LED systems maker ProPhotonix posts generally positive interims

13 Sep 2017

First six months of 2017 saw better revenues and gross profits, although income slipped back.

ProPhotonix, a developer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom, has announced its interim results for the past six months’ trading (H1), which ended June 30, 2017.

Highlights of the H1 period included revenue increasing by 5.5% to $8.5 million (H1, 2016: $8.1 million), gross profit up 5.3% to $3.8 million (H1, 2016: $3.6 million); gross profit margin steady at 44.4%; and net income up to $0.6 million (H1, 2016: $0.4 million).

The company stated the revenue splits by market sectors were: 75% industrial, 22% medical and 3% security & defense, representing a small shift from industrial to medical. Prophotonix’s current order bookings totalled $8.8 million.

Debt removed

Tim Losik, President & CEO, commented, “The first half of 2017 was a pivotal period for the company as we deleveraged our balance sheet by paying off all of the term debt and launched new product lines to complement our existing award winning products.

“Sales in the first half of 2017 were up 5.5% primarily due to an increase in LED product sales offsetting a modest decline in laser and laser diode sales. The increase was primarily due to LED product sales including to a new Fortune 50 customer.”

He added, “Operating income decreased to $0.6 million from $0.7 million in 2016, mainly due to the increased sales and administrative costs plus expenses and investments in the company to support the future growth of the business.”

Strategy

Looking ahead, Losik commented, “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 the 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. We have this year launched several versions of our Cobra Cure product and we continue to work with many potential customers in their applications using this technology.”

“We see opportunities which include a broad range of applications in printing, microscopy, industrial inspection and sorting, solar simulation and security markets. We plan to continue to launch new higher power products while continuously enhancing our current product lines to serve these markets."