BURNABY, BC, Jan. 30 /CNW/ - Photon Control Inc. ("Photon") (TSX-V: PHO),
a leading developer of photonic sensors, makes this preliminary report of its
unaudited financial results for Q4 2007.
Revenue for Photon's Q4 ended December 31, 2007 amounted to approximately
$1,490,000 as compared to $1,877,614 for Q4 2006. As disclosed in previous
quarters in 2007, this reduction is attributed to delays incurred in the
shipment of new products to Photon's semiconductor customers. The Q4 sales
level represents a 10% increase over Q3 2007 levels. Gross margin on sales for
Q4 2006 is approximately 37%, which represents a decrease from the Q3 margin
of 43%, which had shown an increase from previous quarters in 2007 due to the
product mix in Q3.
Preliminary amounts for other expenses for Q4 2007, along with their
comparable amounts for Q4 2006, are approximately as follows: General and
Administrative $280,000 (Q4 2006: $359,291), Research and Development $550,000
(Q4 2006: $806,665), Business Development and Marketing $90,000 (Q4 2006:
$293,543), and Amortization $68,000 (Q4 2006: $52,095). In total, expenses
other than cost of sales amounted to approximately $980,000 for Q4 2007 as
compared to $1,434,995 for Q4 2006 and to $1,139,148 for Q3 2007.
In Q4 2007 Photon closed a non-brokered private placement that resulted
in the receipt of net proceeds of approximately $825,000. Cash on hand on
December 31, 2007 was approximately $1,050,000.
President Robert Blair comments, "Photon sales in Q4 were better than in
Q3, while lower than expected due considerably to delays in orders for product
lines which were planned for commercialization in 2007. The company reduced
operating costs over the year which helped offset in decline of gross margin
caused by increased exchange rate in the Canadian dollar."
Chief Operating Officer, Ivan Melnyk, adds that, "Photon is focused on
increasing sales in 2008, and receiving increasing inquiries for our spectral
products and analytical tools. Sales are anticipated in oil and gas sectors as
emission monitoring becomes a strong issue globally. Despite some anticipation
of slowing in the semiconductor capital sector, we see growing interest to
Photon products because of cost and performance advantages."
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. develops and manufactures optoelectronic products for
measurement and control. All Photon's products have competitive advantages in
both performance and cost. Markets for Photon's products include semiconductor
capital equipment, oil and gas, power industry, life sciences and research.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents herein.
For further information:
For further information: Company Contact: Lauren Nickel, Investor
Relations, (604) 422-8861 x 108, firstname.lastname@example.org