VANCOUVER, May 10, 2018 /CNW/ - Photon Control Inc.
("Photon Control" or the "Company") (TSX-V: PHO), a leading
developer and supplier of optical measurement technologies to the
global semiconductor industry, has reported its financial results
for the three months ended March 31,
2018.
Highlights:
- Record revenue of $13.9 million
for the quarter and guidance of $14
million to $16 million for Q2
2018;
- Earnings before interest, taxes, depreciation, amortization and
foreign exchange ("EBITDA") of $4.7
million or 34% of revenues for the quarter;
- Record net income of $2.9 million
and basic earnings per share of $0.03
for the quarter;
- Order backlog grew to a record $24.7
million as at Q1, 2018;
- Cash balance of $33.4 million at
March 31, 2018; and,
- Commitment of $3 million to the
share buyback program.
"We continue to drive shareholder value by increasing revenue
and net income," said Scott Edmonds,
Chief Executive Officer. "Our first quarter results and our backlog
growth reflect the shift in the semiconductor equipment market
towards an increased adoption of Photon Control fiber optic
sensors, and the results from investments made in the Company. We
are further pleased to announce that we have committed $3 million towards the share buyback program.
Lastly, we have submitted an application to graduate to the Toronto
Stock Exchange, and anticipate receiving the approval very
soon."
First Quarter 2018 Financial Results
Total revenue for the first quarter of 2018 increased 17% from
$11.9 million in Q1 2017 to a record
$13.9 million. The increase in
revenue was primarily due to strong overall market conditions in
the semiconductor industry, as well as increased share of our
customers' spend on both new and existing products.
First quarter 2018 gross profit increased 11% to $7.9 million compared to Q1 2017, reflecting the
benefit of stronger revenue. Gross margin decreased to 57% for the
quarter compared to 60% in the prior year quarter primarily
attributable to sales mix and foreign exchange.
Operating expenses for the three months ended March 31, 2018 were $3.2
million compared to $4.6
million in Q1 2017. The 2017 operating expenses included
$2.4 million in non-recurring charges
due to the 2017 Photon R&D settlement, and related board and
management changes in the period.
Total comprehensive income was $2.9
million or $0.03 per share for
the three months ended March 31, 2018
compared to $1.7 million or
$0.02 per share in Q1 2017.
EBITDA for the quarter was $4.7
million or 34% of revenue compared to $4.9 million or 41% of revenues in Q1 2017. The
Company defines EBITDA as earnings before finance income, accretion
expense, income tax, depreciation, amortization and foreign
exchange. For the comparative period, EBITDA was further refined to
remove the effect of non-recurring items.
As at March 31, 2018, cash on hand
was $33.4 million compared to
$34.3 million at December 31, 2017. The decrease during the three
months ended March 31, 2018 was
attributable to timing of customer collections.
Order backlog (defined as the value of sales orders scheduled to
be shipped in the next 6 months) increased to $24.7 million at March 31,
2018, an increase of 35% from $18.3
million reported at December 31,
2017. The increase in order backlog reflects the continued
demand in the semiconductor industry, increased confidence in the
Company and early results from investments made in engineering, and
sales and marketing.
Business Outlook
"Looking ahead to Q2
2018 we expect revenue to be in the range of $14 million to $16
million," continued Mr. Edmonds. "For the full year we
remain confident that we will outperform the consensus estimates of
low double digit revenue growth for the semiconductor equipment
market. We also expect to maintain our EBITDA and net income
margins for the year at levels similar to or above those reported
in the prior year."
Equity Grants
The Company announced that
it has granted to certain directors and employees an aggregate of
280,000 stock options and 56,000 restricted share units in the
ordinary course business. The stock options will be issued on
May 14, 2018 and the exercise price
of the options granted will be set at the closing price per share
on May 11, 2018. The stock options
and restricted share units are subject to the terms of the
Company's Stock Option and Restricted Share Unit Plans and any
applicable regulatory approvals.
Conference Call
Photon Control will hold
a conference call today (Thursday, May 10,
2018) at 11:00 a.m. Eastern
time (8:00 a.m. Pacific time)
to discuss these results. The call will be hosted by Scott Edmonds, Chief Executive Officer and
Daniel Lee, Chief Financial Officer
followed by a question and answer period.
Please call the conference telephone number approximately 10
minutes prior to the commencement of the call. The conference
call will be broadcast simultaneously and available for replay
here.
Toll-Free Number: 1-877-407-9716
International Number: 1-201-493-6779
Neither the 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 news release should be read in conjunction with the
Company's condensed interim consolidated financial statements and
related notes, and management's discussion and analysis for the
three months ended March 31, 2018,
copies of which can be found at www.sedar.com.
About Photon Control Inc.
Photon Control Inc.
designs, manufactures and distributes a wide range of optical
sensors and systems to measure temperature and position. These
products are used by the world's largest Wafer Fabrication
Equipment ("WFE") manufacturers and end users in the semiconductor
and solid-state industries. Photon Control Inc.'s high quality
products provide industry leading accuracy, speed and quality in
the most extreme conditions and are backed by a team of experts
providing a variety of on-site and remote services including custom
design, installation, training and support. Headquartered in an ISO
9001:2015 manufacturing facility in Vancouver, BC, Photon Control Inc. is listed
on the TSX Venture Exchange, trading under the symbol ''PHO."
Additional information about the company can be found at
www.photon-control.com/investors.html.
Forward-Looking Statements
This
news release contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation. These
statements generally can be identified by use of forward looking
words such as "may", "will", "expect", "estimate", "anticipate",
"intend", "consider", "believe" or "continue" or the negative
thereof or similar variations. Such forward-looking statements
concern the business and anticipated financial performance of the
Company and include, without limitation, the Company's expectations
with respect to the overall order activity for the balance of the
year and the Company's ability to build on its financial and
operational foundation in the future.
These forward-looking statements are based on certain factors
and assumptions, including, without limitation: the Company's
ability to successfully complete new purchase orders along the
timelines expected; continued and future demand for the Company's
products; continued sales to the Company's major customers; the
continued financial health of the semiconductor industry; and the
Company's ability to continue and further enhance revenue
diversification and open new market opportunities.
Forward-looking statements are subject to a variety of known
and unknown risks, uncertainties and other factors which could
cause actual events or results to differ from those expressed or
implied by the forward-looking statements, including, without
limitation: additional measures and controls may not be implemented
as expected or along the timelines anticipated; uncertainties
relating to the market for the Company's products and maintaining a
stable level of orders; fluctuations in revenue as a result of
volatility in the markets and product mix; risks relating to the
Company's present reliance on its major customers for the majority
of its sales; risks relating to the Company's reliance on the
financial health of the semiconductor industry; risks relating to
the development of competing technologies and the possibility of
increased competition; the effect of slow growth in the United States, the Company's principal
market, as well as other economies and other economic trends and
conditions in the markets that the Company and its customers serve;
risks associated with technical difficulties or delays in product
introductions, improvements, implementation; uncertainties in
product pricing or other initiatives of the Company and its
competitors; uncertainties in factors that may result in a
reduction in capital expenditures and/or delayed buying decisions
affecting demand for the Company's products; risks relating to
currency fluctuations, particularly between the Canadian and
United States dollars; and risks
in pursuing additional development projects to support existing
customers or pursue other business opportunities.
The foregoing assumptions, risks and uncertainties are not
exhaustive of the items that may affect our forward-looking
statements. Should underlying assumptions prove to be incorrect or
one or more of these risks and uncertainties materialize, actual
results may vary materially from those described in the
forward-looking statements. The Company's forward-looking
statements are based on beliefs, expectations and opinions of
management on the date the statements are made.
For the reasons set forth above, readers should not place
undue reliance on forward-looking statements. The Company
undertakes no obligation to update or revise any forward-looking
statements included herein if these beliefs, estimates and opinions
or other circumstances should change, except as otherwise required
by applicable law.
SOURCE Photon Control Inc.