StockerYale, Inc. (STKR), a leading designer and manufacturer of structured light lasers, LED modules and specialty optical fibers for industry leading OEMs, has announced the company’s financial results for the third quarter that have concluded on September 30, 2007. During this fiscal period, financials include the recent company acquisition dated October 31, 2006, where STKR acquired Photonic Products Ltd.
Third Quarter 2007 Financial and Business Highlights
• Revenues increased to a record $7.9 million, an increase of 75% from the third quarter revenue in 2006.
• Gross profit that was record totaled $2.7 million, an increase of 70% year-over-year and 16% quarter-over-quarter.
• Specialty optical fiber and LED sales increased 96% and 43% over third quarter 2006, respectively.
• The Specialty Optical Fiber (SOF) division and Photonic Products subsidiary each received the largest contracts in corporate history.
• The Company has also entered into a distribution agreement with Newport Corporation for StockerYale’s line of specialty optical fiber products.
• The Company has entered into an optical fiber contract from Northrop Grumman Newport News for the U.S. Navy’s Virginia class submarine fleet.
Chairman and Chief Executive Officer Mark W. Blodgett stated, “We are pleased that our investments and the reengineering of our sales efforts are paying off with increased organic revenue growth and major contract awards during the third quarter. We continue to see solid market acceptance of our LED, SOF and new Lasiris™ laser products, and order bookings have regained the momentum achieved earlier in the year. We’re making a strong push into the biomedical and medical equipment markets through each of our business lines, with a particularly large market opportunity for SOF in the medical equipment space. We had a breakout quarter for our Specialty Optical Fiber business and we have expanded our customer base through important vertical channels and key customer relationships. Our recent acquisition of Spectrode, LLC will enhance our strategic initiatives in both our specialty optical fiber and laser business units.
“While quarterly Photonic Products revenues increased 22% over the second quarter of 2007, margins from this division were weaker than anticipated,” Blodgett continued. “We have initiated a lean manufacturing initiative and are looking for additional operational efficiencies that will improve performance in this division. However, fourth quarter improvement will not be enough to offset our year-to-date EBITDA losses from Photonic Products and the falling U.S. dollar. We expect total revenues for 2007 to be approximately $30 million and full year 2007 gross margin to be 33% to 34%.”
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