SALEM, NH--(Marketwired - Sep 7, 2017) - ProPhotonix Limited (
PROPHOTONIX ANNOUNCES INTERIM RESULTS FOR THE HALF YEAR
ENDED JUNE 30, 2017
(Salem, New Hampshire, September 7, 2017) ProPhotonix Limited (
Recent Operational Highlights
Tim Losik, President & CEO, commented:
"The first half of 2017 was a pivotal period for the Company as we deleveraged our balance sheet by paying off all of the term debt and launched new product lines to complement our existing award winning products. Sales in the first half of 2017 were up 5.5% primarily due to an increase in LED product sales offsetting a modest decline in laser and laser diode sales. Sales to the medical market were up 78% from the first half of 2016, and represents 22% of total sales (2016: 13%). The increase was primarily due to LED product sales including to a new Fortune 50 customer. Operating income decreased to $0.6 million from $0.7 million in 2016, mainly due to the increased Sales, General and Administrative costs plus expenses and investments in the Company to support the future growth of the business, including: expansion of the sales organization in the fourth quarter of 2016 which increases sales expense; increased engineering and development costs associated with several large original equipment manufacturing ("OEM") projects; and the continuing investment in the UV LED product development. These increased expenses are a result of the Company's focus on investing for growth.
"The Company's balance sheet continues to strengthen with all term debt paid off as of June 30, 2017. Also, as at June 30, 2017, the Company had $298,000 borrowing availability on its Sales Finance facility through Barclays Bank. In addition, the Company is currently in discussions with one or more lenders to secure further financing to make investments in plant, equipment, and for working capital purposes. The Directors are comfortable with the cash flow of the business considering its plans and available credit facilities.
"While the Company does not provide forecasts without sufficient visibility to allow for reasonable certainty of the forecast, the Board expects that revenue and EBITDA will be in line with full year market expectations."
"Repayment of term debt as of June 30, marks the successful completion of the restructuring program initiated in 2013. It also marks a turning point in strategy as we change priority from capital repositioning and debt repayment, to investment for growth. This has impacted marginally on operating income through increased sales, general and administrative and product development costs however, in the Board's opinion, it is justified by both current product development and developing customer relations. The recent investment from four well regarded institutions to take a 22% stake in ProPhotonix from 600 Group demonstrates strong shareholder support for this change in strategy.
"The strategy of the Company remains established in its OEM heritage as well as the development of products directed at specific markets. ProPhotonix has made and will continue to make investments in commercially attractive OEM opportunities and product development including UV LED, multi-wavelength devices and laser technology advances, in the fulfillment of our strategy. We continue to concentrate our engineering capacity in these defined projects and areas that we believe are poised for fast market expansion.
"The first of these is the UV LED and laser market for various applications including: printing, curing, bonding, 3D printing, bio-luminescence, medical microscopy and other applications. The Company has launched several versions of its COBRA Cure™ product and continues to work with many potential customers in their applications using this technology. We plan to continue to launch new higher power products while continuously enhancing our current product lines to serve this market during 2017 and beyond.
"ProPhotonix also continues to focus on the market requirements for multi-wavelength devices and systems, both laser and LED solutions. Increasingly, customers are seeking multi-wavelength solutions requiring innovative optics, complex electronics, on-board sensing capabilities and sophisticated software control. We see opportunities which include a broad range of applications in printing, microscopy, industrial inspection and sorting, solar simulation and security markets. As announced in January 2017, the Company introduced the Cobra Multispec, a 12-wavelength modular designed line light as a follow-on product to the Cobra RGB. We intend to continue to enhance and expand this offering as market demand dictates."
Tim Losik, President & CEO
Tel: +1 603 893 8778
Stockdale Securities Limited
Tom Griffiths / David Coaten
Nominated Adviser and Broker
Tel: +44 (0) 20 7601 6100
This announcement contains inside information for the purpose of Article 7 of Regulation (EU) No 596/2014
ProPhotonix Limited, headquartered in Salem, New Hampshire, is a high technology designer and manufacturer of LED illumination systems and laser diode modules for industry leading OEMs and medical equipment companies. In addition, the Company distributes premium diodes for Ushio (formerly OCLARO), Osram, QSI, Panasonic, and Sony. The Company serves a wide range of markets including the machine vision, industrial inspection, security, 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.
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