TIDMPPIR TIDMPPIX
RNS Number : 2258L
ProPhotonix Limited
28 July 2011
28 July 2011
ProPhotonix Limited
("ProPhotonix" or "the Company")
HALF-YEAR RESULTS
Robust revenue growth, solid margins and increased LED
production capacity
Revenue increased 25%; gross margin up to 38.9%
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 second quarter
and half-year ended June 30, 2011.
Half-Year 2011:
-- Revenue increased 25% to $8.9 million (H1 2010: $7.1
million), up 20% adjusting for impact of currency fluctuation
-- LED revenue increased 57% to $4.7 million (H1 2010: $3.0
million)
-- Gross profit increased 31% from $2.6 million to $3.5
million
-- Gross profit margin improved to 38.9% (2010: 37.1%)
-- EBITDA profit of $0.3 million vs. $0.2 million loss in 2010
(excluding AIM flotation expenses and facility lease termination
charges)
-- Order bookings of $9.6 million
-- Percentage revenue by market sectors: industrial 73%, medical
19%, and homeland security & defense 8%
-- Percentage revenue by geography: 57% Europe, 35% North
America and 8% Rest of World.
Second Quarter 2011:
-- Revenue increased by 25% to $4.6 million (Q2 2010: $3.7
million), up 15% adjusting for impact of currency fluctuation
-- Revenue up 6% sequentially versus the first quarter of
2011
-- LED revenue increased 41% to $2.4 million (Q2 2010: $1.7
million)
-- Gross profit increased 25% from $1.5 million to $1.8
million
-- Gross profit margin 39.7% (Q2 2010: 39.8% & Q1 2011:
38.0%)
-- EBITDA profit of $0.2 million vs. break-even, net of AIM
expenses, in 2010, and break-even in Q1, 2011
-- Order bookings of $4.6 million; ending backlog of $6.5
million
-- Percentage revenue by market sectors: industrial 69%, medical
24%, and homeland security & defense 7%
-- Percentage revenue by geography: 59% Europe, 31% North
America and 10% Rest of World
-- Appointment of Luster LightTech as the Company's exclusive
distributor of machine vision illumination products in China and
Hong Kong
"We delivered a strong second quarter with 25% revenue growth
and 6% sequential growth, which represents the seventh consecutive
quarter of revenue growth and significant improvement in overall
profitability," said Mark W. Blodgett, Chairman & CEO. "At the
end of the period, ProPhotonix achieved break-even at the operating
income level and its first meaningful EBITDA profit. The Company
continued to see excellent momentum in its growth initiatives,
particularly selling LED products into the medical, solar and
homeland security markets," added Blodgett.
Recent Highlights:
-- Raised $5.1 million (GBP3.3million), in July 2011, through
the placement of new common shares at $0.22 (14 pence) per share
with institutional investors.
ProPhotonix will host a conference call at 14:30 B.S.T (09:30
E.D.T.) on 28 July 2011. The conference call title is 'ProPhotonix
- Interim Results Conference Call' and the details are as
follows:
Local number Toll free
United Kingdom +44 (0) 208 515 2301 +44 (0) 800 358 5271
United States +1 480 629 9677 +1 877 941 1467
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
A copy of the half year results is available on the Company's
website.
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.
Half-Year 2011 Financial Results
Total first half revenue for 2011 was $8.9 million, an increase
of 25% (20%, adjusting for currency fluctuation) compared with $7.1
million in H1 2010. Gross profit was $3.5 million, an increase of
31% compared to $2.6 million in H1 2010. Gross profit margin
increased to 39% from 37% in H1 2010 due to higher volumes, a more
favorable product mix, and productivity improvement initiatives.
Foreign currency exchange impact on gross profit margin was $0.1
million.
Operating expenses, excluding intangible amortization, totaled
$3.5 million versus $3.4 million, net of approximately $0.6 million
of charges related to the London Stock Exchange AIM flotation and a
former production facility lease termination charge, in Q1 2010.
The operating loss was $0.2 million, as compared to $1.0 million
loss in 2010, excluding the AIM flotation expenses and facility
lease termination charges. The EBITDA profit was $0.3 million
versus a 2010 EBITDA loss of $0.2 million which excludes the AIM
flotation expenses and facility lease termination charges. Net loss
was $0.5 million as compared to the 2010 net loss of $2.3 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 $0.6 million.
Second Quarter 2011 Financial Results
Total revenue for the second quarter of 2011 of $4.6 million
increased 25% (up 15%, adjusting for currency fluctuation) from Q2
2010. The growth in revenue comprised an increase in the Company's
LED segment of $0.7 million (+41%) over last year and an increase
in the laser segment of approximately $0.2 million (+11%). The
impact of foreign currency exchange year-on-year was approximately
$0.4 million. Bookings for the second quarter of 2011 were $4.6
million and the order backlog was $6.5 million at June 30,
2011.
Gross profit was $1.8 million for Q2 2011, an increase of 25%
compared to $1.5 million in the Q2 2010. Q1 gross profit margin was
39.7% compared with 39.8% in the comparable quarter in 2010.
Foreign currency exchange negatively impacted gross profit margin
by approximately 0.5%.
Operating expenses, excluding intangible amortization, totaled
$1.7 million, flat to the $1.7 million in Q2 2010, net of AIM
flotation expenses of $0.5 million. Selling expenses increased
approximately 11%, R&D expenses increased approximately 15%,
offset by administration expenses which decreased by approximately
7%, net of the AIM flotation expenses of $0.5 million. The
Operating income was break even as compared to an operating loss of
$0.4 million for the second quarter 2010, net of the AIM flotation
expenses of $0.5 million in 2010.
EBITDA profit of $0.2 million for the quarter compares to a
break-even EBITDA for Q2 2010, net of the AIM expenses. The net
loss of $0.2 million compares to the 2010 net loss of $1.0 million,
which includes a loss on sales of discontinued operations of
approximately $58,000 and a loss from discontinued operations of
approximately $50,000, as well as the AIM flotation expenses of
$0.5 million.
Outlook
The Company continues to exhibit significant improvement in its
overall financial performance as compared to last year benefiting
from the rapid growth of its LED business in diverse markets,
improved productivity in both the laser module and LED production
facilities and ongoing vigilant cost management, particularly with
regard to continuing general and administrative expenditures.
During the first half, the Company reorganized its direct sales
force along geographic rather than product lines to improve
penetration into new OEM accounts. Further, it rationalized
distributor channels in those markets where the Company does not
sell direct and most recently added significant distribution
capability in Asia with the appointment of China's leading
distributor of machine vision products, Luster LightTech, which has
a rapidly growing sales force knowledgeable in the sales of the
Company's products.
Having completed, on July 13 2011, a $5.1 million placement of
new common shares with several leading institutional investors, the
Company intends to make further investments in product management,
particularly medical and industrial illumination, our direct sales
force and R & D to further expand the Company's product
offering and generate long term revenue growth. ProPhotonix's
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.
The Company uses EBITDA (earnings before interest, taxes,
depreciation, amortization, stock-based compensation and impairment
charges) as a non-GAAP financial measure in this press release. A
reconciliation of EBITDA to net loss for the second quarter and
half-year ended 2011 is as follows:
Three Months Ended Six Months Ended
--------------------- -------------------
($ in thousands)
(Unaudited)
------------------------------------------
June 30,
------------------------------------------
2011 2010 2011 2010
---------- --------- -------- ---------
Net Loss $(219) $(983) $(482) $(2,301)
Loss on sale of discontinued
operations - 58 - 58
(Income) /loss from
discontinued operations (30) 50 19 109
Plus:
Interest and other
expense/(income), net 176 (103) 197 418
Depreciation 89 123 167 248
Intangible asset amortization 75 96 156 195
Stock based compensation 85 162 148 282
Taxes 73 (1) 73 (65)
Amortization of Debt Discount
& Financing Costs - 94 - 193
---------- --------- -------- ---------
EBITDA Profit / (Loss) 249 (504) 278 (863)
---------- --------- -------- ---------
AIM Listing expenses - 511 - 511
Facility lease termination charge - - - 115
Adjusted EBITDA Profit (Loss) $249 $7 $278 $(237)
===== === ===== =======
Consolidated Statement of Operations
(Unaudited)
($ In thousands except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
---------- ---------- ---------- ----------
Net Sales $4,576 $3,665 $8,914 $7,147
Cost of Sales 2,759 2,208 5,449 4,498
---------- ---------- ---------- ----------
Gross Profit 1,817 1,457 3,465 2,649
Research & Development
Expenses 234 203 473 356
Selling, General &
Administrative Expenses 1,508 2,043 3,029 3,686
Amortization of Intangible
Assets 75 96 156 195
Operating Loss - (885) (193) (1,588)
Interest Income & Other
Income/(Expense) (81) 235 (6) (92)
Amortization of Debt Discount
and Financing Costs - (94) - (193)
Interest Expense (95) (132) (191) (326)
---------- ---------- ---------- ----------
Loss Before Taxes from
Continuing Operations (176) (876) (390) (2,199)
Tax Provision (Benefit) 73 (1) 73 (65)
---------- ---------- ---------- ----------
Net Loss from Continuing
Operations (249) (875) (463) (2,134)
---------- ---------- ---------- ----------
Loss on Sale of Discontinued
Operations, net of tax - (58) - (58)
Income / (Loss) from
Discontinued Operations, net
of tax 30 (50) (19) (109)
---------- ---------- ---------- ----------
Net Loss $(219) $(983) $(482) $(2,301)
========== ========== ========== ==========
Loss Per Share
Basic and diluted net loss per
share from continuing
operations ($0.00) ($0.02) ($0.01) ($0.05)
Basic and diluted net loss per
share from loss on sale of
discontinued operations ($0.00) ($0.00) ($0.00) ($0.00)
Basic and diluted net loss per
share from discontinued
operations $0.00 ($0.00) ($0.00) ($0.00)
Basic and diluted net loss per
share $(0.00) ($0.02) ($0.01) ($0.05)
Basic and diluted weighted
average shares outstanding 52,559,499 44,190,092 52,455,575 44,176,681
FINANCIAL STATEMENTS
PROPHOTONIX LIMITED
CONSOLIDATED BALANCE SHEETS
(unaudited)
For the Periods Ended June 30, 2011 and
December 31, 2010 2011 2010
In thousands
(except share and per share
data)
Assets
Current assets:
Cash and cash equivalents $ 568 $ 1,811
Accounts receivable, less allowances of
$34 in 2011 and $47 in 2010 2,423 2,023
Inventories 2,052 1,892
Prepaid expenses and other current
assets 195 229
Total current assets 5,238 5,955
Net property, plant and equipment 838 906
Goodwill 508 468
Acquired intangible assets, net 477 610
Other long-term assets 41 66
Total assets $ 7,102 $ 8,005
Liabilities and Stockholders' Deficit
Current liabilities:
Current portion of long-term debt $ 600 $ 600
Revolving credit facility 798 641
Capital lease obligations 10 24
Accounts payable 1,469 2,003
Income taxes payable 73 -
Accrued expenses 1,137 1,368
Total current liabilities 4,087 4,636
Long-term debt, net of current portion 3,332 3,407
Other long-term liabilities 178 150
Total liabilities 7,597 8,193
Commitments and contingencies
Stockholders' deficit:
Common stock, par value $0.001
150,000,000 shares authorized at June
30, 2011 and 100,000,000 authorized at
December 31, 2010; 52,810,174 shares
issued and outstanding at June 30,
2011 and 52,510,174 shares issued and
outstanding at December 31, 2010 53 53
Paid-in capital 105,923 105,678
Accumulated deficit (106,657 ) (106,175 )
Accumulated other comprehensive income 186 256
Total stockholders' deficit (495) (188)
Total liabilities and stockholders'
deficit $ 7,102 $ 8,005
PROPHOTONIX LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Periods Ended June 30 2011 2010
In thousands
Operations
Net loss $ (482) $ (2,301)
Loss from discontinued operations, net of tax (19) (109)
Loss on sale of discontinued operations, net of
tax - (58)
Loss from continuing operations (463) (2,134)
Adjustments to reconcile net loss to net cash used
in operating activities:
Stock-based compensation expense 148 282
Depreciation and amortization 323 443
Amortization of debt discount and
financing costs - 193
Non cash interest income - (2)
Provision for inventories 27 19
Provision for bad debts 12 37
Deferred taxes - (65)
Other change in assets and liabilities:
Accounts receivable (283) (925)
Inventories (81) (251)
Prepaid expenses and other current assets 43 264
Accounts payable (634) 463
Income taxes payable 73 -
Accrued expenses (294) 329
Other assets and liabilities (2) -
Net cash used in continuing operations (1,131) (1,347)
Net cash used in discontinued operations (19) (167)
Net cash used in operating activities (1,150) (1,514)
Investing
Proceeds from disposal of assets - 3
Financing obligation payments - (73)
Purchase of property, plant and equipment (48) (79)
Net cash used in investing activities (48) (149)
Financing
Net proceeds from sale of common stock 98 -
Borrowings of revolving credit facilities, net 134 90
Principal repayment of long-term debt (314) (1,351)
Net cash used in financing activities (82) (1,261)
Effect of exchange rate on cash 37 109
Net change in cash and equivalents (1,243) (2,815)
Cash and equivalents at beginning of year 1,811 4,478
Cash and equivalents at end of period $ 568 $ 1,663
Supplemental of cash flow information:
Cash paid for interest $ 191 $ 369
Cash paid for income tax 15 -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMGZNRNLGMZM
Prophotonix (LSE:PPIX)
Historical Stock Chart
From Oct 2024 to Nov 2024
Prophotonix (LSE:PPIX)
Historical Stock Chart
From Nov 2023 to Nov 2024
