BURNABY, BC, Nov. 15 /CNW/ - Photon Control Inc. ("Photon") (TSX-V: PHO),
a leading developer of photonic sensors, releases its unaudited financial
results for the third quarter ended September 30, 2007.
Sales for Q3 2007 totalled $1.4 million, similar to Q2 2007. Sales for
nine months ended September 30, 2007 were $4.6 million, an increase of 9% as
compared to those nine months for 2006.
Photon continues to expect OEM sales to its semiconductor customers to
rise as new product lines commence. Sales also are expected to grow from
Photon's analytical tools - spectrometers and total sulphur analyzers. Photon
sees sharply growing interest to its optical flow meters for flare gas
measurement due to increasing demand on emission monitoring.
As it became apparent in Q3 2007 that sales of semiconductor products
would grow slowly for a period and also that ramp up for volume sales of
products for the oil and gas sector will extend into 2008, the Company
implemented another round of reduction of staff and expenses. This reduced
cash use for operations to $268,692 in Q3 2007, notwithstanding the Quarter's
expense of $61,825 from the rise of the Canadian dollar exchange rate.
Management believes that prudent funding for operations is provided by
cash at hand of $600,000 September 30, which approximate amount continues
November 15, plus imminent closing of the private placement for net proceeds
of about $740,000 and additional comfort of a bank credit line of $500,000.
Gross Margin for Q3 2007 was 43%, similar to the margin realized in Q3
2006 but improved from 37% in Q2 2007 due to the product diversification in Q3
2007 sales. YTD 2007 margin is 41% compared to 45% in YTD 2006, which is
indicative largely of the effects of the rise of the Canadian dollar exchange
The accounting Net Loss for Q3 2007 was $0.6 million, as compared to a
$1.0 million in Q3 2006 and in Q2 2007. Company reduced expenditures by
putting on hold R&D projects which were not supported by direct commitment
from the customers.
"Q3 2007 became a period of further reduction of operating cost while
also of retaining readiness to proceed on the exciting potential," said its
Executive Chair, Robert Blair. "Photon's sales to the semicon market are
picking up now with a few new products at final stages of approval for
production release by the customers. Photon's strength of developing advanced
technologies is going to be capitalized finally in oil and gas sectors due to
increasing needs for emission monitoring," says Chief Operating Officer, Ivan
Photon's financial results and MD&A are available at www.sedar.com and
will be posted on Photon's website.
This News Release contains forward-looking statements about Photon
Control Inc. (the "Company") and its business. Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by the words "expects," "anticipates," "believes," "intends,"
"estimates," "projects" and similar expressions, or that events or conditions
"will," "may," "could" or "should" occur.
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 product development along the timelines expected;
the Company's need for funds to achieve its goals and uncertainties as to the
availability and cost of funding; uncertainty as to the continued and future
demand for the Company's products; the Company's present reliance on one major
customer for about 65% of its sales; the Company's reliance on the financial
health of the semiconductor industry for 95% of its sales, and continued
financial health of that industry; 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 development, 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 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 does not assume any obligation to update its forward-looking
statements if those beliefs, opinions or expectations, or other circumstances,
should change. 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.
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