ProPhotonix Limited Announces Interim Results for the Half Year Ended June 30, 2016

SALEM, NH—(Marketwired – Sep 7, 2016) – ProPhotonix Limited (OTC PINK: STKR) (LSE: PPIX), a high technology designer and manufacturer of LED illumination systems and laser diode modules, today announces its unaudited interim results for the six months ended June 30, 2016.

Financial Highlights

  • Revenue increased 20% to $8.1 million (2015: $6.7 million)
  • Gross profit increased 29.8% to $3.6 million (2015: $2.8 million)
  • Gross profit margin increased to 44.4% (2015: 41.2%)
  • Operating income increased significantly to $0.7 million (2015: $0.1 million)
  • Net income of $0.4 million (2015: loss $0.2 million)
  • EBITDA increased significantly to $0.9 million (2015: $0.3 million)
  • Order bookings of $8.8 million (2015: $7.7 million)
  • 1.09 Book–to–Bill ratio (2015: 1.15)
  • Percentage revenue by market sectors: 84% industrial, 11% medical and 5% security & defense (2015: 81% industrial, 15% medical and 4% security & defense)
  • Percentage revenue by geography: 48% Europe, 42% North America and 10% Rest of World (2015: 48% Europe, 39% North America and 13% Rest of World)
  • Available credit lines of $2.0 million 

Operating Highlights

  • Introduced 3 new products in the first half
  • Renegotiated the terms of credit facility with Barclays
  • Booked a $1.1 million order for the delivery of laser modules during H2 2016 and early 2017 with one of the Company's largest customers

Tim Losik, President & CEO, commented:

Financial
“The first half results mark the sixth consecutive half–yearly positive EBITDA, fourth consecutive half–yearly positive operating income and the second consecutive half–yearly positive net income reported by the Company; clearly demonstrating the Company's continued financial progress. Sales in the first half of 2016 were up 20% to $8.1 million from $6.7 million in 2015; both businesses (Lasers/Diodes and LED) contributed to the revenue growth. Operating profit dramatically improved to $0.7 million compared to $0.1 million in 2015, a 600% increase. Net income for the first half improved to $0.4 million compared to a loss of $0.2 million in the first half of 2015. Of note, both operating income and net income include increased Development/Engineering costs ($150,000) associated with investment and expenditure in the UV printing and curing market and customer expansion. Also, net income was negatively impacted by the dramatic decline in the British Pound versus U.S. Dollar foreign currency translation rate during the last week of June 2016 (approximately $180,000 non–cash impact) following the result of the EU referendum. 

“The Company's balance sheet continues to strengthen. Principal on term debt of $553,000 was repaid and the net available credit from the Company's loan facilities was $2.0 million as of June 30, 2016. Also, on February 10, 2016, the Company entered into an amendment to its revolving credit facility with Barclays Sales Finance to (i) increase the line from £1,400,000 to £1,500,000; (ii) to reduce certain fees and service charges; and (iii) increase the borrowing rate from 80% to 85% while extending the minimum period of this amendment to 12 months to February 10, 2017 with a rolling evergreen provision. The Directors are comfortable with the cash flow of the business considering its plans and available credit facilities.”

Strategy

“Since June 2013, our short–term strategy has been to eliminate costs, win new customers, and improve margins. Our results for the first half of 2016, building on our full year 2015 results demonstrate that these short term strategies, put into place at the time of the recapitalization of the Company, have succeeded in creating a sustainable business model. 

“The Company's longer term strategy, as noted in the 2015 Statement to Shareholders in the annual report, continues to be one of strategic repositioning to include a market(s) directed product portfolio. As a result of this longer term strategy, some of our engineering talents continue to be concentrated in defined market areas that we believe are poised for fast market expansion. ProPhotonix is investing in additional engineering resources and will continue to make such investments in fulfillment of our strategy. In addition, ProPhotonix is in the process of expanding its sales team to increase our world–wide sales coverage.”

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Blending Creativity With Technology: How Organizations Can Update Their Learning Programs With GLTS

MARICOPA, AZ—(Marketwired – September 07, 2016) – Elearning! Media Group, publishers of Elearning! and Government Elearning! magazines, announced today the event program for the Government Learning Technology Symposium. Elearning! Magazine is the media partner of Federal Government Distance Learning Association (FDGLA) and host of GLTS.

We are happy to host the GLTS as a free conference program for government personnel engaged in distance learning, e–learning, and any technology enabled learning initiative,” reports Jolly Holden, Executive Director, FGDLA.

GLTS will hold several sessions focused on effective use of technologies for distance learning at the two–day Government Learning Technology Symposium (GLTS). Sessions include: Making Video Content Readily Available and Easily Accessible at the Time and Point of Need, Assistive Technologies (AT) and Distance Learning and A World Without Plugins – HTML 5, WebGL.

With the emergence of mobile technology and the wide amount of live and on–demand supported video content, it's the perfect time to discover the best practices of harnessing the power of these mediums. Making Video Content Readily Available and Easily Accessible at the Time and Point of Need provides insight and guidance to learning, video/media and IT professionals on what organizations are doing to educate, inform and support employee development.

Assistive Technologies (AT) and Distance Learning addresses how persons with disabilities can access web content with several use cases leveraging Assistive Technologies. It is vitally important to create accessible distance learning courses and learning management systems for all. Many resources will be shared to enable accessibility.

Many of the popular training solutions offered today rely on proprietary plugins. Can training survive in a world without them? A World Without Plugins – HTML 5, WebGL addresses the turning tide as HTML 5, WebGL, and other plugin–free technologies mature, becoming more widely adopted and what organizations can do to orchestrate that sea of change.

Professionals are accessing content anywhere, anytime, on many devices,” says Catherine Upton, Publisher, Elearning! Media Group. “We now see the emergence of intelligent systems and a 'plug free' world. It's an exciting time to be in the learning industry and many new technologies are emerging.”

Access the full event program at: https://static.secure.website/wscfus/4899501/3917302/fgdla–glts–program.pdf

Who Should Attend

GLTS is a free two–day conference for government personnel. Uniquely focused on the needs of Federal Government distance learning professionals, GLTS provides a venue for professionals to make connections, discuss the latest developments, and identify new regulations and trends that affect our industry. If you are involved in learning, talent development, mission execution, HR services, project management, team training and leadership, you should attend GLTS.

The GLTS is co–located with Government Video Expo (GV Expo), held at the Washington D.C. Convention Center, Dec. 7–8, 2016. The GV EXPO is the East Coast's largest technology event designed for video, broadcast, and AV professionals. The GLTS is produced by the FGDLA and includes two days of consecutive sessions featuring presentations on instructional design, video and animation design for distance learning, LMS integration, 508 Accessibility Compliance, Learning Record Stores, and much more.

The FGDLA is also hosting its annual awards, recognizing Federal Government agencies and organizations for their excellence in distance learning. For a full list of events during the symposium, visit http://glts.fgdlaevents.us/

About Elearning! Media Group

Elearning! Media Group is owned by B2B Media Group LLC. Elearning! Media Group consists of twelve media products including: Elearning! Magazine and eMagazine, Government Elearning! E–Magazine, Elearning! Alert, SalesTec eNews, EdTec eNews, 2elearning.com, Elearning! Web Seminar Series, Enterprise Learning! Summit and Enterprise Learning! Conference. Elearning! Media Group serves the $225 billion learning & workplace technology market. Suppliers and practitioners can follow us: online at www.2elearning.com; on Twitter: 2elearning or #ELSummit; via Facebook: Elearning!–Magazine or LinkedIn: Elearning! Magazine Network or Elearning! Summit.

About Federal Government Distance Learning Association (FGDLA)

The Federal Government Distance Learning Association (FGDLA) is a nonprofit, professional association formed to promote the development and application of distance learning in the Federal Government, in accordance with Section 501(c)(6) of the Internal Revenue Code for Business Leagues and charted by the State of Ohio. Additionally, the Association actively fosters collaboration and understanding among those involved in leveraging technology and instructional media in support of the education and training needs of the Federal Government.

Focused on supporting Federal Government agencies involved in distance learning, the FGDLA encourages the application of all forms of distance learning media, as well as embracing innovative methods in integrating instructional technologies to meet the training and education needs of the Federal Government. Our membership is derived primarily from individuals from individuals employed by the various agencies within the Federal Government. The FGDLA is a chapter of the United States Distance Learning Association employed by the various agencies within the Federal Government. The FGDLA is a chapter of the United States Distance Learning Association.