StockerYale reports reduction in operating loss

JULY 31--StockerYale Inc. (Salem, NH; www.stockeryale.com), a supplier of photonics-based products, posted a net revenue increase of 2% from $3.5 million in the second quarter of 2002 to $3.6 million. The company benefited from a 14% increase in illumination sales, which was partially offset by lost sales associated with the divestiture of the company's printer and recorder product line in November 2002.

Excluding the printer and recorder product line, sales increased 10% for the second quarter versus the comparable quarter in 2002. The operating loss declined 44% from $3.8 million to $2.1 million over the same period as the company benefited from higher gross margins and a reduced cost structure. Net cash used in operations declined to $725,000 in the second quarter versus $3.5 million in second quarter 2002 and $2.4 million last quarter.

"The company continued to make significant progress during the quarter, as reflected in our reduced cash loss, which was consistent with our expectations," said Mark W. Blodgett. "While challenges remain, we continued to engage and create value for customers, particularly with our new laser, LED, and specialty optical-fiber products, focusing on growth opportunities and leveraging our technology. Given our streamlined cost structure, we expect the company to exhibit continued improvement in its financial performance over the ensuing quarters," added Blodgett.