ProPhotonix PLC (LON:PPIX) shares plunged on Friday after the designer and manufacturer of LED lights said its underlying first-half earnings and margin had declined.
The AIM-listed company said in a trading update that its underlying earnings (EBITDA) would drop to around $0.2mln from $0.7mln in the first six months of 2018 due to a competitive market environment, revenue mix and higher component costs. The group said its gross profit margin fell to around 39% during the period, compared to 44% a year ago.
Very optimistic about 2019 and beyond
The company said first-half revenue was expected to come in at around $8.8mln, an increase of 4%, but below management expectations.
"Whilst revenue recognised has been slower than expected in this first half of 2018, our opportunity pipeline for laser and LED OEM products and UV LED product sales is stronger than at any time,” ProPhotonix’s CEO Tim Losik said in a statement, adding that he was very optimistic about 2019 and beyond.
Shares in ProPhotonix were 32.7% down at 7.40p in early morning trade.