NOVEMBER 3--StockerYale (Salem, NH, USA; www.stockeryale.com), an independent provider of photonics-based products, announced its financial results for the third quarter, ended September 30, 2006. All 2005 and 2006 numbers have been adjusted for discontinued operations and do not include financial results from the acquisition of Photonic Products Ltd., which was completed on October 31, 2006. Revenues from continuing operations for the third quarter of 2006 were $4.5 million, representing a 10% comparable increase over the third quarter of 2005.
Specialty optical fiber continues to drive revenue growth. The optical components product line, mainly optical fiber, increased 17% over the quarter ended September 30, 2005. Comparable laser and LED revenues increased 9% and 13%, respectively. Gross profit increased 21% to $1.6 million in the third quarter versus $1.3 million in the comparable quarter of 2005. Gross margin was 34%. Gross profit was negatively impacted by higher material cost, as well as a decline in the value of the U.S. dollar versus the Canadian dollar.
The operating loss for the third quarter was $0.7 million versus $1.1 million in 2005, excluding stock-based compensation expense of $0.1 million, a 40% improvement. Research-and-development expenses of $0.6 million were 6% lower than the third quarter of 2005. Selling expenses increased 4% to $0.6 million. General and administrative expense declined 4% due to a reduction in legal fees and lower compensation, offset partially by the expensing of stock-based compensation resulting from the company's adoption of FAS123R.
"Our year-over-year laser revenue showed moderate growth, tracking the machine-vision market," said Marianne Molleur, StockerYale chief financial officer. "We were able to demonstrate effective management of expenses and operations, resulting in a continued reduction in our operating and EBITDA loss this quarter. In addition, higher margins and growth in optical component revenues have contributed to improved overall financial performance this year. We expect that the acquisition of Photonic Products will increase the company's revenue growth, margins, and profitability," added Molleur.
For more, see the company's Web site.
