|Major Shareholder of PPIX Corporate action
|Nice rise yesterday in the US. Uk price by Market Cap is now lagging behind around 20%|
|Must be why they did this
"Expanding our European sales team is a significant investment in our future revenue growth. We operate as a lean, cost conscious organization and expect this initiative will provide deep regional sales coverage and growing revenue from the second half of 2017 and beyond"|
|second half potential(17)not looking so good. order book must be low|
|Nice update,not suprising though as this from 600 group interims from a few weeks ago gave a bit of a clue
Margin improvement at Industrial laser systems continues
-- Industrial laser systems operating profit increased 41% to GBP0.89m (FY16 H1: GBP0.63m)
Downside risk looks limited with a market cap of £4m|
|Looking good again in the US tonight|
|It certainly looks like a turnaround here -
Bidding 6p - up 13% OTC|
Going blue today -
Largely ignored but L2 is 3 v1 -
Good rise on a company turnaround -|
|An interesting point with this stock is that the UK listing is finally catching up with the Market cap of the US listing but still some 17% difference on todays US/Sterling exchange rates
|From Existing shareholders not from PPIX hence no holding by PPIX of SIXH shares
"acquired 22,042,143 shares of common stock of ProPhotonix from existing shareholders"|
Those shares are now around less than 50% of what PPIX took them at
Does PPIX still own them ?
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, notes that 600 Group PLC (the “600 Group”) has announced that it has acquired 22,042,143 shares of common stock of ProPhotonix from existing shareholders, representing 26.3% of the outstanding shares of ProPhotonix, for consideration to be satisfied by the issue of 4,925,621 ordinary shares of the 600 Group. Based on the closing price per 600 Group share of 22.375 pence on 1 August 2014, being the last business day prior to the date of the announcement by 600 Group, this acquisition represents a price of 5.0 pence ($0.08) per PPIX share, which would indicate a premium of approximately 120% to the closing price of PPIX shares (2.275 pence) on 1 August 2014. ProPhotonix, incorporated in the State of Delaware, United States of America, is not subject to the UK City Code on Takeovers and Mergers (“City Code”), as disclosed in the Company’s Admission Document dated 20 December 2010.|
|Legal & General proves to be the seller of 11,364,286 of the 22 million shares sold 3 weeks ago to SIXH.|
|As I expected,the price has come back and one can buy at about 3.5p.
It surprises me that there have been no declarations since the SIXH transaction of any changes in PPIX shareholdings exceeding 3%. I would like to know whether the disposals were made by insiders or institutional shareholders.|
|I look forward to hearing who the sellers were and wonder whether they are committed to keep the SIXH shares for a fixed period; also whether SIXH representatives will be appointed to the PPIX board.|
|Overhang gone with the acquisition of 26% stake at 5p per share -|
|All heading in the right direction, happy to have them tucked away.
|A bit of volume would make this very interesting, I assume we are going to see a delayed buy show to explain the tick up.
|ProPhotonix Limited Annual Financial Report
RNS Number : 0583D
25 March 2014
("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.
-- 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 generators and improved LED line light family specifically address this market.
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.
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.
ProPhotonix Limited Tel: +1 603 870 8220
Tim Losik, President and CEO [email protected]
N+1 Singer Tel: +44 (0) 207 496
Andrew Craig/ Ben Wright 3000
Nominated Adviser and Broker
|25th march it is then, any tidy buys from here on in could be a pointer of how good they are likely to be.
|I thought we may have had some results by now,should be on the way very soon. Anyone else here?
|Another 300k bought last friday i notice, a bit of news would be nice.
|Was expecting the 3rd holdings RNS in a week after the large buys Fri, maybe later.
|Moving forward nicely and funded, traders don't like it because you have to fill a form in!!!!
Excellent long term hold.
|Also difficult to sell|