TIDMPPIX
RNS Number : 2148V
ProPhotonix Limited
05 April 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
April 5, 2019
ProPhotonix Limited
("ProPhotonix" or "the Company")
PRELIMINARY RESULTS FOR THE YEARED DECEMBER 31, 2018
and Notice of Annual General Meeting
ProPhotonix Limited (London Stock Exchange - AIM: PPIX, OTC:
STKR), a high technology 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, 2018.
Financial Overview
-- Full year results slightly ahead of guidance issued to the market on November 2, 2018
-- Revenue decreased 8% to $16.4 million (2017: $17.7 million)
-- Gross profit decreased 20% to $6.3 million (2017: $7.9 million)
-- Gross profit margin decreased to 38.7% (2017: 44.6%)
-- Operating (loss) profit decreased to $(1.0) million (2017: $1.2 million).
-- Adjusted EBITDA decreased to $0.3 million (2017: $2.0 million)
-- Net (loss) income decreased 166% to ($1.3) million (2017: $2.0 million)
-- Available borrowing capacity of $0.2 million from its
revolving credit facility at December 31, 2018 (2017: $0.4
million)
-- Order bookings of $16.1 million (2017: $19.6 million)
-- Order backlog decreased to $6.8 million (2017: $7.3 million)
-- Book-to-Bill ratio of 0.98 (2017: 1.11)
-- Percentage revenue by market sectors: industrial 77%, medical
19%, and homeland security & defense 4% (2017: industrial 75%,
medical 21%, and homeland security and defense 4%)
-- Percentage revenue by geography: 48% Europe, 36% North
America and 16% Rest of World (2017: 49% Europe, 37% North America
and 14% Rest of World)
Tim Losik, President & CEO, Commented:
"2018 has been a challenging year for the Company with setbacks
in revenue, gross profit, and net income. As announced in a trading
update released by the Company on November 2, 2018, the Directors
provided revised estimates for 2018 with revenue of $16.0 million
and a net loss of $2.0 million. Actual revenue and net loss were
slightly better than those described in November.
"As compared to 2017, sales decreased 8% to $16.4 million due in
large part to the decline in business with one customer's delayed
new product launch; gross profit decreased 20% primarily from
unabsorbed manufacturing overhead due to lower sales volumes; and
these factors contributed to the Company incurring an operating
loss of $1.0 million compared to an operating profit of $1.2
million in 2017. In addition, R&D costs increased $0.2 million
to $1.0 million (in line with budget), Selling, General, and
Administrative costs increased $0.4 million primarily due to
increased stock based compensation expense, a non-cash movement in
Foreign Currency Exchange loss of $0.3 million compared with 2017
and zero tax benefit in 2018 versus $0.5 million in 2017. These
factors all contributed to the profit profile of the Company.
"The balance sheet remains consistent with the prior year with
cash at year end of $1.9 million (2017: $2.2 million) and a current
ratio of 1.68 compared to 1.62 at year end 2017."
Customer and Product Development Initiatives
During the year, the ProPhotonix engineering and operations
teams achieved several milestones. The PROdigii laser module,
announced in January 2018, is a compact laser module controlled and
monitored through a digital RS485 communication interface providing
laser output control and performance monitoring. Integral thermal
management ensures exceptional output wavelength stabilization with
enhanced diode life due to superior output power control and the
ability to maintain consistent power levels. The new digital laser
platform is available in a range of wavelengths from 405nm to
850nm. Output powers of up 500mW continuous wave or 1W pulsed are
available. The platform is ideally suited to high-speed automated
inspection, 3D measurement especially in high ambient light or
temperature conditions, chemical, and biomedical analysis.
In addition, significant advances have been made in the UV LED
product family with enhancements in power levels of all products,
features available to users, and reliability. Notably, the FX1
COBRA Cure was certified by Underwriter Laboratories (UL) during
the year. The FX2 and FX3 curing products will also be submitted
for UL certification in the future.
The Company's laser module business, ProPhotonix (UK) Limited,
successfully transitioned from ISO9001:2008 to ISO9001:2015 during
2018. ProPhotonix (UK) Limited has been continuously certified to
the ISO9001 standard since 2003. International Organization for
Standardization (ISO) 9001:2015 is the most recent version of the
widely recognized ISO9001 standard that measures the effectiveness
of a company's quality management system and performance, with a
focus on organization-wide risk-based thinking which provides
additional assurance that ProPhotonix is focused on continuous
improvement and achieving excellence in our customer service and
delivery. Our Irish subsidiary was successfully transitioned to
ISO9001:2015 in November 2017.
Strategy and Markets
ProPhotonix consists of two business units: the LED systems
manufacturing business based in Ireland (Cork), and the 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 to grow
revenues from existing customers, to win new customers, release new
products, and grow market share within existing market segments and
to select new market segments.
Firstly, our existing customers and relationships are vital to
our continuing growth and success. Their success helps feed our
success and provides us with the opportunity to develop new
products and market solutions for other customers and applications.
Secondly, the Company's strategy 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(TM) 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 2018 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.
ProPhotonix sells its products principally into three markets:
industrial (primarily machine vision illumination), medical, and
homeland security and defense. The Company expects growth
opportunities in all three of these markets as described further
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.
Medical
The medical and dental market requires many different LED
systems and laser modules for unique processes, procedures, and
applications. The Company provides a variety of products for
medical and dental applications to current customers including a
world leader in stationary imaging equipment, a portable x-ray
equipment and dental imaging manufacturer. 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 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
Bookings in the first thirteen weeks of 2019 are $4.2 million
(2018: $4.3 million) and the backlog rests at $7.8 million (2018:
$7.4 million). ProPhotonix has received initial production orders
for a customer delayed product launch and expects fully to ramp up
production in Q2 2019. Development of the Cobra Cure UV LED
products continues with ever increasing intensity, as evidenced by
the two recently awarded patents from the United States Patent and
Trademark Office relating to the UVLED products. The Directors
remain positive about our business pipeline and confident in our
ability to resume growth.
Annual General Meeting and Posting of Results
The Company will hold its Annual General Meeting on May 16, 2019
at 10:00 a.m. British Summer Time at the offices of K&L Gates
LLP, One New Change, London EC4M 9AF. The Company intends to
publish its final audited accounts for the year ended December 31,
2018 in April 2019.
Enquiries:
ProPhotonix Limited Tel: +1 603 893 8778
Tim Losik, President and CEO ir@prophotonix.com
Cantor Fitzgerald Europe
(Nominated Adviser and Broker) Tel: +44 (0)207 894 7000
David Foreman
Richard Salmond
About ProPhotonix
ProPhotonix Limited, headquartered in Salem, New Hampshire, is a
high technology designer and manufacturer of diode-based laser
modules and LED systems for industry leading OEMs and medical
equipment companies. In addition, the Company distributes premium
diodes for Ushio, Osram, QSI, Panasonic, and Sony. The Company
serves a wide range of markets including the machine vision,
industrial inspection, security, and medical markets. ProPhotonix
has offices and subsidiaries in the U.S., Ireland, U.K., and
Europe. For more information about ProPhotonix and its innovative
products, visit the Company's web site at www.prophotonix.com.
PROPHOTONIX LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
($ in thousands except share and per share data)
Years Ended
December 31,
-------------------------------------
2018 2017
----------------- ------------------
Revenue $ 16,401 $ 17,743
Cost of Revenue (10,057) (9,822)
----------------- ------------------
Gross Profit 6,344 7,921
----------------- ------------------
Research & Development Expenses (1,011) (763)
Selling, General & Administrative Expenses (6,327) (5,951)
Operating (Loss) Income (994) 1,207
Other Income, net 20 375
Foreign Currency Exchange (Losses) Gains (232) 57
Warrant & Debt Acquisition Expense (11) (18)
Interest Expense (91) (49)
----------------- ------------------
(Loss) Income Before Taxes (1,308) 1,572
Income Tax Benefit - 469
----------------- ------------------
Net (Loss) Income $ (1,308) $ 2,041
Other Comprehensive Income:
Foreign currency translation (132) 51
----------------- ------------------
Total Comprehensive (Loss) Income $ (1,440) $ 2,092
================= ==================
Net (Loss) Income Per Share:
Basic and diluted:
Basic net (loss) income per share $(0.014) $0.022
Diluted net (loss) income per share $(0.014) $0.020
----------------- -----------------
Shares used in per share calculations - Basic 92,782,902 92,565,402
----------------- -----------------
Shares used in per share calculations - Diluted 92,782,902 104,193,859
------------------------------------------------ ----------------- -----------------
PROPHOTONIX LIMITED
CONSOLIDATED BALANCE SHEETS
($ in thousands except share and per share data)
December 31 2018 2017
Assets
Current assets:
Cash and cash equivalents $ 1,939 $ 2,150
Accounts receivable, less allowances of $49 in 2018 and
$14 in 2017 2,872 3,114
Inventories, less allowances of $615 in 2018 and $633 in
2017 (Note 4) 2,399 2,280
Prepaid expenses and other current assets 289 235
Total current assets 7,499 7,779
Net property, plant and equipment (Note 5) 646 633
Deferred tax assets (Note 9) 454 475
Goodwill (Note 6) 405 424
Other long-term assets 423 239
Total assets $ 9,427 $ 9,550
Liabilities and Stockholders' Equity
Current liabilities:
Revolving credit facility (Note 8) $ 1,096 $ 1,293
Current portion of long-term debt (Note 8) 188 -
Accounts payable 1,791 1,638
Accrued payroll, benefits and incentive compensation 399 636
Deferred revenue 498 434
Accrued warranty expenses 170 184
All other accrued expenses 270 534
Current portion of capital lease obligations 63 95
Total current liabilities 4,475 4,814
Long term debt obligations, net of current portion (Note
8) 581 -
Long term capital lease obligations, net of current
portion 94 98
Total liabilities 5,150 4,912
Stockholders' Equity:
Common stock, par value $0.001; shares authorized
250,000,000 at December 31, 2018 and at
December 31, 2018; 93,000,402 shares issued and
outstanding at December 31, 2018 and 92,565,402
shares issued and outstanding at December 31, 2017 93 93
Additional paid-in capital 114,067 112,987
Deferred compensation (19 ) (18 )
Accumulated deficit (110,746 ) (109,438 )
Accumulated other comprehensive income 882 1,014
Total stockholders' equity 4,277 4,638
Total liabilities and stockholders' equity $ 9,427 $ 9,550
PROPHOTONIX LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ In thousands)
Years Ended December 2018 2017
31
Cash flows from
operating activities
Net (loss) income $ (1,308) $ 2,041
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Stock-based
compensation
expense 1,075 645
Depreciation 169 100
Foreign
exchange
loss (gain) 77 (264)
Amortization
of debt
discount and
financing
costs 10 7
Allowance for
inventories 5 33
Allowance for
bad debt 37 5
Other changes in
assets and
liabilities:
Accounts
receivable 68 (553)
Inventories (235) 141
Prepaid
expenses and
other
current
assets (62) 97
Deferred tax
asset - (475)
Accounts
payable 233 (11)
Accrued (389) (150)
expenses
Other assets
and
liabilities (183) (164)
Net cash (used in)
provided by
operating
activities (503) 1,452
Investing
Purchase of
property, plant and
equipment (200 ) (170 )
Net cash used in
investing
activities (200 ) (170 )
Financing
Proceeds from 4 295
exercise of options
and warrants
Net proceeds from 875 -
issuance of debt
Borrowings of (151) 96
revolving credit
facilities, net
Payments for capital
leases (138) (81)
Principal repayment
of long-term debt (88) (449 )
Net cash provided by
(used in financing
activities) 502 (139)
Effect of exchange
rate on cash (10) 96
Net change in cash
and equivalents (211) 1,239
Cash and equivalents 2,150 911
at beginning of
period
Cash and equivalents
at end of period $ 1,939 $ 2,150
Supplemental cash
flow information:
Cash paid for
interest $ 91 $ 49
PROPHOTONIX LIMITED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands)
Common Stock
--------------------------------
Accumulated
Other Total
Paid in Deferred Accumulated Comprehensive Stockholders'
Shares Par $0.001 Capital Compensation Deficit Income Equity
-------------------- ---------- ----------- ------------ ----------- ------------- -------------
Balance December
31, 2016 83,665 $84 $112,038 - ($111,479) $963 $1,606
Net profit - - - - 2,041 - 2,041
Translation
adjustment - - - - - 51 51
Exercise of
options 6,700 7 231 - - - 238
Exercise of
warrants 1,900 2 55 - - - 57
Deferred
compensation 300 - 47 (47) - - -
Share based
compensation - - 616 29 - - 645
Balance December
31, 2017 92,565 $93 $112,987 ($18) ($109,438) $1,014 $4,638
Net loss - - - - (1,308) - (1,308)
Translation
adjustment - - - - - (132) (132)
Exercise of
options 135 - 4 - - - 4
Deferred
compensation 300 - 49 (49) - - -
Share based
compensation - - 1,027 48 - - 1,075
Balance December
31, 2018 93,000 $93 $114,067 ($19) ($110,746) $882 $4,277
======= ========== =========== ============ =========== ============= =============
Notes to unaudited Preliminary Results - Basis of
Presentation
The financial information set out in this document does not
constitute the Company's statutory accounts for 2017 and 2018 or
the Company's annual audited accounts for 2018 to be published and
sent to shareholders in accordance with Rule 19 of the AIM Rules
for Companies. The 2018 accounts included herein are unaudited and
therefore subject to change at the time the audited accounts are
issued. The 2018 unaudited preliminary financial statements were
prepared under US GAAP and were approved on April 4, 2019, by the
Directors for issue on April 5, 2019. A copy of this announcement
is available on the Company's website at www.prophotonix.com. It is
intended that the Company's 2018 annual report and audited accounts
will be available to shareholders in April 2019.
Cautionary 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
Adjusted 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 Adjusted EBITDA (earnings before interest,
taxes, depreciation, amortization, and stock-based compensation) as
a non-GAAP financial measure in this press release. A
reconciliation of net income to Adjusted EBITDA for the total year
2018 and 2017 is as follows:
(in thousands)
Year Ended December 31,
2018 2017
------------------------------ --------
Net (loss) income $ (1,308) $ 2,041
Plus:
Interest and other expense, net 314 (365)
Taxes - (469)
Depreciation 169 100
Stock based compensation 1,075 645
Adjusted EBITDA $ 250 $ 1,952
------------------------------ --------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SSAFULFUSEFL
(END) Dow Jones Newswires
April 05, 2019 02:00 ET (06:00 GMT)
Prophotonix (LSE:PPIX)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Prophotonix (LSE:PPIX)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024