CORRECTION FROM SOURCE: Enablence Technologies Announces First Quarter 2026 Financial Results

Executive Summary

• Enablence Technologies Inc. released its audited financial statements and MD&A for the first quarter of Fiscal Year 2026 (ended September 30, 2025), reporting a decline in revenue and an increase in net loss due to strategic manufacturing investments and revenue timing.
• The company is aggressively expanding manufacturing capacity, aiming to double monthly wafer starts from 1,500 to 3,000 by the end of the fiscal year to support growing demand in AI, datacom, and sensing sectors.
• Management reaffirmed its fiscal 2026 revenue guidance of $12 million ± $0.5 million, citing strong order books and increasing traction in non-communications markets, particularly AI and LiDAR.

Key Details

• Revenue: $836,000 for Q1 FY2026, a 31% decrease from $1,218,000 in the same period last year.
• Gross Margin: Reported a gross margin loss of $(1,653,000), compared to a loss of $(557,000) in the prior year period. The decline is attributed to revenue timing and a ramp-up in raw materials for at-capacity production.
• Net Loss: Increased to $6,350,000 from $3,914,000 in the prior year, driven by R&D and manufacturing capacity investments.
• Comprehensive Loss: Increased to $5,334,000 (prior year: $4,380,000), impacted by USD strengthening.
• Cash Position: Ended the quarter with $2,757,000 in cash and cash equivalents, down from $5,004,000 as of June 30, 2025.
• Capacity Expansion: Planned to increase monthly wafer starts from 1,500 to 3,000 by the end of the fiscal year through the addition of new tool sets and materials.
• Revenue Guidance: Reaffirmed fiscal 2026 revenue guidance of $12 million ± $0.5 million.
• Business Mix: Non-communications revenue now exceeds 12% of total business, with significant growth in AI and LiDAR applications.
• Regional Trends: Notable uptick in North American module business due to U.S. customers prioritizing supply-chain certainty and re-shoring initiatives.
• Funding: Mention of "accordion funding" provided during the quarter, indicating continued investor support for the turnaround strategy.

Notable Quotes

• Todd Haugen, CEO: "As anticipated, first-quarter revenue was down, reflecting a one-time correction which takes account of the impact of our planned manufacturing expansion... These strategic investments will significantly increase our wafer capacity, positioning Enablence to meet robust demand for both our legacy datacom products and our rapidly growing AI and advanced vision products."
• Todd Haugen, CEO: "We remain committed to our fiscal 2026 revenue guidance of $12 million ± $0.5 million and remain highly confident in the long-range strategic growth plan."
• Todd Haugen, CEO: "Our business remains strong, as evidenced by a strong order book for communications, sensing and compute products... we are also beginning to see traction in sensing and AI business with non-communications revenue now exceeding 12 percent of the business and growing especially in the areas of AI and LiDAR applications."