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,
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
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.
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