SALEM, NH, August 6, 2002 -- StockerYale, Inc., an independent supplier of photonics-based products, announced financial results for the second quarter of fiscal 2002. Net revenue for the second quarter of 2002 was $3.5 million, which represents an increase of $.6 million or 21%, over the first quarter of 2002. A significant jump in the Company's laser sales coupled with modest growth in its optical business segment were the key contributing factors to a solid quarterly revenue performance.
The operating loss in the second quarter declined to $3.8 million representing a $.7 million or 15% improvement over the first quarter of 2002. An improved gross margin and a 10% reduction in operating expenses were the principal drivers behind a reduced operating loss. Moreover, second quarter results do not include the favorable impact of future expense savings related to a $5 million cost reduction program initiated during the quarter. The financial benefits of this program will be reflected in the Company's operating performance beginning in the third quarter.
Operating cash flow, excluding capital expenditures and external financing, improved by $1.5 million from the first to the second quarter of 2002.
The net revenue and operating loss of $3.5 and $3.8 million respectively for the second quarter of 2002 was level with the comparable quarter in fiscal 2001. In comparing revenue performance, a different product mix consisting of increased laser and LED sales offset lower phase masks shipments. The marginal increase in the operating loss was the result of higher manufacturing overhead and the associated gross margin erosion, which was largely mitigated by reduced operating expenses.
Operating cash flow in the second quarter of 2002, excluding capital expenditures and external financing, improved by $.9 million over the second quarter of 2001.
Commenting on the performance in the second quarter, Mark W. Blodgett, StockerYale's chairman and chief executive officer stated, "We are pleased with the progress we are making on the financial front as operating expenses have decreased while revenues were up in comparison to the first quarter of this year. Clearly, we are benefiting from our diverse, photonics-based product strategy as we have seen sequential revenue growth and a significant increase in orders from new products."
Blodgett continued, "On the product front, we have been very successful selling our lasers into the military, inspection and medical markets where we continue to identify and close on new business opportunities. Our new line of micro-focus lasers has clearly set us apart from many of our competitors. In addition, the Company has been successful in developing and launching new, state-of-the-art, specialized illumination products in the fiber optic, fluorescent, and light-emitting diode (LED) technologies into its worldwide distributor channel along with penetrating niche markets with custom designed products."
"With regards to our acquisition of CIENA's SOF group, the integration of this operation with StockerYale's SOF initiatives has allowed us to accelerate and broaden our specialty optical fiber development efforts and product offerings. In a relatively short period of time following this integration, several new fibers have been introduced to the market. We anticipate improved sales performance in this particular product line as our portfolio of products expands moving into the second half of 2002," Blodgett added.
StockerYale, Inc., headquartered in Salem, NH, is an independent designer and manufacturer of phase masks, specialty optical fiber, and advanced optical sub-components as well as structured light lasers, specialized fiber optic, fluorescent, and LED technologies for use in a wide range of markets and industries including the telecommunications, military, utilities, machine vision, industrial inspection, and medical markets.
StockerYale serves a widely varied, international customer base from its corporate offices in Salem and reinvests a significant percentage of its revenues in R&D to meet the future requirements of its customers.
For more information, visit www.stockeryale.com.
Laser Focus World