Color Kinetics sales grow as SC Johnson uses LED technology

Aug. 7, 2006
Color Kinetics has once again announced a record revenue figure for its latest quarter, while also announcing that SC Johnson has used LED lighting technology in one of its consumer products.
LED lighting manufacturer Color Kinetics has reported revenues of $15.5 million for the second quarter of 2006, representing an increase of 21% over the figure of $12.9 million for the same quarter last year. Sequentially, revenues increased by 5% from $14.7 million in the first quarter of this year.

Income included record licensing revenues of $705,000, accompanied by new agreements signed with Martin Professional, Dialight, and iLight Technologies. A total of five new patents were issued to the company during the quarter.

Net income for the second quarter was $1.0 million or $0.05 per fully diluted share. After subtracting non-cash charges of $613,000 associated with stock-based compensation expenses, the GAAP net income was $425,000 or $0.02 per fully diluted share, compared with $1.0 million or $0.05 per fully diluted share for the second quarter of 2005.

"Our strong second quarter performance reflects continuing worldwide demand for versatile, efficient LED-based alternatives to conventional lighting in many markets – whether for dynamic architectural lighting, visual merchandising, or international concert tours,” said Bill Sims, president and CEO of Color Kinetics. "We have also shown that opportunities exist well beyond the core lighting market, as evidenced by our growing licensing program."

For the third quarter of 2006, Color Kinetics is targeting revenues within the range of $16.3 million to $17.3 million, with net income of $0.06 to $0.08 per fully diluted share prior to any stock-based compensation expense, or between $0.03 and $0.05 per fully diluted share when these expenses are taken into account.

SC Johnson uses LEDs for Glade Plugins

Color Kinetics' LED technology has been used by consumer goods giant SC Johnson in the company’s Glade® PlugIns® Scented Oil Light Show. Color Kinetics will receive royalties based on net sales of these "home fragrancing" units.

The Glade® PlugIns® Scented Oil Light Show is a device that combines fragrance with a light show to provide a "multi-sensory experience". The product leverages intelligent LED lighting technology that is covered by Color Kinetics’ intellectual property, and that was licensed to SC Johnson for certain products via an exclusive licensing agreement dating back to 2002.

SC Johnson is a $7 billion manufacturer of consumer household products that are distributed through traditional mass market channels, including Wal-Mart, K-Mart, Target, grocery stores and drug stores.

Bill Sims said "We believe this relationship reflects not only the value of our intellectual property, but also the increasingly prevalent use of LED sources across diverse markets – from commercial lighting and entertainment to dynamic household products."

"Their physical nature and capability for digital intelligence allow LEDs to infiltrate a whole new realm of products and applications – creating opportunities for manufacturers to enhance their product lines or enter new markets,” said Sims. “Color Kinetics intends to drive such cross-market adoption by making our well-established patent portfolio accessible to third parties like SC Johnson who recognize its value. We believe that our accelerating momentum in licensing will be bolstered by this exciting relationship."