Welcome!

.NET Authors: Jim Kaskade, Adine Deford, TJ Randall, Sandi Mappic, Ivan Antsipau

News Feed Item

ProPhotonix Limited - Annual Financial Report

SALEM, NH -- (Marketwired) -- 03/25/14 --




                          ProPhotonix Limited
                    ("ProPhotonix" or "the Company")

     PRELIMINARY RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013

ProPhotonix Limited (London Stock Exchange - AIM: PPIX and PPIR, OTC:
STKR), a designer and manufacturer of LED illumination systems and
laser diode modules with operations in Ireland and the United Kingdom,
today announces its unaudited preliminary results for the year ended
December 31, 2013.

Annual General Meeting

The Company will hold the Annual General Meeting of the Shareholders on
May 22, 2014 at 10:00 AM London Summer Time at the offices of K&L Gates
LLP, One New Change, London EC4M 9AF. The Record date is set at April
7, 2014 for all shareholders of record.

Financial Highlights

- Revenue increased 12% to $15.6 million
- Gross profit increased 38.6% to $6.0 million
- Gross profit margin improved to 38.3%
- Operating loss declined 62% to $1.2 million(1)
- EBITDA loss declined 73.8% to $0.7 million(1)
- Order bookings increased 17% to $17.6 million
- Backlog at December 31, 2013 of $6.9 million grew 31%
- Percentage revenue by market sectors: industrial 79%, medical
  16%, and homeland security & defense 5%
- Percentage revenue by geography: 52% Europe, 31% North America
  and 17% Rest of World
- On June 20, 2013, the Company secured new loan financing with net
  availability of $2.5 million through an existing lender to the
  Company alongside a new lender.
- On November 29, 2013, the Company entered into an amendment to an
  existing revolving credit facility with Barclays Bank to increase
  the existing credit facility from GBP650,000 ($1.1 million) to
  GBP1,400,000 ($2.3 million) and extending the duration through the
  minimum of November 30, 2015.
- Available borrowing capacity of $1.8 million from its loan
  facilities at December 31, 2013

(1) Includes $582,000 non-recurring charges

Tim Losik, President & CEO, Commented:"During 2013 the Company experienced
an improvement in business
activity with order bookings increasing 17% and the December 31, 2013
backlog up 31% from December 31, 2012; ending 2013 with a book-to-bill
ratio of 1.13 (2012:1.08). Of particular note are the 69% increase in
bookings and 40% growth in revenue for the Americas region which has
been a significant regional growth focus. New customer activity is a
cornerstone for our growth and I am pleased that we are continuously
partnering with new customers. Revenue from new customers accounted
for $1.5 million of total revenue growth across several market sectors,
including: 3D Scanning for 3D printing, Warehouse Robotics, Transport
Container Monitoring and Inspection, Medical Devices, UV curing,
Aeronautics, and Industrial Automation and Inspection."The revenue increase
and cost reductions resulted in dramatic
improvement in operating performance and results. During the second
half of 2013, we realized significant improvement in operating
performance versus the first half 2013. Comparative improvements in the
second half 2013 versus first half 2013 (excluding the restructuring
and one-time charges of $582K in the first half) include: Operating
loss decreased 84% narrowing from ($517,000) to ($82,000) and EBITDA
improved 164% from a loss of ($275,000) to a positive EBITDA of
$177,000. However, these improvements were somewhat offset by
non-cash changes in foreign currency exchange rates and the resulting
increase in material purchase prices, and shifts in product mix;
thereby depressing second half gross profit. The improvements in
second half operating income and EBITDA are primarily the result of
reductions in general and administrative costs. We always seek to
mitigate the effects of shifts in the revenue mix, but predicting and
controlling this can be difficult."

Full Year 2013 Financial Results

Revenue for the year ended December 31, 2013 was $15.6 million, an
increase of 12% compared with $13.9 million in 2012. Gross profit was
$6.0 million compared to $4.3 million in 2012. Gross profit margin
increased to 38.3% from 31.0% in 2012 due to a shift in product mix and
an increase in volume.

Operating expenses, excluding intangible amortization charges, totaled
$7.0 million versus $7.3 million in 2012. Sales and marketing expenses
decreased 12% in 2013 over 2012, while general and administrative and
research and development expenses were approximately flat over the same
period and include restructuring and one-time charges of $0.6 million
taken in the first half of 2013. The operating loss was $1.2 million,
as compared to a $3.1 million loss in 2012 and EBITDA was a loss of
$0.7 million versus a loss of $2.6 million in 2012. Net loss was $1.2
million compared to the 2012 net loss of $2.9 million. Included in the
operating expenses, operating loss and EBITDA is approximately $0.6
million of restructuring and one-time charges.

Strategy and Markets

ProPhotonix consists of two business units: an LED systems
manufacturing business based in Ireland (Cork), and a laser modules
production and laser diode distribution business located in the United
Kingdom (Hatfield Broad Oak). Corporate headquarters and the North
American sales activities are based in Salem, New Hampshire, USA. The
fundamental strategy of the Company is growth in revenue through its
existing customers, new customer activity, and new product and market
expansion. ProPhotonix's short-term strategy is to reach sustained
positive EBITDA, cash flow, and net income as soon as possible. These
goals will be accomplished through a relentless focus on cost
management and most importantly through revenue growth.

ProPhotonix growth in the medium-term will be accomplished with new
customer wins with the conversion of development orders into longer run
orders, and also through expansion into new markets and with new
products. In addition to the few important areas where we are
currently focused, we will continuously evaluate additional high growth
opportunities by geography and business line.

ProPhotonix sells its products principally into three markets:
industrial (primarily machine vision illumination), medical, and
homeland security and defense. The Company foresees growth
opportunities in all three markets it serves which are briefly
described below:

Industrial (Machine Vision)

Within the industrial market, machine vision is the term used to
describe computerized analysis for controlling manufacturing processes,
for example automated inspection. In terms of quality and speed,
lighting is often a critical component in machine vision and the
Company manufactures both LED systems and lasers designed specifically
for this market. The recently enhanced 3D Pro Laser line generatorsand
improved LED line light family specifically address this market.

Medical

The Company has experienced successes in the medical (including dental)
market and has gained a foothold in the market, supplying a variety of
applications, with current customers including the world leader in
stationary imaging equipment, a portable x-ray equipment manufacturer,
a dental imaging manufacturer and also a pioneer in the manufacturing
of devices offering eye tracking capability utilizing ProPhotonix's
custom infrared LED arrays. The Company intends to broaden its product
marketing effort in the medical field since it offers significant
long-term revenue growth opportunities.

Homeland Security & Defense

LED systems, laser modules and laser diodes are used in a wide variety
of applications in the security and defense fields. The Company
currently supplies several defense sighting manufacturers in the US and
Europe, as well as leading manufacturers of Auto Number Plate
Recognition systems. This market offers significant growth
opportunities for ProPhotonix over the next several years and the
Company is currently marketing its laser and LED capabilities to
additional security and optical character recognition systems companies
in this market space.

Outlook

ProPhotonix begins 2014 with the strongest ever backlog at our business
units and with the necessary funding in place to move forward in 2014.
Included in 2013 bookings are about $800,000 of customer bookings
relating to new customer projects (non-recurring engineering
development), of which approximately $700,000 will be recognized
revenue in 2014. We expect to begin shipping trial and production
orders resulting from these projects during 2014 and thereafter. These
potential high volume OEM (custom) applications include illuminators
for the semiconductor, optical sorting, endoscopy, and vascular imaging
markets. We look forward to another year of progress in 2014 and expect
that first half revenue will be in the range of $7.8 and $8.2 million.

Enquiries:

ProPhotonix Limited            Tel: +1 603 870 8220
Tim Losik, President and CEO   [email protected]

N+1 Singer                     Tel: +44 (0) 207 496 3000
Andrew Craig/ Ben Wright
Nominated Adviser and Broker

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 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.

Click on, or paste the following link into your web browser, to view
the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0602D_1-2014-3-24.pdf





                    This information is provided by RNS


          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US and large in-house IT organizations.
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridsto...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing and Personal Systems Group, will discuss how key attributes of mobile technology – touch input, senso...
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform your business. He will discuss opportunities and challenges ahead for the IoT from a market and tec...
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (on-premise), hybrid or public clouds. TeleStax products include Restcomm, JSLEE, SMSC Gateway, USSD Gateway, SS7 Resource Adaptors, SIP Servlets, Rich Multimedia Services, Presence Services/RCS, Diame...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An...
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
As a disruptive technology, Web Real-Time Communication (WebRTC), which is an emerging standard of web communications, is redefining how brands and consumers communicate in real time. The on-going narrative around WebRTC has largely been around incorporating video, audio and chat functions to apps. In his session at Internet of @ThingsExpo, Alex Gouaillard, Founder and CTO of Temasys Communications, will look at a fourth element – data channels – and talk about its potential to move WebRTC beyond browsers and into the Internet of Things.
SYS-CON Events announced today that Gigaom Research has been named "Media Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Ashar Baig, Research Director, Cloud, at Gigaom Research, will also lead a Power Panel on the topic "Choosing the Right Cloud Option." Gigaom Research provides timely, in-depth analysis of emerging technologies for individual and corporate subscribers. Gigaom Research's network of 200+ independent analysts provides new content daily that bridges the gap between break...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.