Super Vision International, Inc.
(NASDAQ Small Cap: SUPVA, Class A Common), the designer and manufacturer of LED and fiber-optic lighting products, signs, and displays for applications in the signage, swimming pool, architectural, and retail industries, has announced financial results for the quarter ended September 30, 2003.
Net income for the quarter was $206,400 or $0.08 per share, compared to a net loss of $300,000 or ($0.12) per share in the third quarter of 2002. The company was profitable for the second consecutive quarter this year despite a slight decline in revenues from $3.00 million in the third quarter of 2002 to $2.93 million in the same quarter of 2003. Net loss for the nine months ended September 30, 2003 was $120,000 or ($0.05) per share compared to a net loss of $696,300 or ($0.27) per share in the same period last year.
Gross margin for the third quarter of 2003 rose to 49% from 39% in the same quarter a year ago. Year-to-date gross margin improved to 43% from 39% for the nine months ended September 30, 2002. Gross margin for the third quarter improved by 2% to 49% from 47% in the second quarter of this year.
Selling, general, and administrative (SG&A) expenses for the quarter were $1.1 million compared to $1.3 million in the third quarter of 2002, or a decrease of approximately 17%. For the nine months ended September 30, 2003, SG&A expenses decreased to $3.1 million from $3.8 million for the same period in 2002, or a 16% decrease. Overall improvement in SG&A was mainly due to reductions in professional fees and payroll expenses as a result of cost-cutting initiatives implemented by the company in the latter part of the first quarter of this year.
Research and development (R&D) expenses for the quarter decreased 29% to $88,400 from $125,300 in the third quarter of 2002. For the nine months ended September 30, 2003, R&D expenses decreased 15% from $357,200 in 2002 to $304,700 in 2003. The reduction in R&D was mainly due to more focused product development initiatives in 2003 as compared to 2002.
Dan Regalado, chief financial and operating officer of Super Vision International commented, “Despite the lower R&D expenses this year, more new products were developed and launched in the market this year as compared to last year. We expect these new products to capture new market opportunities for both our fiber-optic and LED lighting systems and set new standards in the industry.”
Brett Kingstone, president and CEO of Super Vision International stated, “We are proud of our sustained profitability and expect continuing improvement over time. Our focus now will be on increasing revenue across the board through more focused sales efforts, new product introductions and new market opportunities both domestic and international.”
The company had cash and investments of $2.1 million at September 30, 2003 and a current ratio of 4.8 to 1 compared to cash and investments of $1.6 million and a current ratio of 4.6 to 1 at June 30, 2003.