Copper Alloys Sales Up 31% Q/Q as the Division Undertakes a $5.5 Million Expansion
IBC’s Consolidated Revenue Jumps by 39% Q/Q
FRANKLIN, Ind., Aug. 03, 2021 (GLOBE NEWSWIRE) — IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) is pleased to report that rising global demand for semiconductor chips is driving higher sales for beryllium-aluminum (“BeAl”) products used in the semiconductor manufacturing industry.
Preliminary, unaudited figures for the year ended June 30, 2021, show that unit sales of BeAl components for semiconductor manufacturing, produced by IBC’s Engineered Materials Division in Massachusetts, rose by approximately 115% and 78% in the quarter and year ended June 30, 2021. In the 12 months prior to June 30, 2021, unit sales of these components grew by approximately 793%.
Overall, Engineered Materials Division revenue increased to $3.2 million and $8.6 million, respectively, for the quarter and year ended June 30, 2021, representing increases of approximately 52% and 25% over the comparable prior-year periods. Gross margin for the Division for those periods was 16.2% and 26.7%, respectively.
“The current shortage of many semiconductor chips is creating real-world consequences for consumers around the world, given that these chips are used in everything from consumer electronics to 5G networks to vehicles to toothbrushes,” said Mark A. Smith, CEO and Chairman of IBC. “Not only is the current chip shortage driving global demand sharply higher, but long-term trends for semiconductor chip demand also point to robust growth.”
For example, the World Semiconductor Trade Statistics (“WSTS”) organization has forecast that annual global sales of chips will increase 19.7% in 2021 and 8.8% in 2022, growing to a US$573 billion global market.
“This is why IBC is working hard to continue expanding our beryllium-aluminum production capacity, both for the semiconductor industry and for our defense sector customers,” Mr. Smith said.
Copper Alloys Division Sales Also Trending Higher
IBC’s Copper Alloys Division also is seeing sales trending higher, Mr. Smith added, with revenue in the quarter ended June 30, 2021, rising to $3.9 million, a 31% jump over the quarter ended June 30, 2020, and a 19% sequential increase over the prior quarter. For the year ended June 30, 2021, Copper Alloy Division revenue was $13.2 million, which was 7.5% lower than FY2020 revenue, a result driven largely by the macroeconomic impacts of the COVID-19 pandemic. Gross margin for the Cooper Alloys Division in the quarter and year ended June 30, 2021, was 15.3% and 14.0%, respectively.
The Copper Alloy Division’s flagship production facility in Franklin, Ind. is currently undergoing a $5.5 million, 32,000-square-foot expansion. The project will allow the Company to consolidate current copper foundry operations at a plant in Pennsylvania into the Franklin plant. This expansion/consolidation project is expected to expand IBC's manufacturing capabilities as well as generate significant fixed cost savings.
Q/Q Consolidated Revenue Jumps by 39.3%
On a consolidated basis, IBC revenue in the quarter and year ended June 30, 2021, was $7.0 million and $21.8 million, respectively, which represented a 39.3% and 3.1% increase over the comparable prior-year periods, and a 30.1% sequential increase over the prior quarter. Consolidated gross margin for the quarter and year ended June 30, 2021, was 15.7% and 19.0%.
All figures reported above with respect to the fiscal quarter and year ended June 30, 2021, are preliminary and are unaudited and subject to change and adjustment as the Company prepares its consolidated financial statements for the quarter and year ended June 30, 2021. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. The Company does not necessarily intend to provide preliminary results in the future. The preliminary results provided in this news release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws, are based on several assumptions, and are subject to a number of risks and uncertainties. Actual results may differ materially.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
"Mark A. Smith”
Mark A. Smith, CEO & Chairman of the Board
Mark A. Smith, Chairman of the Board
Jim Sims, Investor and Public Relations
IBC Advanced Alloys Corp.
@IBCAdvanced $IB.TO $IAALF
ABOUT IBC ADVANCED ALLOYS CORP.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, and Pennsylvania. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
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. This disclosure contains forward-looking statements, including those regarding expected financial results for the quarter and year ended June 30, 2021, expected growth in semiconductor chip demand and forecasts related to the annual global sales of chips. Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’ and similar expressions. Although IBC believes that the expectations reflected in these forward-looking statements are reasonable, forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statement. The forward-looking statements made by the Company in this press release are based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. As a result, we cannot guarantee that any forward-looking statements will materialize and we caution you against relying on any of these forward-looking statements. IBC makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in IBC’s filings, including its Annual Information Form for the fiscal year ended June 30, 2020, available at www.sedar.com.