16 April 1998: US-based Photran Corporation reported net sales of US$ 4.4 million, an operating loss of US$ 4.5 million and a net loss of US$ 5.3 million for the year ended 31 December 1997. The 1997 …
16 April 1998: US-based Photran Corporation reported net sales of US$ 4.4 million, an operating loss of US$ 4.5 million and a net loss of US$ 5.3 million for the year ended 31 December 1997. The 1997 results compare to revenues of US$ 2.9 million, an operating loss of US$ 4.6 million, and a net loss of US$ 4.8 million for 1996. Net loss per share was US$ 1.03 (basic and diluted) for 1997, compared with a net loss per share of US$ 1.15 (basic and diluted) for 1996. “While we are pleased with our revenue increase, the overall 1997 results are completely unacceptable to Photran“s management and Board. These results in no way reflect either the strengths of our proprietary process technology or the strong and growing market for our products,” said Photran CEO Paul T. Fink. “We have, however, resolved some significant issues during 1997 and are taking steps we hope will ensure the company“s profitability in 1998,” he added. Results for 1997 include US$ 1.8 million in non-recurring charges, comprised of a US$ 900,000 accrual of a contractual liability on a defaulted lease, US$ 700,000 related to the settlement with the company“s former Chinese joint venture partner, Shenzhen WABO Group Company Ltd., and US$ 200,000 in expenses related to equipment and engineering projects cancelled by the company. In the fourth quarter of 1997 Photran said it stopped making payments on a US$ 4.5 million financing lease related to its P-3 production line. The company had planned to bring the lease current using a portion of the proceeds from its US$ 3.5 million private debt placement in February 1998, however the lender, NBD Equipment Finance Inc., has reportedly asked Photran to find alternative financing. Management is negotiating with several potential lenders, but has recorded the additional contractual liabilities of US$ 900,000 due as a result of the default. Management is optimistic that such financing will be available at terms acceptable to the company. For the fourth quarter ended 31 December 1997, Photran reported net revenue of US$ 1.8 million, gross profit of US$ 284,000, an operating loss of US$ 941,000 and net loss of US$ 1.8 million, or US$ 0.35 per share. This compares to revenues of US$ 655,000, a gross loss of US$ 711,000, an operating loss of US$ 3.8 million and a net loss of US$ 3.8 million, or US$ 0.88 per share for the fourth quarter of 1996.