BURNABY, BC, April 22 /CNW/ - Photon Control Inc. ("Photon Control") (TSX-V: PHO), a leading developer of photonic sensors, released its audited financial results for 2009 and unaudited financial results for Q4 2009.
Despite a slow start to the year and general slowdown in the economy during 2009, Photon Control achieved strong sales and profit growth during the second half of the year, making 2009 the first profitable year in Photon Control's history. Photon Control's product sales rose substantially in Q4 2009 achieving a new sales and profit record for the quarter. Also, the second half of 2009 saw the improved business environment for the semiconductor industry which resulted in Photon Control's sales to this market doubling from quarter to quarter.
Product sales in fiscal 2009 were $5.4 million, equal to the 2008 sales, primarily due to the global economic conditions and significant demand volatility across the semiconductor sector. However, following the improved business conditions during the third and fourth quarter of 2009, Photon Control was able to achieve full-year profitability of $0.2 million, compared to a loss of $1.1 million for 2008. In addition, Photon Control continued to make significant progress in market diversification in 2009 which was reflected in sales to non-semiconductor customers of $1.5 million, accounting for 28% of total sales in 2009 and an increase of 15% over 2008 non-semiconductor sales of $1.3 million. Gross Margin for 2009 was 38% compared to 36% in 2008.
During Q4 2009, Photon Control achieved a new sales and profit record for the quarter. Q4 2009 sales were $2.6 million compared to $1.4 million in Q4 2008, an increase of $1.2 million or 86%. Sales revenue from Q4 2009 represented 48% of the total year's revenue compared to 26% from Q4 2008 sales revenue for 2008. The profit for Q4 2009 of $193,046 represented a 417% increase over Q4 2008 and reflected the increased sales through this period ($2,577,936 for Q4 2009, $1,420,234 for Q4 2008) with a larger gross profit of $268,553. The fourth quarter of 2009 continued to be influenced by the significant increase in Photon Control's order backlog, which reached a new record level of $3.5 million at December 31, 2009. This represents the value of sales orders already fulfilled in Q1 2010 and/or waiting to be fulfilled in 2010. As at the date of this news release, Photon Control's order backlog stood at $3.3 million.
Photon Control's President, Mr. Weston comments, "Thanks to successful restructuring efforts implemented in 2009 and the tremendous dedication of our employees and executive team, we are proud to report the profit results accomplished for fiscal 2009 and the positive results throughout the second half of the year. We would also like to thank our valued customers, distributors and business partners for their ongoing support and commitment to our products and business. Although the economy continues to look challenging going forward in 2010, we continue to build on the positive momentum from 2009, and to further enhance Photon Control's sales and marketing opportunities on a global scale."
Photon audited financial results are available at www.sedar.com and on Photon Control's website.
Forward-Looking Statements: The forward-looking statements in this News Release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty as to the Company's ability to successfully complete new purchase orders along the timelines expected; the Company's need for funds to achieve its goals and uncertainties as to the availability and cost of financing the Company; uncertainty as to the continued and future demand for the Company's products; the Company's present reliance on four major customers for the majority of its sales; the Company's reliance on the financial health of the semiconductor industry, a vital part of its sales, ability to continue and further enhance revenue diversification and open new market opportunities; the accuracy and reliability of the factors and assumptions of the Company listed above; the development of competing technologies and the possibility of increased competition; the effect of slow growth in the Canadian, United States and international economies generally and other economic trends and conditions in the markets that the Company and its customers serve; the effect of the risks associated with technical difficulties or delays in product introductions, improvements, implementation, product pricing or other initiatives of the Company and its competitors; factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company's products; currency fluctuations, the possibility that the Company will pursue additional development projects, in order to support existing customers, or other business opportunities.
Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company may but does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change except as may be required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. Precautionary statements made herein should be read as being applicable to all related forward-looking statements wherever they appear in this News Release. 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. develops and manufactures opto-electronic products for measurement and control. All Photon Control's products have competitive advantages in both performance and cost. Markets for Photon Control's products include semiconductor capital equipment, oil and gas, power industry, life sciences and research.
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: For further information: Company Contact: Helena Rebec, Acting Investor Relations Manager, (604) 422-8861 x 101, email@example.com