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Nexxus Lighting posts 43% revenue growth on back of new LED products

Published: 21:13 13 Aug 2010 BST

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North Carolina-based lighting company Nexxus Lighting, Inc. (NASDAQ: NEXS) has released its second quarter 2010 results, reporting revenue growth of 43% to $3.7 million, as compared to the prior year quarter, largely due to its expansion in LED lighting products. Gross profit increased to $873,000 on higher sales volume, compared to $650,000 in the second quarter of 2009.

The company, which recently expanded its portfolio of intellectual property to 23 issued and 37 pending patents relating to the Array brand of LED light bulbs, has been transitioning from a business focused on traditional lighting products to one increasingly focused on LED.

As a result, it saw a decrease in the sales of its legacy commercial products by 31% to $409,000 in the second quarter of 2010.

This was offset, however, by its Array products, for which sales grew to $430,000 in the Q2 2010 versus $197,000 second quarter last year. Still though, Q2 2010 sales of Array LED lamps were roughly flat with the first quarter of 2010 and below target, said president and CEO Mike Bauer.

Revenue from sales of pool and spa lighting products also improved by 105% to approximately $2 million for the period. The growth reflects an increase in market share as the company expanded its pool and spa lighting product offering, including adding Melody Blanco, a white-light-only LED product, Nexxus said.

Overall, revenue from sales of commercial lighting products increased by approximately 7%, from to $1.7 million in the second quarter of 2010. This was primarily due though to the sales growth from Nexxus`new Array LED lamps.

Sales of LED products accounted for 84% Nexxus` revenue in Q2 2010, versus 74% last year.


Nexxus also introduced a new Array PAR 38 LED lamp offering as an 18 watt replacement for 75 to 90 watt halogen lamps.

"We are pleased with the company's overall sales growth in a challenging economy, as reflected in the fourth consecutive quarterly sales increase," said Bauer.

He continued: "We believe [Array product] sales levels reflect the current economic environment as well as the timing of integral LED lamp standards and the resulting delay and timing of utility incentive programs, which are tied to the effective date of these new standards. With the continued development and launch of best in class products, including our new PAR 38, we feel the company is well positioned as these macro-economic elements begin to improve."

Despite uncertainty in some market segments, the long term growth trends of LED lighting remain intact, the company said.

Nexxus plans to continue focusing on expanding its Array business, while attempting to mitigate challenges and reduce costs in its legacy business in the second half of 2010, which could include closing, selling or reducing its operations.

Net loss for the three months ending June 30, 2010 was approximately $1.9 million. The company had cash and cash equivalents of $7.8 million and long term debt of $2.2 million.

Nexxus was founded in 1991 as  Super Vision International and manufactures products for architecture, landscape, signs, pools and spas, stages and spectacular displays all over the world.

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