• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Photonic Products Group, Inc. Reports First Quarter 2009 Results

Posted on: Tuesday, 19 May 2009, 13:21 CDT

NORTHVALE, N.J., May 19 /PRNewswire-FirstCall/ -- Photonic Products Group, Inc. (OTC Bulletin Board: PHPG) has reported its consolidated financial results for its first quarter, which ended March 31, 2009.

Revenues for the first quarter were $2.8 million, down 32% from the same period last year.

Orders for the first three months were $1.6 million compared to $6.9 million in the first three months of 2008 with lower order activity in the first quarter of 2009 being primarily attributable to the effect of the current economic slowdown and its impact on our customers' business activity and demand for our products.

Gross profit for the quarter was $382,000, or 13.6%, down from a gross profit of $1.5 million, or 36.0% in last year's first quarter.

The Company reported a net loss of $(314,000) for the quarter just ended compared with net income of $491,000 for the same period last year. This quarter's results included a benefit from income taxes of $236,000, reflecting the Company's recognition of a deferred tax asset, net of its current tax provision. Last year's results reflected a benefit from income taxes of $52,000, net of current tax expense. (Loss)/earnings per share were $(0.03) diluted and basic in the current quarter. This compares with $0.05 basic and $0.03 diluted in the first quarter of 2008.

First quarter 2009 results showed net cash provided by operating activities of $357,000, compared to net cash used by operating activities of $223,000, in the first quarter of last year. The Company ended the quarter with cash, cash equivalents and short-term investments of $3,750,000.

Joe Rutherford, President and CEO of PPGI commented, "Our first quarter results are disappointing but not unexpected given the current economic conditions in the markets we serve. We have responded with cost cutting measures throughout both our operations in Northvale and our MRC operations in Sarasota. We have reduced our workforce levels to right size our operations to better align them with the current economic realities. Our mission remains to exceed our customer's expectations and to be responsive to those needs in the future."

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' business 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. www.ppgrpinc.com

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 its growth strategies or to integrate new operations, inability to realize synergies from its acquisitions, inability to raise capital, 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. 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.

PHOTONIC PRODUCTS GROUP, INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, 2009 2008 ------ ------ (Unaudited) (Audited) Assets ------ Current assets: Cash and cash equivalents $2,941,545 $2,672,087 Certificates of deposit 807,738 800,000 Accounts receivable (net of allowance for doubtful accounts of $15,000 in 2009 and 2008) 1,796,072 2,810,602 Inventories, net 2,639,186 2,732,336 Other current assets 259,153 188,084 Total current assets 8,443,694 9,203,109 Plant and equipment: Plant and equipment, at cost 14,482,251 14,445,027 Less: Accumulated depreciation and amortization (11,372,620) (11,139,771) Total plant and equipment 3,109,631 3,305,526 Precious Metals 157,443 112,851 Deferred Income Taxes 644,000 408,000 Goodwill 1,869,646 1,869,646 Intangible Assets, net 731,939 751,580 Other Assets 47,852 81,707 $15,004,205 $15,732,149 Total Assets Liabilities and Shareholders' Equity ------------------------------------ Current Liabilities: Current portion of notes payable - other $135,165 $136,892 Accounts payable and accrued liabilities 1,674,821 2,160,665 Customer advances 331,309 456,754 Total current liabilities 2,141,295 2,754,311 Related Party Convertible Notes Payable 2,500,000 2,500,000 Other Long Term Notes 351,467 353,663 Total liabilities 4,992,762 5,607,974 Commitments and Contingencies - - Shareholders' Equity: Common stock: $.01 par value; 60,000,000 authorized shares; 11,302,466 shares issued at March 31, 2009 and 11,230,678 issued at December 31, 2008 113,023 112,306 Capital in excess of par value 16,823,426 16,622,466 Accumulated deficit (6,910,056) (6,595,647) 10,026,393 10,139,125 Less - Common stock in treasury, at cost (4,600 shares respectively) (14,950) (14,950) Total Shareholders' Equity 10,011,443 10,124,175 Total Liabilities and Shareholders' Equity $15,004,205 $15,732,149 PHOTONIC PRODUCTS GROUP, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2009 2008 ------ ------ Total Revenue $2,815,097 $4,164,248 Cost and Expenses: Cost of goods sold 2,433,410 2,662,655 Selling, general and administrative expenses 907,079 986,813 3,340,489 3,649,468 Operating (loss) income (525,392) 514,780 Other income (expense): Interest expense-net (32,388) (75,580) Gain on sale of precious metals 7,371 - (25,017) (75,580) Net (loss) income before income taxes (550,409) 439,200 Benefit from income taxes 236,000 52,000 Net (loss) income $(314,409) $491,200 Net (loss) income per common share - basic $(0.03) $0.05 Net (loss) income per common share - diluted $(0.03) $0.03 Weighted average common shares outstanding-basic 11,260,199 10,535,075 Weighted average common shares outstanding-diluted 11,260,199 15,862,817 PHOTONIC PRODUCTS GROUP, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2009 2008 Cash flows from operating activities: Net (loss) income $(314,409) $491,200 Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: Depreciation and amortization 252,490 270,188 401(K) common stock contribution 179,068 160,181 Gain on sale of precious metals (7,371) - Deferred income taxes (236,000) (102,000) Stock based compensation 23,595 18,573 Changes in operating assets and liabilities: Accounts receivable 1,014,530 (184,226) Inventories, net 93,150 (363,989) Other current assets (71,069) (32,326) Other assets 33,855 36,721 Accounts payable and accrued liabilities (485,844) (217,335) Customer advances (125,445) (300,011) Total adjustments 670,959 (714,224) Net cash provided by (used in) operating activities 356,550 (223,024) Cash flows from investing activities: Capital expenditures (37,224) (186,363) Purchase of precious metals (53,538) - Purchase of certificate of deposit, net (7,738) - Proceeds from sale of precious metals 16,317 - Net cash (used in) investing activities (82,183) (186,363) Cash flows from financing activities: Redemption of restricted stock units (986) - Proceeds from issuance of common stock - 139,580 Exercise of warrants - 591,587 Principal payment of convertible note payable - (1,700,000) Principal payments of other notes payable (3,923) (3,699) Principal payments of capital lease obligations - (22,006) Net cash used in financing activities (4,909) (994,538) Net increase (decrease) in cash and cash equivalents 269,458 (1,403,925) Cash and cash equivalents at beginning of period 2,672,087 4,395,945 Cash and cash equivalents at end of period $2,941,545 $2,992,020 Supplemental Disclosure of Cash Flow Information: Interest paid $3,596 $482,860 Income taxes paid $50,000 $10,000

SOURCE Photonic Products Group, Inc.

Source: PR Newswire

More News in this Category