PPIX.L Share News (PPIX)

LONDON (Alliance News) - ProPhotonix Ltd Thursday reaffirmed its half-revenue expectations after lowering its costs and securing a new contract.

The independent designer and manufacturer of diode-based laser modules and LED systems said it has reaffirmed its current expectations for first-half revenue to come in between USD7.8 million to USD8.2 million after its trading performance since the beginning of the year has benefited from the LED and laser market sectors.

In a statement released ahead of ProPhotonix's annual general meeting Thursday, President and CEO Tim Losik said "While pleased with the on-going development of the Group's revenue base, we maintain our focus on cost control and efficiency to ensure we achieve a sustainable break-even point for the Company as soon as practicable."

The company has initiated actions to lower its costs by approximately USD900,000, it said, and will incur one-off charges of USD150,000, in the first-half of 2014, associated with these actions.

Since the beginning of the year ProPhotonix has secured a significant two-year customer contract that is part of its total backlog of USD8.4 million as of May 16, 2014, it said. In addition, the company said several significant prototype products have recently shipped to customers with the firm awaiting final design modifications for the transition to production units during the second-half 2014.

Shares in ProPhotonix were trading 12.09% lower at 2 pence per share Thursday morning.

By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance

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