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(BSNS WIRE) StockerYale Announces Third Quarter 2003 Financial Results; Compa
StockerYale Announces Third Quarter 2003 Financial Results; Company Reports High
High-Tech Writers / Business Editors
SALEM, N.H.--(BUSINESS WIRE)--STKR--
StockerYale, Inc., (NASDAQ: STKR), an independent
provider of advanced illumination and optical products, today
announced financial results for the third quarter of fiscal 2003.
Net revenue increased 6.2% to $3.7 million in the third quarter of
2003 from $3.5 million for the same period in 2002. The Company
achieved an 18% growth rate in its illumination sales, which offset
flat revenues in the optical sector and a $0.3 million decline in the
printer and recorded product line, which the Company transferred to a
distributor in November of 2002. Excluding the printer and recorder
product line, sales increased 16.1% for the third quarter versus the
comparable quarter in 2002. The operating loss, excluding asset
impairment charges of $0.6 million, declined 40% from $2.6 million to
$1.6 million as the Company continued to benefit from higher revenues,
improved gross margins and a dramatically reduced operating cost
structure. Net cash used in third quarter 2003 operations declined to
$0.8 million, versus $2.1 million reported in the third quarter of
2002 and $1.1 million in the previous quarter.
"The third quarter results reflect the Company's continued efforts
to aggressively manage costs throughout the organization while
focusing on marketing and selling its new LED, laser and fiber optic
illuminator products," said Mark W. Blodgett, StockerYale's chairman
and chief executive officer. Blodgett outlined a number of quarterly
highlights, including:
-- Achieved record shipments of LEDs, including infrared
illuminators for mobile license plate security ID systems in
Italy.
-- Delivered new structured light lasers for automated postal
sorting systems.
-- Launched Model 21 fiber optic illuminator for use in the
machine vision and inspection industry.
-- Increased on-going revenues 16%.
-- Improved gross margin from 20% to 26%.
-- Closed Maryland specialty fiber facility.
-- Reduced headcount from a high of 275 in 2002 to 145.
-- Placed a $2.5 million convertible note and renewed senior
credit facility.
-- NASDAQ reaffirmed National Market System Listing.
FINANCIAL REVIEW
Third Quarter 2003
Excluding revenue from the printer and recorder product line,
revenues grew 16.1% to $3.7 million, principally due to record LED
product shipments from the Company's subsidiary in Ireland.
The operating loss, excluding a one time charge of $0.6 million
related to the shut down of the Maryland facility and a related
equipment deposit, declined $1.0 million or 40% due to higher
revenues, a gross margin improvement from 20% to 26%, and a 24%
reduction in operating expenses with research & development
representing $0.7 million or 85% of the expense savings. Reduced
salaries and the termination of two joint ventures were the primary
factors for the decline in research & development expenses. Selling,
and general & administrative expenses declined $0.1 million or 7%
based upon reduced salaries and marketing expenses.
As recently announced, the Company placed a $2.5 million
convertible note with Laurus Master Funds and established a new $3.5
million credit facility with Merrill Lynch Business Financial
Services.
Frank O'Brien, StockerYale's executive vice president and chief
financial officer stated, "Our focus on aligning the Company's cost
structure with revenues has resulted in the continued improvement of
our financial performance. In addition, we continue to take steps to
improve our balance sheet, including recent financings along with
planned asset dispositions," O'Brien added.
Year-to-Date Third Quarter
Excluding the asset impairment charge in the third quarter,
revenue growth, improved gross margins, and a 33% reduction in
operating expenses contributed to a $5.1 million or 47% reduction in
the 2003 operating loss compared to 2002.
Revenues increased $1.0 million or 10% to $10.8 million as higher
illumination sales, especially in the laser and LED product lines,
offset lower phase mask sales and the transfer of the printer and
recorder product line in 2002. Excluding the printer and recorder
product line, revenues in 2003 increased 20% compared to 2002. Gross
margins increased to 25% in 2003 versus 17% in 2002 largely due to
reduced manufacturing overhead. In addition, lower salaries and
benefits, reduced joint venture costs, and tighter controls on
discretionary expenses were the prime factors in a 33% reduction in
operating expenses.
Outlook
"Over the past nine months we have increased our R&D investments
in new illumination products while reducing investments in specialty
fibers and phase masks where market opportunities continue to be
limited," said Mark W. Blodgett, StockerYale's chairman and chief
executive officer.
Blodgett continued, "Year-to-date results reflect the benefits
that our diversified optics strategy is having in addition to the
positive affects of our cost reduction programs. Looking forward we
will continue to aggressively position and market our new illumination
products, look for additional cost savings, and pursue targeted asset
sales with the goal of significantly reducing long term debt by the
summer of 2004."
About StockerYale
StockerYale, Inc., headquartered in Salem, NH, is an independent
designer and manufacturer of structured light lasers, light emitting
diodes, (LEDs), fiber optic, and fluorescent illumination technologies
as well as specialty optical fiber and phase masks for use in a wide
range of markets and industries including the machine vision,
telecommunications, aerospace, defense and security, utilities,
industrial inspection, and medical markets.
StockerYale serves a widely varied, international customer base
and reinvests a significant percentage of its revenues in R&D to meet
the future requirements of its customers. StockerYale has offices and
subsidiaries in the U.S., Canada, Europe, and the Pacific Rim.
For more information about StockerYale and their innovative
products, contact StockerYale, Inc., 32 Hampshire Rd., Salem, NH,
03079. Call 800-843-8011; Fax 603-893-5604; Email
info@stockeryale.com.
Notice to Investors:
This press release contains forward-looking statements that do not
give full weight to all the potential risks, but relate to
StockerYale's plans, objectives, and expectations, which are dependent
upon a number of factors outside of StockerYale's control including,
but not limited to: uncertainty that StockerYale's new photonics-based
products launched in 2002 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 StockerYale's ability to capitalize
on its significant research and development efforts by successfully
marketing those products that the Company develops. You should also
refer to the discussion under "Certain Factors Affecting Operating
Results" in StockerYale's form 10K for additional matters to be
considered in this regard. Thus, actual results may differ materially.
All Company, brand, and product names are trademarks or registered
trademarks of their respective holders. StockerYale undertakes no duty
to update any of these forward-looking statements.
This press release also 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 relating to, among other
things, the Company's future operating results and sales trends.
Reliance should not be placed on forward looking statements because
they involve known and unknown risks, uncertainties and other factors
which are in some cases, beyond the control of StockerYale, which may
cause the actual results, performance or achievements of the Company
to differ materially from anticipated future results, performance or
achievements expressed or implied by such forward looking statements.
-0-
*T
Consolidated Statement of Operations
($ in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Net Sales $3,670 $3,456 $10,840 $9,887
Cost of Sales 2,724 2,758 8,159 8,249
Gross Profit 946 698 2,681 1,638
Research & Development
Expenses 831 1,488 2,647 5,241
Selling, General &
Administrative
Expenses 1,594 1,717 5,477 6,919
Amortization Expense 80 81 239 250
Asset Impairment 605 - 605 -
Operating Income/(Loss) (2,164) (2,588) (6,287) (10,772)
Interest & Other
Income/(Expense) 15 75 (115) 265
Interest Expense 290 95 726 265
Pretax Income/(Loss) (2,439) (2,608) (7,128) (10,772)
Tax Provision (Benefit) 14 0 (136) 0
Net Income/(Loss) ($2,453) ($2,608) ($6,992) ($10,772)
Earnings/(Loss) Per
Share ($0.17) ($0.20) ($0.52) ($0.85)
Weighted Average Shares
Outstanding 14,401,330 12,771,524 13,500,712 12,656,020
Assets September 30, 2003 December 31, 2002
Cash $2,338 $3,070
Restricted cash - 2,000
Accounts Receivable, Net 2,591 2,200
Inventory 4,380 4,478
Total Current Assets 9,882 12,495
Property, Plant &
Equipment, Net 22,099 23,650
$37,144 $41,320
LIABILITIES AND
STOCKHOLDERS EQUITY
Current Liabilities 11,213 16,262
Total Liabilities 16,082 16,358
Stockholders Investment 21,062 24,692
$37,144 $41,320
*T
KEYWORD: NEW HAMPSHIRE
INDUSTRY KEYWORD: MANUFACTURING CHEMICALS/PLASTICS AEROSPACE/DEFENSE TELECOMMUNI
SOURCE: StockerYale, Inc.
CONTACT INFORMATION:
StockerYale, Inc.
Fred Pilon, 603-870-8229
fpilon@stockeryale.com
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