StockMarketWire.com - LED lighting supplier ProPhotonix swung to an annual loss, as its revenue was hurt by a customer's delayed product launch and expenses rose.

Pre-tax losses for the year through December amounted to $1.3m, compared to a profit of $1.6m on-year.

Revenue fell 8% to $16.4m, while profit margins contracted to 38.7%, from 44.6%.

'2018 has been a challenging year for the company with setbacks in revenue, gross profit, and net income,' chief executive Tim Losik said.

The final revenue and loss results where, however, slightly better than figures forecast in November.

The fall in sales was due in large part to the decline in business with one customer's delayed new product launch, Losik saied.

Gross profit fell 20% primarily from 'unabsorbed manufacturing overhead due to lower sales volumes', he added, while R&D costs also rose.

Bookings in the first thirteen weeks of 2019 were $4.2m, down from $4.3m onyear, while the backlog rested at $7.8m, up from $7.4m.

'ProPhotonix has received initial production orders for a customer delayed product launch and expects fully to ramp up production in the second quarter of 2019, the company said.

'Development of the Cobra Cure UV LED products continues with ever increasing intensity, as evidenced by the two recently awarded patents from the US Patent and Trademark Office relating to the UVLED products.'

'The directors remain positive about our business pipeline and confident in our ability to resume growth.'






Story provided by StockMarketWire.com