EXTENSION FOR REPORTING FINANCIAL RESULTS AND TRADING UPDATE
SALEM, NH / ACCESSWIRE / June 23, 2020 / ProPhotonix Limited (OTC PINK:STKR)(LSE:PPIX)(AIM:PPIR), a high technology designer and manufacturer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom, today announces the Company has been granted an extension until September 30, 2020 for the reporting and filing of its financial results for the year ended 31 December 2019. The audit of these results continues and the Company expects to notify and publish these results earlier than this deadline and will provide a more precise date in due course.
Revenue for 2019 is expected at $15.0 million (2018: $16.4 million). No single customer significantly impacted the decline; rather the mix of customers in decline versus growth was greater. Operating profit is expected at approximately $1.1 million (2018: loss $1.0 million) mainly due to a stock compensation benefit from the lack of attainment of the vesting criteria on stock options ($1.2 million) versus the expense to the Income Statement in 2018 of $1.1 million. Excluding the effect of stock compensation benefit/expense, the net loss in FY19 is expected to be broadly comparable with that incurred in 2018. In addition, order bookings and order backlog at December 31, 2019 are expected to be broadly comparable with those as at December 31, 2018. Cash and cash equivalents at December 31, 2019 was $1.5 million (2018: $1.9 million).
The Company has remained in operation during the COVID-19 pandemic with those able working from home and those required in the facility, including manufacturing personnel, doing so under government guidelines. The safety of our colleagues has been foremost during this time and we have taken prudent actions to provide a safe work environment. The Company has undertaken cost reductions and working capital improvement actions to maximize the cash position. Cash flow is further optimized from deferral of certain lease and loan payments which will be amortized over mutually agreed future periods. Recently, the Company has applied for and received $86,300 in new funding from a loan under the US Small Business Administration’s Paycheck Protection Program and £50,000 in new funding from a loan under the UK Bounce Back Loan Scheme. The Company is also utilizing, as available, State Aid in respect of payroll costs including furloughs.
Trading through the first five months of 2020 is consistent as that over the first five months 2019; approximately $5.8 million revenue in each period. Bookings for the first five months 2020 were $5.7 million compared to $6.9 million in the same period 2019. Backlog at the May 31, 2020 was $6.0 million versus backlog at December 31, 2019 of $6.3 million. The cash balance at May 31, 2020 was $1.8 million versus the balance at December 31, 2019 of $1.5 million. Given the inherent uncertainties surrounding COVID-19, the Board continues to believe it is inappropriate to provide forward looking guidance to investors and analysts at the current time.
Tim Losik, President and CEO
Tel: +1 603 893 8778
Cantor Fitzgerald Europe
(Nominated Adviser and Broker)
Tel: +44 (0)207 894 7000
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, 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.
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.
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SOURCE: ProPhotonix Limited
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