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18 March 2008


QPC halves losses as revenues grow 158% in 2007

QPC Lasers Inc of Los Angeles suburb Sylmar, CA, USA, a vertically integrated manufacturer of high-power lasers for the consumer electronics, industrial, defense and medical markets, has confirmed that Q4/2007 revenue was $2.85m, up 32% on Q3’s $2.15m and up 119% on $1.3m a year ago due to increases in both government and product revenue. This included $1m from a new market sector (displays for consumer electronics, following QPC’s demonstration of its visible green wavelength laser).

Full-year 2007 revenue was $7.9m, at the upper end of October’s guidance of $7-8m (and above August’s previous guidance of $6-7.5m). This was up 158% on 2006’s $3.1m (QPC’s third sequential year of triple-digit revenue growth). Growth was boosted by shipments of initial Generation III products in second-half 2007.

“Production revenue was a significant contributor to our overall revenue growth, increasing 242% over last year,” Dr Jeffrey Ungar, chairman and CEO. “More specifically, we saw notable growth in the medical and consumer electronics markets, a growth trend we expect to see continue into 2008.”

Demand for QPC’s core Gen I and Gen II product families continues to accelerate, particularly for medical laser products. “We have now shipped nearly 3500 varicose vein removal lasers,” Ungar added.

The firm’s Generation III technology offers up to a ten-fold improvement in efficiency, cost, size, weight and ruggedness compared to conventional laser technology, it is claimed. “We believe that QPC’s Generation III technology will have the capacity to revolutionize the existing multi-billion-dollar solid-state and gas laser market,” says Ungar. “Our recent entrance into the consumer electronics market is indicative of the potential impact this new advanced technology may have on our business.”

Operating expenses in Q4/2007 were $3.2m, up from $2.8m a year ago. However, due to one-time non-recurring engineering development revenues and the growth in sales of Gen II and Gen III products (which have higher unit prices), gross margin was 63% in Q4, up more than usual (from 36% a year ago). So, Q4 net loss has been cut from $2.7m to $1m, contributing to full-year net loss being halved, from 2006’s $18.7m to $9.7m in 2007. Cash and cash equivalents rose from $1.4m to $6.4m during 2007.

As highlights of 2007, QPC says that it: (in December) launched the Ultra-500 high-power laser, offering up to 425W in output power; (in November) announced a $12m laser TV development and production order (with a potential value up to $230m); (in October) won a further $750,000 contract from a US defense customer for fiber-laser engines designed for specialized airborne weapons applications (raising the total order to $1.75m since April); (in July) shipped initial units of its BrightLase Seed Laser to a defense customer; (in September) demonstrated a new green laser for multiple display applications; (in February) shipped laser engines at eye-safe wavelengths to US defense contractors (demonstrating a critical technology milestone for a US Army contract); and (in January) announced a partnership for joint production work with defense contractor Northrop Grumman. QPC also recruited a VP of manufacturing to prepare for its ramp-up of production.

“We have added consumer electronics to our target markets, which represents a multi-billion dollar and growing market, ramped our sales and marketing efforts around the world and rolled out a number of higher-powered additions to our product line,” comments co-founder and chief financial officer George Lintz. “I anticipate these achievements should contribute to continued strong revenue growth in 2008 and beyond,” Lintz adds.

See related items:

QPC ships initial units for laser TV contract

QPC’s revenues grow 158% in 2007

Search: QPC High-power lasers Laser TV Lasers for defense applications