ProPhotonix reports a smaller loss in first half
Sales, at $8.3 million, up 13 percent from 2013
ProPhotonix lost nearly half a million dollars in the first half of 2014, despite increasing revenue and cutting expenses.
The company – headquartered in Salem but with its major facilities in England and Ireland – did have a better half than in 2013, when it lost $1.5 million. But it now owes $700,000 more than it has, a negative equity that is double what it was at the beginning of this year.
ProPhotonix – formerly StockerYale – employs over 90 people designing and manufacturing LED and laser optical systems used in the industrial, medical and defense industries.
Traded on both the London exchange in England and the Pink Sheets in the United States, half of the company’s sales are now in Europe.
Sales, which totaled $8.3 million in the first half of year, were up 13 percent compared to 2013. The company reported a 15 percent increase in sales of LED systems, which are made in Cork, Ireland, and an 11 percent increase in sales of laser modules and diode made at Hatfield Broad Oak in England.
In addition, the company was able to cut its operating expenses by $700,000 while leaving its research and development budget mainly intact. Most of those cuts were at the administrative level.
The company emphasized that it would have earned a $100,000 profit for the half if accounting regulations didn’t require including expenses such as borrowing costs (about $342,000) and $114,000 for stock-based compensation.
“During the first half of 2014, the company has experienced an improvement in business activity,” said, Tim Losik, president and CEO. “The combination of a reduced break-even point, increased sales activity and significant new business opportunities together with the business moving towards being cash flow positive, all indicate improved prospects for 2015.”