BURNABY, BC, Nov. 8, 2016 /CNW/ - Photon Control Inc. ("Photon Control" or the "Company") (TSX-V: PHO), a leading developer of optical measurement technologies for the semiconductor sector, reported preliminary unaudited financial results for the quarter ended September 30, 2016. All figures are reported in Canadian currency. The financial results are preliminary only and subject to finalization by the Company.
Photon Control expects to report the following results for the third quarter ended September 30, 2016:
- Total revenue of $8.7 million, an increase of 45% from $6.0 million in Q3 2015.
- Gross margins for Q3 2016 were 52.3% compared to 53.9% in Q3 2015.
- Net income before taxes of approximately $2.8 million compared to $2.6 million in Q3 2015. Unique period expenses relating to legal and consulting affected quarterly net income.
- Cash and cash equivalents of approximately $31.1 million, an increase of 24% from $25.0 million in Q3 2015.
- Order backlog of $8.8 million, an increase of 83% compared to $4.8 million at September 30, 2015.
"Our preliminary results for the third quarter were strong across the board, highlighted by record backlog and a 45% increase in our topline number," said Michael Goldstein, chairman and acting CEO of Photon Control. "In fact, Q3 will mark the second highest quarterly revenue level in our Company's history."
Goldstein added: "We continue to implement several measures designed to improve Photon Control, making it a stronger, more focused, and more transparent company. This includes strengthening our board with three new independent directors, recovering the $4.5 million unauthorized transfer of funds, asserting our legal ownership of IP rights to eliminate uncertainty with Photon Control R&D (the "Claim"), completing a forensic audit and an IP investigation, terminating all non-arms-length relationships, and securing new production facilities to expand capacity. The board recently initiated a Normal Course Issuer Bid program to use at least 20% of our annual free cash flow to repurchase the Company's outstanding shares. Altogether, these actions reflect our commitment to strengthen our organization, drive continued growth and cash flow generation, and provide greater visibility into how we're creating value for our shareholders."
Photon Control plans to report complete Q3 2016 financial results on November 29, 2016. 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, preliminary financial results for Q3; statements with respect to the Claim; 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, confirmation of the preliminary results for Q3; 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; the Company's evidence forming the basis of the Claim and its financial and management resources and ability to pursue the Claim; 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, the Company may face legal action arising from the matters that are the subject of the Claim; the Company may not be successful in obtaining the relief sought in the Claim and may not have all of the intellectual property rights and goodwill that it believes that it has and should have; 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; 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]