ProPhotonix illuminated by five year supply agreement

LED illuminations systems and laser diode module designer and manufacturer ProPhotonix Ltd (LON: PPIX) announced that it had won a five year supply agreement for custom LED illumantion devices, from a ‘Fortune 50 conglomerate’.

The agreement will run for five years unless terminated in accordance with provisions laid out in the Agreement. ProPhotonix anticipates $1 million per annum in revenue, though it noted the Agreement does not require the customer to make any purchases.

The Company said the ‘custom LED illumination devices’ described in the Agreement feature a ‘unique design’, which incorporate, “multiwavelength configurations and automated software to control spectral balance and the automated configuration of hardware deployment”.

ProPhotonix comments

Tim Losik, President and CEO of the Company, commented on the Supply Agreement,

“The Agreement is the culmination of nearly four years of work with our customer, ultimately delivering innovative solutions and capability that will provide them with a superior market solution. These solutions do more than just provide light – they communicate with the control features of the entire system through our custom software and design features. Every engineering discipline at ProPhotonix including optics, electronics, mechanics, materials, software and manufacturing, participated from concept to commercialization. With over 15 years’ experience in custom LED and laser module design, ProPhotonix delivers solutions across a wide range of industries including the dental, medical and pharmaceutical industries.”

Investor notes

The Company’s shares are down 2.29% or 0.040p to 1.71p per share 10/10/19 16:30 BST. The Group’s p/e ratio and dividend yield are unavailable, their market cap is £1.82 million.

Elsewhere in the tech sector, there were updates from; Universe Group plc (LON: UNG), Microsaic Systems PLC (LON: MSYS), Petards Group plc (LON: PEG), SCISYS Group PLC (LON: SSY), Pebble Beach Systems Group PLC (LON: PEB), ULS Technology PLC (LON: ULS) and Midwich Group PLC (LON: MIDW).

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.