“We made significant progress on several fronts in 2019. From an operational perspective, the concerted effort by our entire workforce focused on production improvements and efficiencies, which led to improved manufacturing yields and production throughput as production volumes increased over 50% during the second half of 2019. Our R&D engineers and our manufacturing team have done an outstanding job and are committed to further identifying and implementing improvements to enhance our manufacturing processes,” said CEO Andrew G. Sculley.
“Our cost reduction efforts which we started in the third quarter and continued into the fourth, resulted in a 21% operating expense reduction on a year-over-year basis,” added Sculley. “The result is that our net loss was $205,000 or essentially break-even on a per share basis in the fourth quarter as compared to a loss of $2.5 million or $0.05 cents per share in the comparable period last year. Although it will take a few more quarters to realize the full benefit of the initiatives being put in place, we are very pleased with the progress we have made to date and our performance in the second half of the year.”
“From a demand perspective, we also see positive trends. For the fourth quarter, total revenue increased to $7.3 million or 35% over the prior year period. Our contract revenue was more than double from a year ago due to multiple contracts including one for the planned F-35 display improvements and a new project for a consumer electronics customer,” he continued. “We had record bookings in the fourth quarter, exceeding $15 million, which led to a 75% increase in our backlog from the third quarter of 2019.”
Fourth Quarter Results
Revenues for the fourth quarter of 2019 were $7.3 million, an increase of $1.9 million from revenues of $5.4 million reported in the prior year period, and a slight decrease of $0.6 million from the third quarter of 2019. Gross margin for the fourth quarter was 36% on gross profit of $2.7 million compared to a gross loss of $0.5 million in the prior year period. Operating loss for the fourth quarter of 2019 was $0.1 million compared to an operating loss of $4.2 million in the prior year period.
Full Year Results
Revenues for 2019 were $26.7 million, up 2% from the $26.2 million in 2018. Product revenues totaled $24.6 million, representing a 5% increase from $23.3 million in 2018, due primarily to customer demand coupled with increase in throughput and manufacturing yields. R&D contract revenues totaled approximately $2.1 million as compared to $2.9 million in 2018. Gross margin for 2019 was 25%, compared to 15% in 2018.
Operating loss for the full year 2019 was $5.6 million versus $11.7 million in 2018. Net loss for the full year 2019 was $4.3 million, or $0.09 per diluted share. This compares to a net loss of $9.5 million or $0.21 per diluted share in 2018.