OCTOBER 22----StockerYale Inc. (Salem, NH; www.stockeryale.com), an independent supplier of photonics-based products, has announced financial results for the third quarter of fiscal 2002. Net revenue of $3.5 million for the third quarter of 2002 was level with the second quarter of 2002. A significant gain in LED shipments from our Ireland subsidiary and continued improvement in our fiberoptic-illumination product line offset a decline in phase-mask revenue. Specialty optical-fiber (SOF) sales doubled, albeit from a modest base, as newly developed SOF products began to achieve traction in the OEM evaluation cycle.
The operating loss in the third quarter declined to $2.6 million, representing a $1.1 million or 30% improvement over the second quarter of 2002. An improved gross margin, reduced joint-venture research-and-development expenses, and the flow-through benefit of expense savings related to the cost-reduction program implemented in the second quarter all contributed to the improved performance. Sales, general and administrative, and R&D costs declined 26% quarter-to-quarter.
Net revenues in the third quarter of 2002 declined 5% or $0.2 million compared to the third quarter of 2001, as a sharp decline in phase-mask sales offset a 70% growth in laser and LED revenue. The third quarter 2002 operating loss declined $1.3 million to $2.6 million compared to the third quarter of 2001, as expense savings of $1.5 million more than offset a modest decline in gross margins.
Frank O'Brien, StockerYale's executive vice president and chief financial officer, stated, "Stable revenues, increased margins, and significantly reduced operating costs provided the basis for the current and on-going improvement in financial performance."
