TORONTO, Sept. 18, 2019 /CNW/ - Baylin Technologies Inc.
(TSX: BYL) (the "Company" or "Baylin").
Challenging industry dynamics have continued to soften demand
from several of Baylin's primary customers. As a result, third
quarter financial metrics are expected to fall below consensus
expectations. Management believes this situation is transitory and
is focused on several initiatives to improve its performance.
Further to the press release issued earlier today regarding the
Company's decision to invest in Massive MIMO production in its new
facility in Vietnam, Baylin will
incur a portion of the C$9.0 million
in expenses associated with the facility build in Q3 2019. These
expenses were not anticipated in the Company's 2019 budget and the
revenue expected from this investment will not be realized until
2020.
Additionally, Baylin's Infrastructure Group has seen a softening
in its business with its tier one telco customers experiencing a
delay and/or reduction in capital expenditures until 2020 as well
as a postponement of a significant base station project. The
Company expects its Infrastructure Group's revenue performance will
be below budget for this fiscal year.
Compounding this situation are the ongoing historical legacy
issues of Advantech Wireless which are progressing slower than
anticipated. Management stands by its previously stated goals for
cost synergies and is seeing accelerated revenue opportunities in
adjacent markets where Advantech has not traditionally
participated.
As a result of these factors, the Company currently expects Q3
revenue to be in the range of C$35-37
million and Q3 adjusted EBITDA (adjusted EBITDA is a non-GAAP
measure and refers to operating income (loss) plus depreciation and
amortization plus non-recurring items ) to be in the range of
$1.0-1.5 million.
"While Q3 2019 results will not meet expectations, we continue
to be optimistic about the acceleration of new programs, new
contract wins and new major 5G Massive MIMO opportunities", stated
Randy Dewey, President and CEO. "We
continue to invest in high growth areas and are entering into
massive new addressable markets."
Baylin will release 2019 third quarter financial results on
Tuesday November 5th, 2019 after
market close and will host a conference call to discuss these
results on Wednesday November 6th,
2019 at 8:00 a.m. (ET). The
call will be hosted by Randy Dewey,
President and Chief Executive Officer; Michael Wolfe, Chief Financial Officer and
Daniel Kim, EVP Corporate
Development. All interested parties are invited to participate.
Conference Call Details
DATE:Wednesday November 6,
2019
TIME: 8 a.m. Eastern Standard
Time
DIAL IN NUMBER: 647-427-7450
1-888-231-8191
CONFERENCE ID#: 6693762
Webcast URL (EN):
https://wcc.on24.com/webcast/previewlobby?e=1924935&k=63E49B67E978B08F233F6D8F3C8610CA
ABOUT BAYLIN
Baylin (TSX: BYL) is a diversified leading global wireless
technology management company. Baylin focuses on research, design,
development, manufacturing and sales of passive and active RF
products and services. We aspire to exceed our customers' needs and
anticipate the direction of the market.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
"forward-looking statements" that involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, objectives or achievements of the Company, or industry
results, to be materially different from any future results,
performance, objectives or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects,"
"anticipates," "believes," "intends," "estimates,", "predicts,"
"potential," "targeted," "plans," "possible" and similar
expressions, or statements that events, conditions or results
"will," "may," "could" or "should" occur or be achieved. The
forward-looking statements in this press release include, but are
not limited to, statements regarding the Company's expected revenue
from the Company's investment in Massive MIMO production facilities
and revenue and Adjusted EBITDA for Q3 2019 and other statements
regarding the Company's plans, objectives and expectations. These
statements reflect the Company's current views regarding future
events and operating performance and are based on information
currently available to the Company as of the date of this press
release. These forward-looking statements involve a number of
risks, uncertainties and assumptions and should not be read as
guarantees of future performance or results and will not
necessarily be accurate indications of whether or not such
performance or results will be achieved. Those assumptions and
risks include, but are not limited to, the Company's ability to
successfully allocate capital as needed and to develop new
products, as well as the fact that the Company's results of
operations and business outlook are subject to significant risk,
volatility and uncertainty. Additional factors that could cause
actual results, performance or achievements to differ materially
include, but are not limited to the risk factors discussed in the
Company's Annual Information Form dated March 13, 2019 which is available on the
Company's profile at www.sedar.com. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements and other cautionary statements or factors
contained herein, and there can be no assurance that the actual
results or developments will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, the Company. Unless required by applicable securities
law, the Company does not intend and does not assume any obligation
to update these forward-looking statements.
NON-GAAP MEASURES
Measures that are not prescribed by Canadian generally accepted
accounting principles ("GAAP") and as such may not be comparable to
similar measures presented by other companies. Management believes
these measures are commonly employed to measure performance in its
industry and are used by analysts, investors, lenders and
interested parties to evaluate financial performance and the
Company's ability to incur and service debt to support its business
activities.
While management believes that non-GAAP measures are helpful
supplemental information, they should not be considered in
isolation as an alternative to net income, cash flows generated by
operating, investing or financing activities, or other financial
statement data presented in accordance with GAAP.
SOURCE Baylin Technologies Inc.