FOR IMMEDIATE RELEASE
Friday, August 13, 2010
Source: Photonic Products Group, Inc.
SECOND QUARTER AND SIX MONTHS 2010 FINANCIAL RESULTS RELEASED BY PHOTONIC PRODUCTS GROUP, INC.
NORTHVALE, NJ, August 13 – Photonic Products Group, Inc. (OTC Bulletin Board: PHPG) today reported its consolidated financial results for its second quarter and six months ended June 30, 2010.
Revenue for the second quarter was approximately $2.16 million, down from $2.62 million in the same period last year. For the six months ended June 30, 2010, revenue was $4.97 million compared to $5.43 million for the comparable 2009 period, down 8.5%.
Orders for the second quarter were $1.54 million, bringing orders for the six months to $4.24 million compared to $4.80 million for the same six month period last year. Second quarter 2010 bookings were lower than anticipated as one customer order for approximately $600,000 was pushed out until later in the year.
Gross profit for the quarter was $256,000, or 11.8%, down from a gross profit of $419,000, or 16.0% in the comparable quarter last year, reflecting the impact of lower sales leveraged by the Company’s high percentage of fixed overhead costs.
The net loss for the quarter was $649,000 and $923,000 for the six months ended June 30, 2010. This compares with a net loss of $337,000 and $651,000, in the same periods last year. The three month and six month periods last year, reflect the positive impact of an income tax benefit of $156,000 and $392,000, respectively. The Company had a net loss per share of $0.06, basic and diluted, in the current quarter and a net loss per share of $0.08, basic and diluted, for the six months ended June 30, 2010. This compares with a net loss per share of $0.03, basic and diluted, in the second quarter of 2009 and a net loss per share of $0.06 for the six months ended June 30, 2009.
For the six months ended June 30, 2010, net cash provided by operating activities was $455,000, down slightly from $485,000, for the same period last year. After investing and financing activities, net cash increased by $394,000 and the Company ended the quarter with cash and cash equivalents of $4.46 million.
Joe Rutherford, President and CEO of PPGI commented, “We are obviously disappointed by our results this quarter and year-to-date. However, we had expected a difficult first half of 2010 with improvements in business conditions beginning in the second half of the year. During the past several quarters, our results have reflected a significant decline in new orders from our commercial market customers. This was further exacerbated by a slowdown in military spending. We continue to focus on reducing all of our costs and the reductions we made last year continue to counter the effect of lower sales volumes. This should allow us to quickly return to profitability with an upturn in business. Although our bookings for the six months were lower than expected, we are encouraged by the addition of almost $2 million in orders in July. Our outlook remains one of cautious optimism for the balance of the year and into 2011.”
Founded in 1973, Photonic Products Group, Inc. develops, manufactures, and markets products and services for use in diverse Photonics industry sectors via its portfolio of distinctly branded businesses. INRAD specializes in crystal-based optical components and devices, laser accessories and instruments. Laser Optics specializes in precision custom optical components, assemblies, and optical coatings. MRC Optics’ specializes in precision diamond turned optics, metal optics, and opto-mechanical and electro-optical assemblies. PPGI’s customers include leading corporations in the Defense and Aerospace, Laser Systems, and Process Control and Metrology sectors of the Photonics Industry, as well as the U.S. Government. Its products are also used by researchers at National Laboratories and Universities world-wide. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", “should”, "will", "plan", “anticipate”, “targeting” or similar words. Such forward-looking statements, such as our expectation for revenues, new orders, and income, involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward looking statements are, but are not limited to, uncertainties in market demand for the company's products or the products of its customers, future actions by competitors, inability to deliver product on time, inability to implement process improvements in its operations, inability to retain key employees or hire new employees, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission including the risk factors in our annual report on Form 10-K for the year ended December 31, 2009. The forward looking statements made in this news release are made as of the date hereof and Photonic Products Group, Inc. does not assume any obligation to update publicly any forward looking statement.
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