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16 May 2008


QPC’s product revenue and gross margin more than double year-on-year

For first-quarter 2008, QPC Lasers Inc of Sylmar, CA, USA has reported revenue of $1.6m, up 49% on $1.1m a year ago (the 10th sequential quarter of year-on-year growth in what is historically the firm’s softest quarter). This included product revenue of $1.4m, up 114% on a year ago due to expanded product offerings including Generation III products, the firm’s recent entry into the consumer electronics market, and continued strength in the medical market.

This is evidence that QPC’s business opportunities in all four of its target markets (aerospace/defense, consumer electronics, medical and industrial) are stronger than ever and growing, says co-founder and chief financial officer George Lintz.

“We were particularly encouraged by our product revenue growth, new Gen III orders [worth $1.3m] for our medical lasers, and by tremendous new interest in our visible laser technology by consumer electronics manufacturers from around the world,” says chairman and CEO Dr Jeffrey Ungar. During the quarter, QPC also shipped a high-power laser to a US Department of Defense customer for airborne directed energy weapon applications, and a 300W miniaturized Ultra BrightLock Laser to a US government prime contractor.

“To better capitalize on our high-growth target markets, we strengthened our global sales and marketing teams, adding key members in Europe, Asia and the US to help us to expand our international distribution channels and meet growing customer demands,” Ungar says. QPC now has over 100 customers in 20 countries. “We are committed to increasing our worldwide customer base, our presence in our vertical markets and our revenues,” adds Lintz.

Operating loss has risen from $2m a year ago to $3.3m, due to increased R&D spending for Generation III and consumer electronics developments. However, gross margin has more than doubled from 23% a year ago to 48%, due mainly to product revenue growth (specifically the higher-margin Generation III products) resulting in improved efficiencies as a result of allocating fixed costs over a higher number of units sold.

“We are very encouraged by the increasing interest in our Generation III lasers and we are committed to continued advancements of this product line,” says Lintz. “We remain focused on our long-term goal of overall top-line growth and are currently targeting cash flow positive in 2009,” he concludes.

See related item:

QPC’s revenues grow 158% in 2007

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