Y-Y 47 % Revenue Increase, 57% Backlog Increase
BURNABY, BC, Feb. 27, 2017 /CNW/ - Photon Control Inc. ("Photon Control" or the "Company") (TSX-V: PHO), a leading developer of optical measurement technologies, reported preliminary unaudited financial results for the quarter ended December 31, 2016. All figures are reported in Canadian dollars. The financial results are preliminary only and subject to change based on the Company's customary year-end audit review process.
Photon Control expects to report the following results for the fourth quarter ended December 31, 2016:
- Total revenue of approximately $8.5 million, an increase of 47% from $5.8 million in Q4 2015
- Gross margins of approximately 50.3% compared to 50.0% in Q4 2015
- Net income before taxes continued to be impacted partially by unique expenses, including legal and consulting expenses
- Cash and cash equivalents of approximately $32.5 million at December 31, 2016, an increase of 24% from $26.2 million as at the end of Q4 2015
- Order backlog was $8.8 million at the end of Q4 2016, an increase of 57% compared to $5.6 million at December 31, 2015
Photon Control plans to report complete financial results for the fourth quarter and full year of 2016 at the end of March. The conference call details will be announced at least a week prior to the call.
About Photon Control Inc.
Photon Control Inc. designs, manufactures and distributes a wide range of optical sensors & instruments to measure temperature, pressure, position, and flow. These products are used by original equipment manufacturers (OEM) as well as end-users in the Semiconductor, Oil and Gas, Power, Life Science, and Manufacturing industries. Photon Control's products provide high accuracy and reliability in extreme conditions and are supported by a team of experts that offer onsite installation, training, and support. Photon Control Inc. also provides engineering services for customized optical measurement systems. Headquartered in an ISO 9001:2008 manufacturing facility in Burnaby, BC, Photon Control Inc. is listed on the TSX Venture Exchange, trading under the symbol ''PHO". For additional information about the Company, please visit www.photon-control.com/investorrelations.html.
This News Release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the business and anticipated financial performance of the Company and include, without limitation, estimates of preliminary financial results for Q4; additional controls and measures to be taken by the Company; and the Company's objectives, goals, liquidity, sources of capital, expectations of sales and continued development of technologies and products.
These forward-looking statements are based on certain factors and assumptions, including, without limitation, Litigation with Photon Control R&D Ltd. (the "Dispute"), confirmation of the preliminary results for Q4; the Company's ability to successfully complete new purchase orders along the timelines expected; continued and future demand for the Company's products; continued sales to the Company's major customers; the continued financial health of the semiconductor industry; and the Company's ability to continue and further enhance revenue diversification and open new market opportunities; its financial and management resources and ability to pursue and successfully resolve the Dispute; and the Company's ability to successfully transition management and board transitions.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation, risks of legal action arising from the matters that are the subject of the Dispute; Risks in not resolving the Dispute, the impact of the Dispute on the Company's intellectual property rights and goodwill; additional measures and controls may not be implemented as expected or along the timelines anticipated; uncertainties relating to the market for the Company's products and maintaining a stable level of orders; fluctuations in revenue as a result of volatility in the markets and product mix; risks relating to the Company's present reliance on four major customers for the majority of its sales; risks relating to the Company's reliance on the financial health of the semiconductor industry; risks relating to the development of competing technologies and the possibility of increased competition; the effect of slow growth in the United States, the Company's principal market, as well as in Canada and other economies generally and other economic trends and conditions in the markets that the Company and its customers serve; including risks of trade barriers being imposed by the United States; risks associated with technical difficulties or delays in product introductions, improvements, implementation; uncertainties in product pricing or other initiatives of the Company and its competitors; uncertainties in factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company's products; risks relating to currency fluctuations, particularly between the Canadian and United States dollars; and risks in pursuing additional development projects to support existing customers or pursue other business opportunities.
The foregoing assumptions, risks and uncertainties are not exhaustive of the items that may affect our forward-looking statements. Should underlying assumptions prove to be incorrect or one or more of these risks and uncertainties materialize, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements included herein if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
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: Investor Relations Contact: Matt Glover or Najim Mostamand, Liolios Group, Inc., 949.574.3860, [email protected]