ProPhotonix Limited COVID -- 19 and Trading Update (2803J)
09 Abril 2020 - 01:00AM
UK Regulatory
TIDMPPIX
RNS Number : 2803J
ProPhotonix Limited
09 April 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
April 9, 2020
ProPhotonix Limited
("ProPhotonix" or "the Company")
COVID - 19 and Trading Update
ProPhotonix Limited (London Stock Exchange - AIM: PPIX &
PPIR, OTC: STKR), a high technology designer and manufacturer of
LED illumination systems and laser diode modules, with operations
in Ireland and the United Kingdom, announces an update today on the
impact of the rapidly evolving COVID-19 pandemic on its business
alongside measures the Company is taking to actively manage and
mitigate the risks to its employees, customers and operations.
Employees and Customers
In order to ensure business continuity in day-to-day operations,
the Company has implemented a series of actions to protect the
health and safety of its employees following the advice from the
local authorities and governments in the jurisdictions in which the
Company operates. These are monitored and reviewed regularly and
include: dialogue with employees, customers and suppliers; the
diligence of office health and hygiene practices which follow
specific health protection protocols; the adoption of flexible
working arrangements; and restrictions on travel and meetings.
Operations
In the first three months of the current financial year there
was no material COVID-19 impact on ProPhotonix' trading. However,
it is inevitable that COVID-19 will adversely affect our business.
In late March, a few customers ceased operations and have suspended
procurement and acceptance of product. There have not yet been
significant supply chain stoppages but there have been delays
impacting some shipments. Whilst the Board is encouraged by the
resilience shown by the Group and its employees to date, it expects
further adverse customer and supplier actions. Given the inherent
uncertainties surrounding COVID-19, the Board believe it is
inappropriate to provide forward looking guidance to investors and
analysts at the current time.
Cash flow and liquidity
Whilst the Company has always maintained a prudent approach to
costs, due to the level of heightened uncertainty caused by
COVID-19, the Company has identified and is implementing, or
considering as necessary, mitigating actions to reduce costs to
help offset the effect of expected lower production and sales in
order to maximise liquidity and minimise utilisation of cash
resources. These actions include:
-- A reduction of inventory levels and working capital more
generally including to ensure prompt debtor collections;
-- Plant closure and utilising UK and Ireland government schemes in respect of payroll costs;
-- A reduction or deferral of non-essential operating costs and new recruitment;
-- The Non-executive directors have elected to suspend their
remuneration for the second quarter, the CEO has agreed a temporary
reduction in salary of 50% and the senior management has also
agreed a temporary reduction in salary.
Tim Losik, CEO, said: "In these incredibly challenging times, we
continue to be focused on ensuring the continued health, safety and
well-being of our colleagues. We are all pulling together to manage
these extraordinary circumstances in the world and our business.
The impact of COVID-19 remains uncertain and as a result we are
working with our key stakeholders; employees, customers and
suppliers, to ensure we minimise the effect of the disruption. The
mitigating actions we are putting in place or continue to plan for
are focused on ensuring we maintain our liquidity, cash resources
and future growth optionality. Despite these uncertain times, the
Board remains confident in the Company's ability to successfully
manage through this difficult period and our actions are the
prudent ones to take at this time."
Contact:
ProPhotonix Limited Tel: +1 603 893 8778
Tim Losik, President & CEO ir@prophotonix.com
Cantor Fitzgerald Europe
(Nominated Adviser and Broker) Tel: +44 (0)207 894 7000
David Foreman, Luke Philippou (Corporate Finance)
Keith Dowsing (Sales)
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, UV curing, 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 .
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
will 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.
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
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