ProPhotonix Limited Announces 2021 Half-Year Report
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SALEM, NH / ACCESSWIRE / September 8, 2021 / INTERIM RESULTS FOR THE HALF YEAR ENDED JUNE 30, 2021
ProPhotonix Limited (LSE:PPIX)(AIM:PPIX)(OTC PINK:STKR), a leading technology designer and manufacturer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom, today announces its unaudited results for the six months ended June 30, 2021.
Half Year 2021 Financial Results
Revenue for the half year ended June 30, 2021 was $7.9 million, an increase of 14%, on a reported basis, compared with $6.9 million in the same period of 2020. On a constant currency basis, revenue increased 5% over the same period of 2020. The increase is primarily due to increases in LED product sales.
Reported gross profit for the half year ended June 30, 2021was $3.3 million, an increase of 2.2% compared to $3.3 million in the first half of 2020. Gross profit margin for the half year ended June 30, 2021 declined to 42.2% from 47.1% compared to the same period in 2020, mainly due to product mix, increased material costs, and the benefit in 2020 of various COVID-19 related government aid.
Operating expenses for the six months ended June 30, 2021 totaled $2.7 million versus $3.0 million for the comparable period in 2020. Selling, general and administrative expenses for the six months ended June 30, 2021 decreased by $0.2 million to $2.2 million compared to the same period in 2020 due primarily to lower headcount costs and COVID-19 travel restrictions. Research and development expenses for each of the six month periods ended June 30, 2021 and 2020 were $0.5 million.
The improved gross profit and lower operating expenses resulted in an operating profit of $0.6 million for the six months ended June 30, 2021, doubling the operating profit of $0.3 million recognized in the first half of 2020.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and impairment charges) for the six months ending June 30, 2021 was $0.7 million, as compared to $0.4 million for the same period in 2020.
Net income was $0.5 million for the six months ended June 30, 2021, as compared to $0.3 million in net income in the first half of 2020.
Cash and cash equivalents at June 30, 2021 were $3.0 million as compared to $2.6 million at December 31, 2020 and $1.9 million at June 30, 2020. Detailed financial results and notes follow.
- Order bookings of $9.5 million (H1-2020: $6.8 million)
- Book-to-Bill ratio of 1.21 (H1-2020: 0.99)
- Backlog (order book) of $7.1 million (H1-2020: $6.4million)
- Percentage revenue by market sectors: 79% industrial, 20% medical and 1% security & defense (H1-2020: 84% industrial, 15% medical and 1% security & defense)
- Percentage revenue by geography: 43% Europe, 46% North America and 11% Rest of World (H1-2020: 41% Europe, 54% North America and 5% Rest of World)
Tim Losik, President & CEO, commented:
“Overall, I am pleased with our results for the first half of 2021. The Company experienced improvement in virtually every financial metric, including revenue, gross profit, operating income, net income and adjusted EBITDA as compared to the first half of 2020. Further, we increased our cash balance to $3.0 million, while further paying down debt.
The $1.0 million or 14% increase in reported revenue in the first half of 2021 compared to the first half of 2020 resulted from increases of $0.8 million, or 26%, in LED product revenue and $0.2 million, or 5%, in Laser and Diode product revenue. While we expect to experience mounting pressure towards increased operating expenses as the broader economic recovery continues, I’m pleased that we were able to decrease our operating expenses by $0.2 million, or 8%, during the first half of 2021 as compared to the first half of 2020. We will continue to prudently invest in the resources that are necessary to deliver the highest quality products and services to our customers throughout the world and are therefore likely to see some increase in our operating expenses in the second half of 2021 as compared to the first half.”
The outbreak of the COVID-19 pandemic and the measures adopted by local governments to mitigate its spread impacted the Company much more in 2020 than in 2021. The Company has not as yet suffered operations shutdowns in 2021 versus the pandemic caused shut down of its facilities for brief periods in 2020. However, risks in the supply chain have heightened as many components are in short supply with extended delivery lead-time. Although there have been no substantial delays or negative consequences to the business from supply chain issues, this remains a significant risk for the foreseeable future.
With a strong order book, the Directors believe at this time that the second half trading will be in line with the first half trading subject to further disruptions by COVID-19 and/or supply chain and logistics challenges. The Directors caution that the risks in the supply chain are substantial and there will very likely be disruptions impacting the business.
For further information:
President and CEO
Tel: +1 603 893 8778
|WH Ireland Limited|
Nominated Adviser and Broker
Tel: +44 (0) 20 7220 1666
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SOURCE: ProPhotonix Limited
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