Photon Control Reports Fourth Quarter and Annual 2020 Financial Results With Record Annual Revenue and Net Income - Seite 2

Gross profit for Q420 increased to $8.1 million (Q419: $4.7m) and annually to $38.7 million (2019: $17.6m). Q4 2020 gross margin of 55% was in line with our forecast and target model, and full year gross profit was a record $38.7 million or 60%. The increase in gross profit for the quarter and the full year compared to the same periods in 2019 was primarily a result of increased sales volume, causing fixed costs as a percentage of total cost to decrease. Additionally, an increased focus on supply chain management enabled the Company to realize cost savings on its variable costs of production.

Operating expenses for Q420 increased to $5.0 million (Q419: $2.6m) and annually to $17.5 million (2019: $12.8m). The increase was a result of incentive compensation granted in respect of strong results and the Company’s increased investment in research and development and sales and marketing efforts. These investments are a critical part of the Company’s strategy that focuses on new product development and building capacity to fully service customers and addresses market opportunities to grow the business.

Net income for Q420 was $1.2 million or $0.02 per share (Q419: $0.7m or $0.01) and annual net income was $14.0 million or $0.14 per share (2019: $2.4m or $0.02). Net income was adversely impacted by the weakening US dollar, which accelerated late in the year.

Adjusted EBITDA for Q420 was $3.7 million or 25% of revenue (Q419: $2.1m or 24%) and annual adjusted EBITDA was $22.8 million or 35% of revenue (2019: $7.2m or 22%). The decrease for the quarter as compared to the full year period, was primarily due to additional investments in research and development, and the introduction of a long-term incentive compensation program to encourage retention of, and to reward, our key management, as well as the impact of the aforementioned weakening US dollar.

At December 31, 2020, cash and cash equivalents were $48.4 million, an increase of $15.0 million from $33.4 million as at December 31, 2019. The increase was primarily attributable to the Company’s strong financial performance in the year.

Order backlog, defined as the unfilled value of sales orders received or scheduled for fulfillment, was $30.3 million at December 31, 2020, compared to $27.0 million at September 30, 2020. The increase in order backlog reflects continued strength in the WFE market.

Business Outlook

Nigel Hunton, CEO, remarked “The business environment for the semiconductor capital equipment market in 2021 continues to strengthen from the record levels achieved in 2020, with continued growth expected in every major semiconductor device market for our products, including the advanced foundry and logic markets, as well as both the DRAM and NAND memory markets. We expect Q1 2021 revenues to be in the range of $16 to $18 million.