SALEM, NH--(Marketwire - Oct 27, 2011) -
27 October 2011
ProPhotonix Limited
("ProPhotonix" or "the Company")
THIRD QUARTER AND YEAR-TO-DATE RESULTS
Improved financial performance on 16% revenue increase
ProPhotonix Limited, (London Stock Exchange - AIM: PPIX and PPIR, OTC:
STKR.PK), a designer and manufacturer of LED light engines and laser
diodes modules with operations in Ireland and the U.K., today announces
its financial results for the third quarter and year-to-date September
30, 2011.
Year-to-Date 2011:
* Revenue increased 22% to $13.5 million ( 2010: $11.0 million), up
16% adjusting for impact of currency fluctuation
* LED revenue increased 41% to $6.9 million ( 2010: $4.9 million)
* Gross profit increased 24.4% to $5.2 million (2010: $4.2 million)
* Gross profit margin improved to 38.9% (2010: 38.0%)
* EBITDA of $0.5 million vs. $0.2 million loss in 2010 (excluding
AIM flotation expenses and facility lease termination charges)
* Order bookings of $13.9 million
* Percentage revenue by market sectors: industrial 74%, medical
17%, and homeland security & defense 9%
* Percentage revenue by geography: 57% Europe, 33% North America
and 10% Rest of World
Third Quarter 2011:
* Revenue increased by 16% to $4.5 million (Q3 2010: $3.9 million),
up 10% adjusting for impact of currency fluctuation
* LED revenue increased 16% to $2.2 million (Q3 2010: $1.9 million)
* Gross profit increased 13.5% to $1.8 million (Q3 2010: $1.6
million)
* Gross profit margin 38.9% (Q3 2010: 39.9%)
* EBITDA of $0.2 million vs. break-even, net of AIM expenses in
2010
* Order bookings of $4.4 million; ending backlog of $6.1 million
* Percentage revenue by market sectors: industrial 75%, medical
14%, and homeland security & defense 11%
* Percentage revenue by geography: 55% Europe, 34% North America
and 11% Rest of World
* Raised $5.1 million (GBP3.3million), through the placement of new
common shares at $0.22 (14 pence) per share with institutional
investors
Commenting on the results, Mark W. Blodgett, Chairman & CEO of
ProPhotonix, said: "We delivered a strong third quarter with 16%
revenue growth, despite the negative impact from foreign currency
exchange due to the strengthening of the dollar in September, and a
delay in shipments to two medical customers.
Several milestones were met during the quarter including reaching
breakeven operating profitability and a significant improvement in
EBITDA profitability. Third quarter EBITDA was approximately $200,000,
which was net of $60,000 of recruitment fees for new US sales
personnel hired at the end of the quarter and $50,000 of reserve
provisions."
Enquiries:
ProPhotonix Limited Tel: +44 (0)12 7971 7170
Mark W. Blodgett, CEO ir@prophotonix.com
Brewin Dolphin Limited Tel: +44 (0)113 241 0130
Neil Baldwin / James White
Cubitt Consulting Tel: +44 (0) 20 7367 5100
Chris Lane / Alice Coubrough
RD:IR Tel: +44 (0) 20 7492 0500
Isabel Richardson
About ProPhotonix
ProPhotonix Limited, headquartered in Salem, New Hampshire, is an
independent designer and manufacturer of diode-based laser modules and
LED systems for industry leading OEMs and medical equipment companies.
In addition, the Company distributes premium diodes for Opnext, QSI,
Sanyo, and Sony. The Company serves a wide range of markets including
the machine vision, industrial inspection, defense, sensors, and
medical markets. ProPhotonix has offices and subsidiaries in the U.S.,
Ireland, U.K., and Europe. For more information about ProPhotonix and
its innovative products, visit the Company's web site at
www.prophotonix.com .
Year-to-Date 2011 Financial Results
Total year-to-date revenue in 2011 was $13.5 million, an increase of
22% (16%, adjusting for currency fluctuation) compared with $11.0
million in 2010. Gross profit was $5.2 million, an increase of 24%
compared to $4.2 million in 2010. Gross profit margin increased to
38.9% from 38% in 2010 due to higher volumes, a more favorable product
mix, and productivity improvement initiatives. Foreign currency
exchange impact on gross profit margin was $0.2 million.
Operating expenses, excluding intangible amortization, totaled $5.2
million versus $5.2 million, net of approximately $0.8 million of
charges related to the London Stock Exchange AIM flotation and a
facility lease termination charge. The operating loss was $0.2
million, as compared to $1.3 million loss in 2010, excluding the AIM
flotation expenses and facility lease termination charges. EBITDA was
$0.5 million versus a 2010 Adjusted EBITDA loss of $0.2 million which
excludes the AIM flotation expenses and facility lease termination
charges. Net loss was $0.6 million including tax provision of $0.1
million in 2011 and compares to the 2010 net loss of $2.8 million,
which includes a loss on sale of discontinued operations in the amount
of $0.1 million and a loss from discontinued operations in the amount
of $0.1 million, as well as the AIM flotation expenses and facility
lease termination charges of $0.8 million.
Third Quarter 2011 Financial Results
Total revenue for the third quarter of 2011 of $4.5 million increased
16% (up 10%, adjusting for currency fluctuation) from Q3 2010.Revenue
growth came from increases in the Company's LED segment of $0.3 million
(+16%) and its laser segment of approximately $0.3 million (+16%) over
last year. The impact of foreign currency exchange year-on-year was
approximately $0.2 million. Bookings for the third quarter of 2011 were
$4.4 million and the order backlog was $6.1 million at September 30,
2011.
Gross profit was $1.8 million for Q3 2011, an increase of 14% compared
to $1.6 million in Q3 2010.Q3 gross profit margin was 38.9% compared
with 39.9% in the comparable quarter in 2010. Foreign currency exchange
favorably impacted gross profit margin by approximately 0.1%.
Operating expenses, excluding intangible amortization, totaled $1.7
million, a decrease of 5% compared to the $1.8 million in Q3 2010, net
of AIM flotation expenses of $0.2 million. Selling expenses increased
approximately 5%; R&D expenses increased approximately 43%, offset by
administration expenses, which decreased by approximately 17%, net of
the AIM flotation expenses of $0.2 million. The company achieved
break-even at the operating level in Q3 2011 as compared to an
operating loss of $0.3 million for the third quarter 2010, net of the
AIM flotation expenses of $0.2 million in 2010.
EBITDA of $0.2 million for the quarter compares to a break-even
Adjusted EBITDA for Q3 2010, net of the AIM expenses. The net loss of
$0.1 million compares to the 2010 net loss of $0.5 million, which
includes a loss from discontinued operations of approximately $17,000,
as well as the AIM flotation expenses of $0.2 million.
Outlook
The Company continues to exhibit significant improvement in its overall
financial performance, as compared to last year, benefiting from
continuing revenue growth in both its laser and LED systems
businesses. Profitability continues to improve, driven by improved
productivity in both Cork and Stansted facilities and ongoing vigilant
cost management, particularly with regard to G&A expenditures. During
the third quarter, the Company significantly increased its North
American sales force, including a new sales manager and is in the
process of selectively adding to its R&D team, adding medical product
management expertise and augmenting its European sales force. Finally,
the Company is in the process of adding distribution channels in both
Korea and Taiwan, to complement the recent appointment of Luster
LightTech, China's leading distributor of machine vision products.
ProPhotonix continues to benefit from growth in the medical, solar and
home land security markets, and with these proposed investments we look
to expand our customer base in Europe, US and Asia.
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements other than
statements of historical fact, including without limitation, those with
respect to ProPhotonix's goals, plans and strategies set forth herein
are forward-looking statements. The following important factors and
uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking statements:
uncertainty that cash balances may not be sufficient to allow
ProPhotonix to meet all of its business goals; uncertainty that
ProPhotonix's new products will gain market acceptance; the risk that
delays and unanticipated expenses in developing new products could
delay the commercial release of those products and affect revenue
estimates; the risk that one of our competitors could develop and bring
to market a technology that is superior to those products that we are
currently developing; and ProPhotonix's ability to capitalize on its
significant research and development efforts by successfully marketing
those products that the Company develops. Forward-looking statements
represent management's current expectations and are inherently
uncertain. All Company, brand, and product names are trademarks or
registered trademarks of their respective holders. ProPhotonix
undertakes no duty to update any of these forward-looking statements.
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures, such as EBITDA, to
complement its consolidated financial statements presented in
accordance with GAAP. Non-GAAP financial measures do not have any
standardized definition and, therefore, are unlikely to be comparable
to similar measures presented by other reporting companies. These
non-GAAP financial measures are intended to supplement the user's
overall understanding of the Company's current financial and operating
performance and its prospects for the future. Specifically, the Company
believes the non-GAAP results provide useful information to both
management and investors by identifying certain expenses, gains and
losses that, when excluded from the GAAP results, may provide
additional understanding of the Company's core operating results or
business performance, which management uses to evaluate financial
performance for purposes of planning for future periods. However, these
non-GAAP financial measures are not intended to supersede or replace
the Company's GAAP results.
To view full announcement click on link below:
http://www.rns-pdf.londonstockexchange.com/rns/9199Q_1-2011-10-26.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
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