Super Vision and TIR Systems report financial results

Aug. 16, 2005
Two manufacturers of solid-state lighting equipment, Vancouver's TIR Systems and Florida's Super Vision, have reported revenue in the $3.2-3.4 million range.
Super Vision

Super Vision International, a manufacturer of LED lighting systems and fiber-optic lighting products for applications in the commercial, architectural, signage, swimming pool and retail lighting markets, announced revenues of $3.2 million for the second quarter ended June 30, 2005.

Revenues were up 16% compared with $2.8 million in the second quarter of 2004. Total revenues for the six months ended June 30, 2005 were up 4% at $6.1 million compared with $5.9 million in the same period last year.

Revenues for the Pool & Spa Division were up 28% driven by a strong demand for Super Vision’s LED pool and spa lighting products.

“The second quarter came in on plan and we are well positioned for the 2nd half of the year. We began shipping orders for our new SaVi Architectural LED products in the 2nd Quarter and the quotation activity and demand is growing according to our internal forecast.” stated Mike Bauer, Vice President of Sales & Marketing.

Gross margin for the second quarter of 2004 was 46%, compared to 38% in the same quarter a year ago. R&D expenses for the quarter increased to $151,000. Brett Kingstone, the Company’s President and CEO commented, "I believe that the Company’s long-term success will depend, in large measure, on its new product design and development efforts and thus we expect to see further increases in R&D expenses in the future as a result of anticipated new product development and other related R&D activities."

TIR Systems

TIR Systems Ltd. has reported a net loss of $3.0 million, or ($0.13) per share, for its third fiscal quarter ended June 30, 2005. The loss has increased from $1.8 million or ($0.09) per share in the same period last year.

Revenue for the quarter was $3.4 million, compared to $6.3 million in Q3 2004. The revenue decline was due primarily to a decrease in revenues from TIR’s largest customer, BP, as its successful North American corporate re-imaging program is now complete.

On a fiscal year-to-date basis in 2005, TIR’s net loss was $8.9 million, versus net income of $461,700 for the same period in 2004.

Year-to-date revenue for 2005 was $12.3 million compared to $24.4 million for the same period in 2004. The company expects total fiscal 2005sales to be in the $16-19 million range.

Gross margins declined from 45% in Q3 2004 to 17% in Q3 2005; this was due to lower revenues, resulting in lower utilization of the production facility, a shift in product mix, and inventory adjustments primarily due to obsolescence.

TIR's president & CEO Leonard Hordyk said that the company's current business performance is insufficient, but expects great things from TIR's LEXEL technology. “Our negotiations with potential partners are promising and ongoing, and while there can be no guarantee of success, the industry response to the LEXEL increases our conviction that this breakthrough could truly transform the lighting industry,” said Hordyk.

He added, “We are on track with our plan to commercialize the LEXEL. To date and to our knowledge, no competitors have introduced a technology that rivals the LEXEL‘s potential to bring Solid State Lighting to the general illumination market.”

TIR Systems also announced the receipt of four orders totaling $1.5 million for its Destiny Series of architectural luminaires and its ColorTrace delineation product, both Solid State Lighting (SSL) products. This revenue is expected to be recognized primarily in the fourth quarter of fiscal 2005. The projects include entertainment complexes, retail environments and commercial buildings in Asia, Europe and Latin America.

TIR has also entered into a binding term sheet to sell, on a private placement basis, $10 million aggregate principal amount of secured convertible debentures. The company intends to use the net proceeds from the sale of the debentures for working capital and general corporate purposes.