LONDON (Alliance News) - ProPhotonix Ltd Tuesday said it significantly narrowed its losses in the first-half of 2014 as it stripped out costs across the business and saw a strong increase in revenue.
ProPhotonix posted a pretax loss of USD484,000 for the six months to June 30, compared with a loss of USD1.6 million in the first-half of 2013.
Revenue of USD8.3 million, up 13% from USD7.4 million a year earlier, was buoyed by an improvement in business activity with higher order bookings. Order bookings through the first-half totalled USD8.6 million, up from USD8.4 million last year.
The US-based LED lighting and laser diode company said its operating performance was driven by a combination of higher revenue, product mix, cost reductions, and overhead absorption. It said further cost-cutting measures implemented in the first-half will also help reduce its break-even point on a go forward basis.
"The combination of a reduced break-even point, increased sales activity and significant new business opportunities together with the business moving towards being cash flow positive, all indicate improved prospects for 2015," said President and Chief Executive Officer Tim Losik in a statement.
The company said the revenue mix by market sector in the first-half was made up of 74% from the industrial sector, 17% from medical and 9% from security and defence. Regionally, Europe made up 49% of revenue, North America 32%, and 19% from the Rest of World region.
ProPhotonix added two new products to its product portfolio during the first-half, and said it plans to make further new product announcements later on this year which will boost production volumes in 2015 and beyond.
Earlier this month, machine tools and laser-marking company 600 Group PLC bought a 26.3% stake in ProPhotonix from other shareholders in return for 600 Group shares. 600 Group is now the biggest shareholder in the company.
ProPhotonix shares were untraded at 2.75 pence Tuesday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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