Enablence Technologies Inc. Announces Financial Results for Second Quarter of Fiscal 2025

Ottawa, Ontario--(Newsfile Corp. - February 28, 2025) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a leading provider of optical chips and sub systems that performs communications, sensing and computing in the datacom, telecom, automotive and artificial intelligence (AI) applications has filed its unaudited interim consolidated financial statements for the six months ended December 31, 2024 ("Q2 2025") and related management's discussion and analysis and certifications (collectively, the "Financial Statements"). Electronic copies of the Financial Statements are available on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile.

Commenting on the Company's Q2 2025 performance, CEO, Todd Haugen stated, "We continue to successfully execute our growth plan as evidenced by another strong quarter in which sales of our datacom, and advanced vision products grew rapidly. This enabled us to meet our expectations for the quarter ended December 31, 2024. I am also pleased to report that our order book continues to strengthen with demand and line of site well into the future across our optical communications, sensing and compute businesses."

"For the quarter ended, our ability to satisfy strong customer demand for our products was constrained by the speed at which we were able to bring online new tool sets, processes and other manufacturing infrastructure. We expect to complete fundamental infrastructure improvements in Q4 after which we expect to accelerate efforts to satisfy strong demand from legacy and new customers. Of significance, is our ability to complete the onboarding of a key photonics semiconductor customer which supplies advanced optical products to enable high speed, high-performance AI systems for datacentre infrastructure. We expect to see results from this transformative partnership in H1FY26."

"Our core strategy remains to aggressively drive more product to market and to grow our footprint beyond our core optical communications business to now include a growing share of the optical sensing and optical compute businesses. As such, we expect to see significantly increased deliveries in Q4 2025."

Financial Highlights

Enablence is pleased to provide the following highlights for Q2 2025 (all dollar figures are expressed in thousands of United States dollars):

• Revenue Growth: Revenue for the three months ended December 31, 2024 was $1,380 as compared to $340 for the same period in the prior year, an increase of $1,040, or 306%. For the six months ended December 31, 2024, revenue was $2,600, up 360% from $565 in the same period last year​.
• Gross Margin Improvement: The Company's gross margin improved by $61, with a reported gross margin of $(473) for the quarter, compared to $(534) in the previous year. This reflects improved yield and manufacturing efficiency.
• Net Loss Increase: Enablence reported a net loss of $4,036, compared to a $3,804 net loss in the same quarter last year, an increase of 6%. The slightly higher loss was driven by investments in Sales & Marketing and R&D​.
• Improved Comprehensive Loss Position: The Company's comprehensive loss improved to $1,887 for the quarter, compared to $4,231 in the same period last year, driven by foreign exchange translation gains of $2,149​.
• Stronger Cash Position: Enablence ended the quarter with $3,387 million in cash and cash equivalents, a significant increase from $614 as of June 30, 2024, supporting its ongoing operations and future growth initiatives.
• Continuing Investment: Investors injected another $6,811 in new funding over the period as the Company continues to invest in manufacturing capacity and R&D as its products continue to gain significant traction.

Outlook

Based on the Company's current business outlook and projections, management expects the overall performance for the fiscal year ending June 30, 2025 to be as follows:

• the Company's revenue target remains $6M +/- $0.5M for the fiscal year ending June 30, 2025; and
• the Company expects positive gross margins for the fiscal year ending June 30, 2025.

The "Financial Highlights" above are qualified in their entirety by the Financial Statements, which are available on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile. For additional information about the Company, please refer to public disclosure record of the Company available on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile, along with the investor presentation of the Company, which is available on Enablence's website (www.enablence.com/investors) in the "Corporate - Investors" tab.

About Enablence Technologies Inc.

Enablence is a publicly company with its common shares listed for trading through the facilities of the TSX Venture Exchange (TSXV: ENA) that designs, markets and sells optical chips and sub systems, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips for datacom, telecom, automotive and artificial intelligence (AI) applications. Enablence products serve a global customer base, primarily focused today on data center and other rapidly growing end markets. Enablence also works with customers that have emerging market uses for its technology, including medical devices, automotive LiDAR, and virtual and augmented reality headsets. In select strategic circumstances, the Company also uses its proprietary, non-captive fabrication plant in Fremont, California to manufacture chips designed by third party customers. For more information, visit: www.enablence.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking statements regarding the Company (including under the heading "Outlook") based on current expectations and assumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including: the Company's ability to execute its business and growth plans; continued sales growth; the strength of the Company's order book; demand for the Company's products; continued customer demand for our products; expectations regarding infrastructure improvements; our ability (if at all) to onboard key customers; increased deliveries for Q4 2025 (if at all); expectations regarding revenue targets and positive margins for the fiscal year ending June 30, 2025. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. These statements are based on current expectations that involve several risks and uncertainties which could cause actual results to differ from those anticipated, including: revenues; gross margin; investments; cash position; continuing investments; foreign exchange rate; global markets and interest rates. Although the Company believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. We caution our readers of this news release not to place undue reliance on our forward-looking statements as a few factors could cause actual results or conditions to differ materially from current expectations. Additional information on these and other factors that could affect the Company's operations are set forth in the Company's public disclosure record available on SEDAR+ (www.sedarplus.ca) under Enablence's issuer profile.

Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether because of new information, future events or otherwise.

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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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