Super Vision reports revenue increase but gross margins fall
Super Vision's gross margins suffered from a shift in product mix away from fiber-optic products towards LEDs products for the pool and spa market.
Revenues were up slightly compared with $2.9 million reported in the same quarter last year. Total revenues for the nine months ended September 30, 2004 were approximately $8.9 million, up 12% compared with the same period last year.
The modest increase in revenue was attributed to the pool and spa market, mainly from OEM sales to major spa manufacturers and an increase in sales in the international market. However, this was offset by a decrease in sales in the architectural and sign markets, now combined under Super Vision's commercial lighting market.
The bad news for Super Vision was that its gross margin for the third quarter of 2004 was 37%, down from 49% in the same quarter a year ago. This primarily resulted from the decline in revenues from the sale of fiber optic products, particularly within the commercial lighting market, which are normally sold at higher gross margins, and the increase in sales of lower gross margin LED products, particularly to recently established pools and spa OEM accounts.
Super Vision's net loss for the quarter ended September 30, 2004 was $62,800 or $0.02 per basic and diluted common share, compared to net income of $206,400 or $0.08 per basic and diluted common share in the third quarter of 2003. The net loss for the nine months ended September 30, 2004 was approximately $153,100, or $0.06 per basic and diluted common share.
Super Vision's President and CEO, Brett Kingstone, commented: "We are excited to report several key initiatives that are expected to contribute to our company's growth and profitability in the immediate future. We have recently launched our SaVi(TM) LED lighting system which we expect to sell to the commercial market through the use of new RGB and high flux white LED technology and state-of-the-art digital control systems.
"We are also now seeing a revenue stream from the licensing of the intellectual property that we had acquired earlier this year," continued Kingstone. "We also have signed several licenses on our LED lighting patents and prior art we acquired early this year and we have several more licensing opportunities under negotiation."