SALEM, NH--(Marketwired - Sep 7, 2016) - ProPhotonix Limited (OTC PINK: STKR) (LSE: PPIX), a high technology designer and manufacturer of LED illumination systems and laser diode modules, today announces its unaudited interim results for the six months ended June 30, 2016.
- Revenue increased 20% to $8.1 million (2015: $6.7 million)
- Gross profit increased 29.8% to $3.6 million (2015: $2.8 million)
- Gross profit margin increased to 44.4% (2015: 41.2%)
- Operating income increased significantly to $0.7 million (2015: $0.1 million)
- Net income of $0.4 million (2015: loss $0.2 million)
- EBITDA increased significantly to $0.9 million (2015: $0.3 million)
- Order bookings of $8.8 million (2015: $7.7 million)
- 1.09 Book-to-Bill ratio (2015: 1.15)
- Percentage revenue by market sectors: 84% industrial, 11% medical and 5% security & defense (2015: 81% industrial, 15% medical and 4% security & defense)
- Percentage revenue by geography: 48% Europe, 42% North America and 10% Rest of World (2015: 48% Europe, 39% North America and 13% Rest of World)
- Available credit lines of $2.0 million
- Introduced 3 new products in the first half
- Renegotiated the terms of credit facility with Barclays
- Booked a $1.1 million order for the delivery of laser modules during H2 2016 and early 2017 with one of the Company's largest customers
Tim Losik, President & CEO, commented:
"The first half results mark the sixth consecutive half-yearly positive EBITDA, fourth consecutive half-yearly positive operating income and the second consecutive half-yearly positive net income reported by the Company; clearly demonstrating the Company's continued financial progress. Sales in the first half of 2016 were up 20% to $8.1 million from $6.7 million in 2015; both businesses (Lasers/Diodes and LED) contributed to the revenue growth. Operating profit dramatically improved to $0.7 million compared to $0.1 million in 2015, a 600% increase. Net income for the first half improved to $0.4 million compared to a loss of $0.2 million in the first half of 2015. Of note, both operating income and net income include increased Development/Engineering costs ($150,000) associated with investment and expenditure in the UV printing and curing market and customer expansion. Also, net income was negatively impacted by the dramatic decline in the British Pound versus U.S. Dollar foreign currency translation rate during the last week of June 2016 (approximately $180,000 non-cash impact) following the result of the EU referendum.
"The Company's balance sheet continues to strengthen. Principal on term debt of $553,000 was repaid and the net available credit from the Company's loan facilities was $2.0 million as of June 30, 2016. Also, on February 10, 2016, the Company entered into an amendment to its revolving credit facility with Barclays Sales Finance to (i) increase the line from £1,400,000 to £1,500,000; (ii) to reduce certain fees and service charges; and (iii) increase the borrowing rate from 80% to 85% while extending the minimum period of this amendment to 12 months to February 10, 2017 with a rolling evergreen provision. The Directors are comfortable with the cash flow of the business considering its plans and available credit facilities."
"Since June 2013, our short-term strategy has been to eliminate costs, win new customers, and improve margins. Our results for the first half of 2016, building on our full year 2015 results demonstrate that these short term strategies, put into place at the time of the recapitalization of the Company, have succeeded in creating a sustainable business model.
"The Company's longer term strategy, as noted in the 2015 Statement to Shareholders in the annual report, continues to be one of strategic repositioning to include a market(s) directed product portfolio. As a result of this longer term strategy, some of our engineering talents continue to be concentrated in defined market areas that we believe are poised for fast market expansion. ProPhotonix is investing in additional engineering resources and will continue to make such investments in fulfillment of our strategy. In addition, ProPhotonix is in the process of expanding its sales team to increase our world-wide sales coverage."
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