Photonic Products Group, Inc. Releases Financial Results for Second Quarter and Six Months 2011

NORTHVALE, N.J., Aug. 15, 2011 /PRNewswire/ -- Photonic Products Group, Inc. (OTC Bulletin Board: PHPG) today reported its consolidated financial results for its second quarter and six months ended June 30, 2011.

Revenue for the second quarter was approximately $3.22 million, up 49% from $2.16 million in the same period last year.  For the six months ended June 30, 2011, revenue was $6.46 million or 30% higher, compared to $4.97 million for the comparable period last year.

Orders for the second quarter were $3.48 million and $6.18 million for the six months ending June 30, 2011, up 126% and 46%, respectively, compared to last year's second quarter and six month bookings of $1.54 million and $4.24 million.

Gross profit for the quarter was $784,000, or 24.3%, up from a gross profit of $256,000, or 11.8% in the comparable quarter last year.  For the six months ended June 30, 2011, gross profit rose to $1.66 million or 25.6% versus $796,000 or 16.0% last year.  The improvement primarily reflects the impact of higher sales leveraged by the Company's high percentage of fixed overhead costs.

The net loss for the quarter was $96,000 and $61,000 for the six months ended June 30, 2011. This compares with a net loss of $649,000 and $923,000, in the same periods last year.  The Company had a net loss per share of $0.01, basic and diluted, in both the current quarter and for the six months ended June 30, 2011.  This compares favorably with a net loss per share of $0.06 and $0.08, basic and diluted, for the three and six months ended June 30, 2010.

Net cash provided by operating activities was $53,000 for the six months ended June 30, 2011 compared to net cash of $455,000 in the comparable period last year, the difference reflecting the Company's payment of $675,000 of accrued and current interest on convertible notes and an increase in working capital required to support the higher level of business activity in the current period.    

After investing and financing activities, net cash decreased by $83,000 compared to an increase of $394,000 last year.  The Company ended the quarter with cash and cash equivalents of $4.28 million. 

Joe Rutherford, President and CEO of PPGI commented, "I am encouraged by our increased bookings and sales in the first half of this year and the results are aligned with our expectations at the start of 2011.  Bookings have improved by 46% compared with the first six months of last year. We continue to focus on improving our balance sheet and reducing our debt with the payment of $675K in convertible debt interest. We are selectively investing in improving our bench strength in engineering and equipment. Our cash position remains strong at $4.3M. I continue to be optimistic that the company is poised for continued growth and profitability."

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' 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.

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 process improvements in its operations, 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 including the risk factors in our annual report on Form 10-K for the year ended December 31, 2010. 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.

SOURCE Photonic Products Group, Inc.