ProPhotnix crumbles as delays cut into revenues
By Iain Gilbert
Date: Friday 02 Nov 2018
(Sharecast News) - LED manufacturer ProPhotonix told investors on Friday that trading conditions had remained "positive but challenging" as it warned shareholders to expect a full-year loss of roughly $2m.
The AIM-listed outfit expects group revenues for the year ending 31 December to come to approximately $16m, a 9.6% decrease from the $17.7m recorded in 2017, after one of its key customers delayed the launch of its own next-generation product, which incorporates components manufactured by ProPhotonix.
In addition to the 26% revenue drop from the above, ProPhotonix warned of another 46% year-on-year revenue drop from a separate large customer which already had an excess of components supplied by the group.
ProPhotonix also noted that new products recently introduced to the market had taken longer than expected be adopted by the market - leading it to the $2m pre-tax loss and $500,000 LBITDA.
However, ProPhotonix remained confident looking forward with its total order book for future shipments hitting $7.2m as of 31 October.
Chief executive Tim Losik, said: "While the expected 2018 results are a disappointment for ProPhotonix, especially considering the significant momentum and improvement since the group was recapitalized in 2013, our order book remains strong and we remain optimistic about the future of the business as we build our OEM partnerships along with a comprehensive portfolio of products."
As of 0920 BST, ProPhotonix shares had tumbled 33.33% to 4p.
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