StockerYale Reports 2010 First Quarter Financial Results


106% Increase in First Quarter Order Bookings

First-Quarter 2010:
• Revenue $3.5 million vs. $2.9 million in first quarter 2009, a 22% increase year over year;
• Revenue up 31% sequentially versus the fourth quarter of 2009;
• Gross margin 34.2% vs. 27.6% in first quarter 2009 and 35.6% in Q4, 2009;
• EBITDA loss $0.4 million vs. $0.7 million loss in first quarter 2009;
• Order bookings $5.1 million, ending backlog $7.2 million;
• Percentage Revenue by Market Sectors: industrial 85%, defense 8% and medical 7%;
• Percentage Revenue by Geography: 57% Europe, 31% North America and 12% Rest of World.

Q1 2010 Business Highlights
• Bookings improved significantly in Q1; up 106% versus Q1 2009 and 22% versus Q4 2009;
• Backlog improved 92% versus Q1 2009 and 21% versus Q4 2009;
• Increased orders from solar, medical, optical character recognition (OCR) and semiconductor industries;
• Launched InViso™, a high performance laser module product line, for the machine vision market at Photonics West in January

Salem, N.H. — May 6, 2010 — StockerYale, Inc. (Pink Sheet OTC: STKR), a leading designer and manufacturer of diode-based laser modules and LED systems for industrial OEMs, medical and defense markets, today announced its financial results for the first quarter ended March 31, 2010. Results are reported from continuing operations and exclude discontinued operations unless otherwise stated.

First Quarter 2010 Financial Results
Total revenue for the first quarter of 2010 of $3.5 million increased 22 percent (up 17%, adjusting for currency) from the first quarter of 2009. The increase in sales was due to a $0.3 million increase in the Photonic Products segment, of which $0.1 million was due to the impact of foreign currency exchange, and a $0.3 million increase in the LED segment, of which $0.1 million was due to the impact of foreign currency exchange.
Gross profit was $1.2 million for the three months ended March 31, 2010, a 52% increase compared to the first quarter of 2009. During the three months ended March 31, 2010, gross margin was 34% compared with 28% in the first quarter of 2009, mainly due to increased volumes and improved productivity on our LED segment.
Operating expenses totaled $1.8 million for the first quarter of 2010, equal to the first quarter of 2009. The 2010 operating expenses include a one-time charge of approximately $0.1 million for the recognition of expenses related to an unoccupied facility in the UK, offset by a favorable impact of $0.1 million in foreign currency exchange rates versus the first quarter of 2009. Non-cash amortization of intangible assets decreased to $99,000 versus $174,000 for the first quarter of 2009. Sales and marketing expenses increased by approximately $64,000, or 15%. Research and development expenses were slightly higher by $15,000 at $153,000. General and administrative expense decreased 8%, or $96,000, due to cost savings, including headcount and salary reductions but which also includes the one-time charge for the unoccupied facility in the UK. EBITDA loss for the quarter was $(362,000) compared to $(690,000) for the first quarter of 2009. Excluding the one-time charge, the EBITDA loss was $(247,000). Net loss including discontinued operations was $1.3 million or $0.03 per share. This compares to net loss of $1.6 million or $0.04 per share for the first quarter of 2009.

“During the first quarter, the Company continued to experience a substantial increase in order bookings across all product lines” stated Mark W. Blodgett, Chairman and CEO. “First quarter orders increased 106% over the prior year and increased 22% sequentially over the fourth quarter of 2009. Backlog was $7.2 million, an increase of 92% over the prior period and 21% sequentially. Based on current backlog and continued improvement in order bookings, management expects 2010 revenues to increase 40 to 50% to approximately $15 million versus 2009 revenue of $10.4 million. Despite the challenging environment in 2009, our two operation units, StockerYale (IRE) Ltd and Photonic Products Ltd, were EBITDA positive. For the first quarter 2010, the combined operating unit EBITDA – excluding the onetime charge – was $290,000 continuing the trend of improved performance from the operations. With higher sales volumes and improved overhead absorption we expect continued improvement in both gross margins and EBITDA performance over the course of the year,” added Blodgett.

“In addition to significantly expanding our machine vision laser module business with the launch of the new InViso™ laser line in January, the Company is laying the groundwork for an escalation of its LED business further into the medical & dental space, as well as development of high performance chip-on-board LED products for the rapidly growing architectural, retail and entertainment lighting markets. In the near future we expect to announce our comprehensive product strategy to address these markets,” concluded Blodgett.

StockerYale, Inc., headquartered in Salem, New Hampshire, is an independent designer and manufacturer of diode-based laser modules and LED systems for industry leading OEMs. In addition, the Company distributes premium diodes for Opnext, Sanyo & Sony. The Company serves a wide range of markets including the machine vision, industrial inspection, defense, sensors, and medical markets. StockerYale has offices and subsidiaries in the U.S., Ireland, and Europe. For more information about StockerYale and their innovative products, visit the Company’s web site at

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including without limitation, those with respect to StockerYale’s goals, plans and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: uncertainty that cash balances may not be sufficient to allow StockerYale to meet all of its business goals; uncertainty that StockerYale’s new products will gain market acceptance; the risk that delays and unanticipated expenses in developing new products could delay the commercial release of those products and affect revenue estimates; the risk that one of our competitors could develop and bring to market a technology that is superior to those products that we are currently developing; and StockerYale’s ability to capitalize on its significant research and development efforts by successfully marketing those products that the Company develops. Forward-looking statements represent management’s current expectations and are inherently uncertain. All Company, brand, and product names are trademarks or registered trademarks of their respective holders. StockerYale undertakes no duty to update any of these forward-looking statements.
Investor Relations Contact:
Mark W. Blodgett
StockerYale, Inc.

Use of Non-GAAP Financial Measures

The Company provides non-GAAP financial measures, such as EBITDA, to complement its consolidated financial statements presented in accordance with GAAP. Non-GAAP financial measures do not have any standardized definition and, therefore, are unlikely to be comparable to similar measures presented by other reporting companies. These non-GAAP financial measures are intended to supplement the user’s overall understanding of the Company’s current financial and operating performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by identifying certain expenses, gains and losses that, when excluded from the GAAP results, may provide additional understanding of the Company’s core operating results or business performance, which management uses to evaluate financial performance for purposes of planning for future periods. However, these non-GAAP financial measures are not intended to supersede or replace the Company’s GAAP results.

The Company uses EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation) as a non-GAAP financial measure in this press release. A reconciliation of EBITDA to net income / (loss) for the first quarter ended 2010 is as follows:

                                                     Three Months Ended
                                                       (In thousands)
                                                         March 31,
                                                     2010      2009
Net Loss                                           $  (1,319) $   (1,607)

 Income from discontinued operations                     59       (26)
 Interest expense (net)                                 522       141
 Depreciation                                           122       136
 Intangible asset amortization                           99       174
 Stock based compensation                               120       200
 Taxes                                                 (64)      (173)
 Amortization debt discount and financing costs          99       465
EBITDA Loss                                        $   (362) $   (690)
 One time charge - Abandoned Lease                      115         -
Adjusted EBITDA (loss)                             $   (247)  $  (690)
                 Consolidated Statements of Operations
             ($ In thousands except share and per share data)

                                                Three Months Ended
                                                     March 31,
                                                 2010         2009
                                            ------------ -------------
Net Sales                                   $     3,482  $      2,855
Cost of Sales                                     2,290         2,068
                                            ------------ -------------
Gross Profit                                      1,192           787
                                            ------------ -------------
Research & Development Expenses                     153           138
Selling, General & Administrative Expenses        1,643         1,675
Amortization of Intangible Assets                    99           174
                                            ------------ -------------
Operating Loss                                     (703)        (1,200)
                                            ------------ -------------
Other Expense, net                                 (328)          (103)
Amortization of Debt Discount & Financing
 Costs                                              (99)          (465)
Interest Expense                                   (194)           (38)
                                            ------------ -------------
Loss before taxes from Continuing
 Operations                                       (1,324)       (1,806)
Tax benefit                                          (64)         (173)
                                            ------------ -------------
Net Loss from Continuing Operations               (1,260)       (1,633)
Income / (loss) from Discontinued Operations         (59)           26
                                            ------------ -------------
Net Loss                                    $     (1,319) $     (1,607)
                                            ============ =============
Loss Per Share
Loss Per Share from Continuing Operations        $(0.03)         $(0.04)
Loss Per Share from Discontinued Operations      $(0.00)        $(0.00) 
                                            ------------ -------------
Net Loss Per Share                               $(0.03)         $(0.04) 
                                            ------------ -------------
Weighted Average Shares Outstanding            44,124,936    40,590,710

                Consolidated Condensed Balance Sheets

                                               March 31,     December 31
ASSETS                                          2010          2009
                                            ------------ -------------
Cash                                        $     2,835  $      4,478
Other Current Assets                              3,713         3,258
Property, Plant & Equipment, Net                  3,693         3,835
Other Assets                                      1,611         1,805
                                            ------------ -------------
Total Assets                                $    11,852  $     13,376
                                            ============ =============

Current Liabilities                         $     6,651  $      7,123
Long Term Debt                                    3,115         3,281
Long Term Lease and Other Liabilities             3,265         3,287
Stockholders Equity (deficit)                    (1,179)        (315)
                                            ------------ -------------
Total Liabilities & Stockholders Equity     $    11,852  $     13,376
                                            ============ =============


StockerYale, Inc.
Mark W. Blodgett, 603-893-8778

Subscribe For Updates

Stay up to date with relevant product updates, updates on events, whitepaper and case study release notifications and company news.