Photonic Products Group, Inc. Reports First Quarter 2010 Results

NORTHVALE, N.J., May 17 /PRNewswire-FirstCall/ -- Photonic Products Group, Inc. (OTC Bulletin Board: PHPG) has reported its consolidated financial results for its first quarter, which ended March 31, 2010.

Revenues for the first quarter were $2.8 million, unchanged from the same period last year.

Orders for the first three months were $3.2 million, up 88% compared to $1.6 million in the first three months of 2009.  First quarter 2010 bookings were higher than anticipated following a noticeable increase in requests for quotes from our customers commencing in the fourth quarter of last year.

Gross profit for the quarter was $540,000, or 19.2%, up from gross profit of $382,000, or 13.6% in the comparable quarter last year mainly as a result of work force reductions implemented by the Company near the end of last year's first quarter.  

The Company had a net loss of $274,000 for the quarter compared with a net loss of $314, 000 in the same period last year, net of a benefit from income taxes in 2009 of $236,000.  The Company had a loss per share of $0.02, basic and diluted, in the current quarter. This compares with a loss per share of $0.03, basic and diluted, in the first quarter of 2009.

Net cash provided by operating activities was $480,000 for the first quarter of 2010, up from $357,000 in the first quarter last year.  After investing and financing activities, net cash increased by $453,000 and the Company ended the quarter with cash and cash equivalents of $4.5 million. 

Joe Rutherford, President and CEO of PPGI commented, "Our first quarter results reflect the positive effect of cost reductions we made last year but we continue to experience the negative impact of last year's recession and the decrease in military spending on the specific products we produce. This has resulted in a lower backlog and decreased shipping levels in the current period, compared to pre-recession quarters. Although our first quarter bookings were ahead of expectations, we are encouraged but cautious.

Our focus will remain on improving operations, expanding our customer base, domestically and internationally, and reducing costs further through process improvements.  We will continue to  look for opportunities to improve cash flow and reduce debt.  This will position us to respond quickly and effectively to an increase in orders from our customers."

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. 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.