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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 lighting systems and laser diode modules, with operations in Ireland and the UK , today announces its unaudited results for the six-month period ended June 30, 2021.
Half-Year Financial Results 2021
Revenue for the six-month period ended June 30, 2021 was $ 7.9 million, an increase of 14%, on a reported basis, compared to $ 6.9 million for the same period of 2020 At constant exchange rates, sales increased by 5% over the same period. of 2020. The increase is mainly due to the increase in sales of LED products.
Reported gross profit for the six-month period ended June 30, 2021 was $ 3.3 million, an increase of 2.2% from $ 3.3 million in the first half of 2020. Gross profit for the six-month period ended June 30, 2021 decreased to 42.2% from 47.1%. compared to the same period in 2020, mainly due to the product line, the increase in material costs and the profit in 2020 of various government aids related to COVID-19.
Operating expenses for the six-month period ended June 30, 2021 totaled $ 2.7 million compared to $ 3.0 million for the comparable period in 2020. Selling, general and administrative expenses for the six-month period ended June 30 2021 decreased by $ 0.2 million to $ 2.2 million compared to the same period. period in 2020 mainly due to falling headcount costs and travel restrictions related to COVID-19. Research and development costs for each of the semesters ended June 30, 2021 and 2020 were $ 0.5 million.
Improved gross profit and lower operating expenses resulted in operating income of $ 0.6 million for the six-month period ended June 30, 2021, doubling operating income by $ 0.3 million recorded in the first half of 2020.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and impairment charges) for the six-month period ended June 30, 2021 was $ 0.7 million, compared to $ 0.4 million for the same period in 2020.
Net income was $ 0.5 million for the six-month period ended June 30, 2021, compared to $ 0.3 million in net income for the first half of 2020.
Cash and cash equivalents as at June 30, 2021 amounted to $ 3.0 million, compared to $ 2.6 million as at December 31, 2020 and $ 1.9 million as at June 30, 2020. The detailed financial results and the notes follow.
- Order intake of $ 9.5 million (H1-2020: $ 6.8 million)
- Orders-to-bill ratio of 1.21 (H1-2020: 0.99)
- Order book (order book) of $ 7.1 million (H1-2020: $ 6.4 million)
- Percentage of turnover by market sector: 79% industrial, 20% medical and 1% security & defense (H1-2020: 84% industrial, 15% medical and 1% security & defense)
- Percentage of sales by geographic area: 43% in Europe, 46% in North America and 11% in the rest of the world (H1-2020: 41% in Europe, 54% in North America and 5% in the rest of the world)
Tim Losik, President and CEO, said:
“Overall, I am satisfied with our results for the first half of 2021. The company has seen improvement in virtually all financial metrics including revenue, gross margin, operating profit, Net Income and Adjusted EBITDA Compared to H1 2020., we increased our cash balance to $ 3.0 million, while continuing to repay our debt.
The increase of $ 1.0 million or 14% in reported revenue in the first half of 2021 over the first half of 2020 is the result of increases of $ 0.8 million, or 26%, in revenue from LED products and 0 , $ 2 million, or 5%, of Laser and Diode products. product income. As we expect to see increasing pressure to increase operating expenses as the general economic recovery continues, I’m glad we were able to reduce our operating expenses by $ 0.2 million, or 8 %, in the first half of 2021 compared to the first half of 2020. We will continue to invest prudently in the resources necessary to provide the highest quality products and services to our customers worldwide and therefore are likely to see a some increase in our operating expenses in the second half of 2021 compared to the first half.
The outbreak of the COVID-19 pandemic and the measures adopted by local governments to mitigate its spread have had a much greater impact on the Company in 2020 than in 2021. The Company has not yet suffered any shutdowns. operation in 2021 in relation to the pandemic that caused the closure of its facilities. for brief periods in 2020. However, risks in the supply chain have increased as many components are in short supply and delivery times are lengthened. While there have been no substantial delays or negative consequences for the business of supply chain issues, it remains a significant risk for the foreseeable future.
With a strong order book, administrators estimate at this point that second half trading will be in line with first half trading subject to further disruption due to COVID-19 and / or supply chain issues and logistics. Directors warn that the risks in the supply chain are substantial and that there will most likely be disruptions impacting the business.
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THE SOURCE: ProPhotonix Limited
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