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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Prophotonix Limited | LSE:PPIX | London | Ordinary Share | COM SHS $0.001 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.75 | 8.50 | 9.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPPIX
RNS Number : 6358H
ProPhotonix Limited
14 March 2018
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.
March 14, 2018
ProPhotonix Limited
("ProPhotonix" or "the Company")
PRELIMINARY RESULTS FOR THE YEARED DECEMBER 31, 2017
And Notice of Annual General Meeting
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, today announces its unaudited preliminary results for the year ended December 31, 2017.
Financial Highlights
-- Revenue increased 9% to $17.7 million (2016: $16.2 million) -- Gross profit increased 7% to $7.9 million (2016: $7.4 million) -- Gross profit margin decreased slightly to 44.6% (2016: 45.4%)
-- Operating profit decreased 19% to $1.2 million (2016: $1.5 million). Excluding stock compensation, operating profit increased 11% to $1.9 million (2016: $1.7 million)
-- Net income increased 63% to $2.0 million (2016: $1.3 million)
-- Available borrowing capacity of $0.4 million from its revolving credit facility at December 31, 2017 (2016: $0.4 million)
-- Adjusted EBITDA increased 12% to $2.0 million (2016: $1.8 million) -- Order bookings of $19.6 million (2016: $16.7 million)
-- Order backlog increased to $7.3 million (2016: $5.6 million) Book-to-Bill ratio of 1.11 (2016: 1.03)
-- Percentage revenue by market sectors: industrial 75%, medical 21%, and homeland security & defense 4% (2016: industrial 82%, medical 14%, and homeland security and defense 4%)
-- Percentage revenue by geography: 49% Europe,37% North America and 14% Rest of World (2016: 48% Europe, 42% North America and 10% Rest of World
Tim Losik, President & CEO, Commented:
"2017 has been a successful year for the Company and we have continued our progressive financial momentum from the past two years. We have achieved consecutive half-yearly periods of positive operating income, net income, and Adjusted EBITDA and delivered growth across key metrics. The year has also positioned us well for 2018, with a record order backlog.
"As compared to 2016, sales grew 9% to $17.7 million, gross profit improved 7%, and operating income increased 11%, excluding stock compensation expense. Net income increased 63% from increased gross profit, R&D tax credits, the net benefit of various tax attributes, and the change in foreign currency translation, which were partially offset by a full year of expenses related to the addition of sales personnel in late Q4 2016, and the increase in stock compensation as noted above. Adjusted EBITDA also improved 12% over 2016. Order bookings of $19.6 million, represented a 17.7% increase from 2016 bookings of $16.7 million, ending the year with a book to bill ratio of 1.11 (2016: 1.03).
"The term debt of the Company was paid in full by June 2017 providing a stronger balance sheet and financial condition. Also during 2017, the Company received a capital asset grant from the Irish Development Authority ("IDA") through its Business Asset Program, aimed at supporting the growth of IDA client companies investing in new manufacturing capability and capacity. This grant provides an element of funding for a new state-of-the-art UV LED lamp production line. Finally, the ProPhotonix team continues to execute on its long term strategies by successfully launching new products, which we believe will produce positive results during 2018 and beyond."
Customer and Product Development Initiatives
During the year, the ProPhotonix engineering team completed the development of several products and implemented a number of new technology capabilities. The new Cobra Multispec line light of 12 Wavelengths was announced in January 2018. In addition, ProPhotonix received the Vision Systems Design 2017 Innovators award in April 2017 for our previously announced Cobra RGB line light. ProPhotonix is nearing completion of its laser development financed by a European Union funded Fast Track to Innovation program. This development effort has allowed the Company to develop a laser with digital control, intense stability through thermal electric cooling, and digital data logging and monitoring. The grant provided the Company with up to EUR360,000 of funding when originally awarded in 2016. The development project is expected to complete by June 2018. In addition, we continued to work with many of our major original equipment manufacturer ("OEM") customers in new product development efforts to improve their products and processes.
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 market expansion within existing market segments and to select new market segments.
First, 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. Second, 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 and a surgical illumination device 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
ProPhotonix begins 2018 with a strong order backlog and continues to development products and capabilities with new and existing customers. Development of the Cobra Cure UV LED products continues with ever increasing intensity and progress is being made with several potential major customers for these products. We believe that these products will gain market acceptance during 2018. With the strong order book at the beginning of the year, the Directors remain positive about our business pipeline and confident in our ability to achieve continued positive momentum toward our profitability objectives.
Annual General Meeting and Posting of Results
The Company will hold its Annual General Meeting on May 17, 2018 at 2:00 p.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, 2017 in April 2018.
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 Andrew Craig Richard Salmond David Foreman
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 (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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PROPHOTONIX LIMITED
Condensed Consolidated Statements of Income and Comprehensive Income
(in thousands except share and per share data)
Years Ended
December 31,
-------------------------------------
2017 2016
(Unaudited) (Audited)
----------------- -----------------
Revenue $ 17,743 $ 16,245
Cost of Revenue (9,822) (8,862)
----------------- -----------------
Gross Profit 7,921 7,383
----------------- -----------------
Research & Development Expenses (763) (814)
Selling, General & Administrative Expenses (see impact of stock compensation
in our Non GAAP
financial reconciliation) (5,951) (5,077)
Operating Income 1,207 1,492
Other Income, net 375 344
Foreign Currency Translation Gain (Losses) 57 (360)
Warrant & Debt Acquisition Expense (18) (88)
Interest Expense (49) (133)
----------------- -----------------
Income Before Taxes 1,572 1,255
Income Tax Benefit 469 -
----------------- -----------------
Net Income $ 2,041 $ 1,255
Other Comprehensive Income:
Foreign currency translation 51 (19)
----------------- -----------------
Total Comprehensive Income $ 2,092 $ 1,236
================= =================
Net Income Per Share:
Basic and diluted:
Basic net income per share $0.022 $0.015
Diluted net income per share $0.020 $0.014
----------------- -----------------
Shares used in per share calculations - Basic 92,565,402 83,665,402
----------------- -----------------
Shares used in per share calculations - Diluted 104,193,859 90,740,402
----------------------------------------------------------------------------- ----------------- -----------------
PROPHOTONIX LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
2017 2016
December 31 (Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 2,150 $ 911
Accounts receivable, less allowances of $14 in 2017 and
$30 in 2016 3,114 2,302
Inventories 2,280 2,155
Prepaid expenses and other current assets 235 298
Total current assets 7,779 5,666
Net property, plant and equipment 633 342
Deferred tax asset 475 -
Goodwill 424 372
Other long-term assets 239 74
Total assets $ 9,550 $ 6,454
Liabilities and Stockholders' Equity
Current liabilities:
Revolving credit facility $ 1,293 $ 1,049
Current portion of long-term debt - 402
Accounts payable 1,638 1,454
Accrued expenses 1,788 1,823
Current portion of capital lease 95 68
Total current liabilities 4,814 4,796
Long-term capital lease obligations, net of current
portion 98 52
Total liabilities 4,912 4,848
Stockholders' Equity:
Common stock, par value $0.001; shares authorized
250,000,000 at December 31, 2017 and at
December 31, 2016; 92,565,402 shares issued and
outstanding at December 31, 2017 and 83,665,402
at December 31, 2016 93 84
Additional paid-in capital 112,969 112,038
Accumulated deficit (109,438 ) (111,479 )
Accumulated other comprehensive income 1,014 963
Total stockholders' equity 4,638 1,606
Total liabilities and stockholders' equity $ 9,550 $ 6,454
PROPHOTONIX LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2017 2016
Years Ended December 31 (Unaudited) (Audited)
Cash flows from operating
activities
Net income $ 2,041 $ 1,255
Adjustments to reconcile net income
to net cash provided by operating
activities:
Stock-based compensation
expense 645 178
Depreciation 100 75
Foreign exchange (gain)/loss (264) 74
Amortization of debt
discount and financing
costs 7 60
Provision for inventories 33 120
Provision for bad debts 5 9
Other changes in assets and
liabilities:
Accounts receivable (553) 360
Inventories 141 (809)
Prepaid expenses and other
current assets 97 (168)
Deferred tax asset (475) -
Accounts payable (11) 246
Accrued expenses (150) 836
Other assets and liabilities (164) 6
Net cash provided by operating
activities 1,452 2,242
Investing
Purchase of property, plant and
equipment (170 ) (121 )
Net cash used in investing
activities (170 ) (121 )
Financing
Exercise of options and warrants 295 -
Borrowings of revolving credit 96 (237)
facilities, net
Capital lease (81) (66)
Principal repayment of long-term
debt (449 ) (1,100 )
Net cash used in financing
activities (139) (1,403)
Effect of exchange rate on cash 96 (241)
Net change in cash and equivalents 1,239 477
Cash and equivalents at beginning 911 434
of period
Cash and equivalents at end of
period $ 2,150 $ 911
Supplemental cash flow information:
Cash paid for interest $ 49 $ 133
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,
2015 83,665 $84 $111,860 - ($112,734) $982 $192
Net profit - - - - 1,255 - 1,255
Translation
adjustment - - - - - (19) (19)
Share based
compensation - - 178 - - - 178
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 0 47 (47) - - 0
Share based
compensation - - 616 29 - - 645
Balance
December 31,
2017 92,565 $93 $112,987 ($18) ($109,438) $1,014 $4,638
======= ========== ========= ============ =========== ============= =============
14
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 2016 and 2017 or the Company's annual audited accounts for 2017 to be published and sent to shareholders in accordance with Rule 19 of the AIM Rules for Companies. The 2017 accounts included herein are unaudited and therefore subject to change at the time the audited accounts are issued. The 2017 unaudited preliminary financial statements were prepared under US GAAP and were approved on March 13, 2018, by the Directors for issue on March 14, 2018. A copy of this announcement is available on the Company's website at www.prophotonix.com. It is intended that the Company's 2017 annual report and audited accounts will be available to shareholders in April 2018.
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 2017 and 2016 is as follows:
(in thousands)
Year Ended December 31,
2017 2016
------------ ------------
Net income $ 2,041 $ 1,255
Plus:
Interest and other expense, net (365) 237
Taxes (469) -
Depreciation 100 75
Stock based compensation 645 178
Adjusted EBITDA $ 1,952 $ 1,745
------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LFFLVVSIVLIT
(END) Dow Jones Newswires
March 14, 2018 03:01 ET (07:01 GMT)
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