply to meet customer demand.
Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following:
- The Company’s quarterly revenue is generally dependent upon conversion of opportunities in the sales pipeline during the quarter and, as a result, revenue and operating
results can be difficult to predict and can fluctuate substantially. The Company’s success in realizing customer opportunities may be negatively impacted by depressed 2 results can be difficult to predict and can fluctuate substantially. The Company’s success in realizing customer opportunities may be negatively impacted by depressed economic conditions, changes in sales cycles, and/or weaker than expected success versus competitors.
- Delays in product development programs for new products and new product features which lead to cost overruns and /or missed customer opportunities.
- The Company’s gross margin and operating results may be adversely affected by pricing models required to compete successfully and/or a failure by the Company to achieve
its product cost targets.
- The Company’s gross margin and operating results can fluctuate substantially as a result of the volume of warranty repairs from period to period which are difficult to predict.
- The Company plans to become increasingly dependent upon third parties for product design and supply. Higher than expected costs and delayed or lost revenue may result
if these activities are not transitioned and managed effectively.
- Weaker than expected market acceptance of the new products to be introduced by the Company.
- Product issues that result in increased costs to the Company and/or lost revenue opportunities.
- Longer than expected lead times from component suppliers could result in production delays resulting in delayed or lost revenue.
- Shifts in value of the US dollar relative to the Canadian Dollar may cause the Company’s operating costs to fluctuate significantly.
Additional risks are discussed herein and under "Risk Factors" in the Company’s Annual Information Form available online at www.sedar.com