Photon Control Reports Third Quarter 2020 Financial Results; Record Year-to-Date Revenue and Net Income

VANCOUVER, British Columbia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Photon Control Inc. (“Photon Control” or the “Company”) (TSX: PHO), a leading manufacturer of fiber optic measurement solutions to the semiconductor industry, is pleased to announce its financial results for the three and nine months ended September 30, 2020.

Highlights for the third quarter 2020 were as follows:

• Revenue of $16.3 million (Q319: $8.7m) and record year-to-date revenue of $49.7 million (2019: $23.9m);
• EBITDA¹ of $6.2 million (Q319: $2.4m) or 38% (Q319: 28%) of revenue and record year-to-date EBITDA of $19.1 million (2019: $5.1m);
• Net income of $3.6 million (Q319: $1.5m) and record year-to-date net income of $12.9 million (2019: $1.7m);
• Basic earnings per share of $0.03 (Q319: $0.01) and year-to-date basic earnings per share of $0.12 (2019: $0.02);
• Gross margins of 62% (Q319: 55%) and year-to-date gross margin of 61% (2019: 54%);
• Cash and cash equivalents of $46.6 million at September 30, 2020, increased $13.2 million from December 2019.

“We have delivered a very strong performance through the first nine months of the year. The global pandemic has accelerated the digital transformation of the economy and Photon Control continued to benefit from the demand for high-performance computing and 5G infrastructure that positively impacts the semiconductor industry. We have exceeded our best-ever year in terms of both income and revenue, and we are only three-quarters of the way through the year,” said Nigel Hunton, Chief Executive Officer.

The Company’s revenues are chiefly derived from the semiconductor capital equipment sector and capital expenditures in Wafer Fabrication Equipment (“WFE”) has continued at record levels in 2020.

Third Quarter and Year-to-Date 2020 Financial Results

Total revenue for Q320 increased to $16.3 million (Q319: $8.7m) and for the year-to-date period, revenue increased to $49.7 million (2019: $23.9m). The increase in revenue was a result of an improved wafer fabrication equipment spending environment.

Gross profit for Q320 increased to $10.2 million (Q319: $4.8m), or 62% (Q319: 55%) of revenue (referred to as gross margin). For the year-to-date period, gross profit increased to $30.5 million (2019: $12.9m), or 61% (2019: 54%) of revenue. The increase in gross margin was a result of amortizing fixed costs of production over higher sales volumes and the realization of cost savings in variable cost of production from supply chain initiatives.