Q109 results - not positivePhoton Control Reports Financial Results for Quarter Ended March 31, 2009
BURNABY, BC, May 28 /CNW/ - Photon Control Inc. ("Photon") (TSX-V: PHO),a leading developer of photonic sensors, released its unaudited financialresults for Q109. Revenue for the first quarter of 2009 was $0.6 million compared withrevenue of $1.4 million for the fourth quarter of 2008. Gross Margin for Q109was 47% compared to 34% for Q408. The loss for the quarter ended March 31, 2009 was $0.16 million ($0.00per share) as compared to the profit for the quarter ended December 31, 2008of $0.04 million ($0.00 per share), primarily due to the prevailing businessenvironment slowdown across the semiconductor sector, reduction in sales toone of the Company's major accounts and global economic conditions. Photontook positive action to mitigate these circumstances by reducing operatingexpenses, improving gross margins and generating new sales tonon-semiconductor customers. Also, in Q109 the company reduced salary expensesby approximately 20% through participation in the Work-Sharing program whichis part of the Employment Insurance program under Human Resources and SkillsDevelopment Canada. During these tough economic conditions, Photon continuesto deliver high quality, value-added services to its customers. As at May 28, 2009, Photon's Order Backlog stood at $0.8 million,compared to $0.3 million for Q109. Interim President Michael Weston, comments, "In 2009 Photon continued aninitiative to establish new sources of revenues for existing and futureproducts by continuing support of its diversification strategy, opening marketopportunities and developing relationships with new distributors. Also, wecontinue to take decisive actions to achieve lean manufacturing, improvedoperational efficiency and effective cost savings solutions." Photon's financial results and MD&A are available at www.sedar.com andwill be posted on Photon's website. Forward-Looking Statements: This news release contains forward lookingstatements, including statements regarding the business and anticipatedfinancial performance of the Company, which involve risks and uncertainties.These risks and uncertainties may cause the Company's actual results to differmaterially from those contemplated by the forward-looking statements. Factorsthat might cause or contribute to such differences include, among others,competitive pressures, competing technologies and the market acceptance of theCompany's photonic-based products as a replacement to existing technologiesand products. Readers are encouraged to consider the other risks anduncertainties discussed in and additional information contained in theCompany's required financial statements and filings filed on SEDAR atwww.sedar.com.