Photon Control Reports Solid Sales and Sustained Profitability in Q1 2011

BURNABY, BC, June 8, 2011 /CNW/ - Photon Control Inc. ("Photon Control") (TSX-V: PHO), a leading developer of innovative measurement technologies, released its unaudited financial results for the first quarter ended March 31, 2011.

Photon Control continued to build on the positive momentum from 2010, achieving solid sales and sustained profitability throughout the first quarter of 2011.  Product sales in Q1 2011 were $3.3 million compared to $3.6 million in Q1 2010, a decrease of $0.3 million or approximately 9%.  The profit for Q1 2011 was $455,664 representing a decrease of approximately 49% compared to Q1 2010 profit of $894,158.  However, both product sales and profit showed an increase compared to the fourth quarter of 2010; product sales increased by $0.4 million or 14% and profit increased by $282,717 or approximately 163% compared to the previous quarter Q4 2010.  The negative impact of U.S. dollar exchange rate on revenues in Q1 2011 was approximately $85,900.

Although volume shipments and revenues have continued to be strong, the Company's profitability in Q4 2010 and Q1 2011 has been notably impacted by: capital investment in the computer software in order to synchronize the Company's departments and ensure the Company's ability to adopt and record transactions under International Financial Reporting Standards ("IFRS") as of January 1, 2011; increased legal expenses related to three lawsuits (two of the lawsuits were settled in Q2 2011, as announced in the News Release dated May 24, 2011); and the exchange rate due to a stronger Canadian dollar.

Despite these challenges, Photon Control continued to experience more stable market conditions securing a strong volume of orders from semiconductor sector and a continued inflow of orders from non-semiconductor sector, which reached $0.5 million in Q1 2011, an increase of approximately 25% over Q1 2010 non-semiconductor sales.  In addition, Photon Control continued to implement better communication procedures with existing distributors for increasing productivity and marketing initiatives thus, in Q1 2011, the Company brought on a Sales Executive for the Asia market to help strengthen and open communication channels with existing and potential customers.

The first quarter of 2011 continued to report a strong order backlog.  At March 31, 2011 Photon Control's backlog stood at $2.6 million and, as at the date of this news release, at $2.3 million.  This represents the value of sales orders already fulfilled in Q2 2011 and/or waiting to be fulfilled in Q2 and Q3 2011.

Also, Photon Control appointed Mr. Vernon Smith, CGA, to the position of Interim Chief Financial Officer, effective immediately.  Mr. Smith received his Certified General Accountant designation in 1987 and has 25 years of management and accounting experience.

Photon Control's financial results and MD&A are available at www.sedar.com and will be posted on Photon Control's website.

Forward-Looking Statements: This news release contains forward looking statements, including statements regarding the business and anticipated financial performance of the Company, which involve risks and uncertainties.  These risks and uncertainties may cause the Company's actual results to differ materially from those contemplated by the forward-looking statements.  Factors that might cause or contribute to such differences include, among others, competitive pressures, competing technologies and the market acceptance of the Company's photonic-based products as a replacement to existing technologies and products.  Readers are encouraged to consider the other risks and uncertainties discussed in and additional information contained in the Company's required financial statements and filings filed on SEDAR at www.sedar.com.

About Photon Control Inc.    www.photon-control.com

Photon Control Inc. commercializes and develops innovative measurement technologies specializing in Oil & Gas, Semiconductor, Power and Manufacturing industries world wide. Photon Control's products have competitive advantages in both performance and cost. Photon Control's mission is to preserve and improve human life through the creation of innovative measurement technologies. Headquartered in Burnaby, BC, Photon Control Inc is listed on the TSX Venture, trading under the symbol ''PHO." Additional information about the company can be found at www.photon-control.com/investorrelations.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Photon Control Inc.

For further information:

Company Contact: 



Helena Rebec, Chief Administrative Officer
604.422.8861 x 101
hrebec@photon-control.com

 


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