NORTHVALE, N.J. -- Photonic Products Group, Inc. (OTC Bulletin Board: PHPG) has released its consolidated financial results for the year ended December 31, 2010.
The Company ended the year with fourth quarter sales of $3.6 million, an increase of 22% from $2.95 million in the corresponding quarter of 2009. Sales for the year were $11.05 million, unchanged from 2009. Bookings for 2010 were $12.3 million compared to $9.5 million, or 29% higher than 2009. The company booked $3.4 million in new orders in the fourth quarter of 2010, up from $3.1 million in the in the fourth quarter of 2009. Year-end backlog was $5.4 million versus $4.4 million at the end of 2009, or a 23% improvement.
Net income, applicable to common shareholders was $471,000 for the fourth quarter of 2010, versus a net loss of ($26,000), for the fourth quarter 2009. Fourth quarter earnings per share were $0.04 basic and diluted versus $0.00 in 2009.
For the year ended December 31, 2010, the Company's net loss was ($734,000). In 2009 the Company reported a net loss of ($2.8) million which included a non-cash goodwill impairment charge of $1.6 million. Excluding the impairment charge last year, net loss was ($1.2) million. For 2010, basic and diluted net loss per share was ($0.06) versus a net loss of ($0.25) per share in 2009.
As a result of stronger fourth quarter sales, gross profit increased by 63% to $1.22 million or 33.9% of sales, up from $747,000 or 25.3%, of sales in the fourth quarter of 2009. For 2010, gross profit improved to $2.5 million or 22.7% of sales versus $2.2 million or 19.5% of sales, in 2009.
EBITDA(1) for 2010 was $514,000 compared to EBITDA of ($1.5) million in 2009. Excluding the $1.6 million goodwill impairment charge, which the Company recorded in the third quarter of 2009, adjusted EBITDA(2) for 2009 was $10,000.
During the year, management maintained tight control over discretionary expenses, selectively invested in capital expenditures and focused on cash conservation. Net cash flow from operating activities in 2010 was $576,000, down from $815,000 in 2009. Cash flow in 2010 was negatively impacted by fourth quarter increases in accounts receivable balances, reflecting higher sales in the period, offset by increases in accounts payable and customer advance balances at the end of 2010. Although the Company incurred losses in 2010, PPGI ended the year with a stronger cash position, of $4.4 million, up $296,000, versus $4.1 million, at the end of 2009.
Joe Rutherford, President and CEO of PPGI stated, "Although we have continued to deal with the lingering effects of a depressed economy in the markets we serve, which has negatively affected our performance for the past two years, our 2010 results are encouraging. Our 2010 fourth quarter results were particularly positive as sales were the highest since the fourth quarter of 2008. In addition, bookings of $3.4 million in our fourth quarter, followed strong third quarter bookings of $4.6 million. This represents the two highest bookings quarters since the first quarter of 2008. The optimism I have previously expressed has been borne out by our 2010 results. I feel confident that our focus on internal process improvement, adding engineering resources, new product development, and increased customer focus domestically and internationally, as well as selective and strategic investment in capital equipment will position us for success as our markets continue to rebound and demand for our products grows."