Advanced Imaging


Industry News

Updated: July 8th, 2008 05:26 PM CDT

PPGI Reports Record Revenues and New Orders, Profitable Third Quarter

PR Newswire
via NewsEdge Corporation

Cash flow from operations in the third quarter was positive at $175,000 vs. a negative $(17,000) in the third quarter of 2004.

Net income was $308,000 for the third quarter and a loss of $(349,000) for the first nine months of 2004, as compared with losses of $(95,000) and $(660,000) for the same periods in 2004.

Net income per share was a profit of $0.04 for the 2004 third quarter, as compared with a profit of $0.01 per share in the third quarter of 2004. Net income was a loss of $0.07 per share for the first nine months of 2005, compared with a loss of $0.14 per share for the first nine months of 2004. EPS includes an adjustment to net income of $134,000 in 2005 and $165,000 in 2004 for dividends paid in common stock to holders of Company preferred stock in each year.

Dan Lehrfeld, President and CEO of PPGI commented, "Continued strength in optical component shipments and new orders at all three of our business units brought year-to-date revenues and bookings to record levels once again. I continue to expect that the results for the full year will do likewise. Gross profit margin (GPM) continued its steady recovery from our weak first quarter on strong results from our legacy business units, and from our new MRC Optics subsidiary where revenues in the third quarter rose as expected to a new record for that business. Cash flow from operations was positive again in the third quarter, reducing total cash deployment into operations through the first nine months to $647,000. Net income for the quarter was positive, reducing our year-to-date loss per share to $0.07. We do not expect to be profitable for the year as a whole in 2005, but I do expect our gross profit margin percentage to continue to rise and the loss for the year to be well below that sustained in 2004.

Mr. Lehrfeld continued, "While our operations teams are busy executing on their record backlogs during the current quarter, our leadership team is now focused on our business plan for 2006. I expect organic growth in sales in 2006 will enable us to achieve a new record in revenues, and we are targeting a profitable year. In 2005 we deferred capital expenditures in order to prioritize cash deployment into the working capital needs of our operations. We now find ourselves facing strong organic growth opportunities in 2006, with related capital expenditure needs, while our available cash resources are currently limited. Accordingly, in the near-term we are focused on increasing both our available cash and our access to cash. We expect to prioritize cash deployment in the near term into acquisition of additional high productivity capital assets, which will enable us to capture and perform on these organic growth opportunities, rather than into our next business unit acquisition.

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