ProPhotonix Limited Announces Results for the Year Ended December 31, 2019

Rhea-AI Summary

ProPhotonix Limited (OTC PINK:STKR) reported its 2019 financial results, revealing a revenue of $14.98 million, down from $16.40 million in 2018. The company achieved an operating profit of $1.1 million, a significant turnaround from a loss of $1 million the previous year, largely attributed to a stock compensation benefit. However, a material uncertainty regarding the company's going concern was highlighted by auditors. As of December 31, 2019, cash and cash equivalents stood at $1.5 million. The final audited results will be published by September 30, 2020, with an annual report available on their website.

Positive

• Operating profit for 2019 was $1.1 million, a recovery from a loss of $1 million in 2018.
• Reduction in net loss to $0.157 million in FY19 from a loss of $0.242 million in 2018.

Negative

• Revenue decreased to $14.98 million in 2019 from $16.40 million in 2018.
• Auditor's opinion raised material uncertainty regarding the company's ability to continue as a going concern.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

SALEM, NH / ACCESSWIRE / August 27, 2020 / ProPhotonix Limited (London Stock Exchange - AIM:PPIX,) (OTC PINK:STKR), a leading technology designer and manufacturer of LED illumination systems and laser diode modules, today announces its 2019 financial results and notice of availability on the Company's web site.

2019 Summary Results

Revenue for 2019 was $14.98 million (2018: $16.40 million). Operating profit was $1.1 million (2018: loss $1.0 million) mainly due to a stock compensation benefit from the lack of attainment of the vesting criteria on stock options ($1.2 million) versus the expense to the Income Statement in 2018 of $1.1 million. Excluding the effect of stock compensation benefit/expense, the net loss in FY19 was $0.157 million (2018: loss $0.242 million). Cash and cash equivalents at December 31, 2019 was $1.5 million (2018: $1.9 million). Detailed financial results and notes follow.

Shareholders are advised that the Auditors Opinion, while unqualified, contains a material uncertainty as to going concern, due to the matters disclosed in note 1 to the financial statements. The details of the Auditors Opinion are contained the Annual Report and Accounts which will be available on the Company's website.

Posting of Results

The Company will publish and post its final audited results for the year ended 31 December 2019 on or before September 30, 2020. The Annual Report and Accounts will be available on the Company's website on or before September 3, 2020, at www.prophotonix.com.

For further information:

ProPhotonix Limited
Tim Losik	President and CEO Tel: +1 603 893 8778 Email: ir@prophotonix.xom
WH Ireland Limited
Katy Mitchell Matthew Chan	Nominated Adviser and Broker Tel: +44 (0) 20 7220 1666

Cautionary Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including without limitation, those with respect to ProPhotonix's goals, plans and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: uncertainty that cash balances may not be sufficient to allow ProPhotonix to meet all of its business goals; uncertainty that ProPhotonix's new products will gain market acceptance; the risk that delays and unanticipated expenses in developing new products could delay the commercial release of those products and affect revenue estimates; the risk that one of our competitors could develop and bring to market a technology that is superior to those products that we are currently developing; and ProPhotonix's ability to capitalize on its significant research and development efforts by successfully marketing those products that the Company develops. Forward-looking statements represent management's current expectations and are inherently uncertain. All Company, brand, and product names are trademarks or registered trademarks of their respective holders. ProPhotonix undertakes no duty to update any of these forward-looking statements.

Click on, or paste the following link into your web browser, to view the full announcement.

http://www.rns-pdf.londonstockexchange.com/rns/2592X_1-2020-8-26.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: ProPhotonix Limited

View source version on accesswire.com:
https://www.accesswire.com/603568/ProPhotonix-Limited-Announces-Results-for-the-Year-Ended-December-31-2019

FAQ

What were ProPhotonix's financial results for 2019?

ProPhotonix reported a revenue of $14.98 million and an operating profit of $1.1 million for 2019.

What is the stock symbol for ProPhotonix?

The stock symbol for ProPhotonix is STKR.

When will ProPhotonix publish its final audited results for 2019?

ProPhotonix will publish its final audited results by September 30, 2020.

What concerns did auditors express regarding ProPhotonix's financial health?

Auditors expressed a material uncertainty about ProPhotonix's ability to continue as a going concern.

How much cash did ProPhotonix have at the end of 2019?

ProPhotonix had cash and cash equivalents of $1.5 million at December 31, 2019.