26 Aug 2014
LED and laser diode module company reports 13% increase in sales in latest half-year results.
ProPhotonix, the US-headquartered photonics company with key operations in the UK and Ireland, has narrowed its losses in the first half of its 2014 financial year, following recent cost-cutting actions.
At $8.3 million for the six months ending June 30, sales were up 13 per cent compared with the first half of 2013 – with sales of LED illumination systems and strong demand from industrial applications leading the improvement.
And although that sales increase came at the expense of a lower profit margin, much-reduced administrative costs on the company’s statement of operations cut the firm’s operating loss to $0.1 million – down from $1.1 million a year ago.
CEO Tim Losik also highlighted a growing order book and strong customer-driven development activity. In a statement to the London Stock Exchange’s Alternative Investment Market (AIM), he said that additional actions to reduce costs announced in May will further cut the company’s break-even point.
“The combination of a reduced break-even point, increased sales activity and significant new business opportunities together with the business moving towards being cash-flow positive, all indicate improved prospects for 2015,” he added.
During the first half of 2014, ProPhotonix also began working on some large, one-off customer-driven engineering projects that are expected to result in “significant production volumes” from next year onwards. “These applications include products in the medical market and additional OEM applications in the optical inspection market,” Losik said.
ProPhotonix, which now employs 91 people, comprises two business units: an LED systems manufacturing operation in Cork, Ireland, and a laser module production and distribution division at Hatfield Broad Oak in the UK. However, the company is headquartered out of Salem, New Hampshire.
Earlier this month, the diversified UK engineering firm 600 Group acquired just over a quarter of ProPhotonix’ shares, a strategic move that was welcomed by Losik.
But despite that and the improving business environment, ongoing losses mean that as of June 30 the ProPhotonix balance sheet listed only $253,000 in cash and equivalent assets – alongside $2.3 million long-term debt. The cash figure is down from $726,000 a year earlier.