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Phototron Holdings, Inc. Reports Second Quarter 2011 Financial Results

^{Published on 2011-08-15 14:06:04 - Market Wire}
 

WOODLAND HILLS, Calif.--([ BUSINESS WIRE ])--Phototron Holdings, Inc. (OTCBB: PHOT) (OTCQB: PHOT), the designer, manufacturer and seller of the innovative PHOTOTRON Hydroponic Indoor Grow System, today announced the availability of its second quarter 2011 financial results for the period ending June 30, 2011.

"The second quarter of 2011 represented an exciting and transformative period in Phototrona™s development"

Phototron Holdings reported second quarter 2011 revenue of approximately $71,000, a decrease of $38,000 compared to $108,000 in the second quarter of 2010. The decrease in revenue is the result of management focusing its efforts on expanding Phototrona™s marketing activities, converting to a multi-level marketing model and developing new products. Net loss for the second quarter of 2011 was $782,000 compared to a net loss of approximately $1,000 for the second quarter of 2010. The net loss in Q2 2011 was primarily attributable to significant investments in one-time capital investments.

aThe second quarter of 2011 represented an exciting and transformative period in Phototrona™s development,a said Doug Braun, Phototrona™s CEO. aWe laid the necessary ground work to benefit from our new growth initiatives over the coming months. It is important to note that shipments of the new PHOTOTRON products did not commence until the third quarter as we moved corporate offices and warehouses, hired sales and administrative staff to support our anticipated expansion and set up new advertising, marketing and promotional items. After investing heavily in our restructuring and realignment, Phototron is now ready to capitalize on our strong foundation and effectively monetize our new MLM business model going forward.a

Second Quarter 2011 Highlights

• New management team has positioned Phototron for future growth initiatives through the following capital investments in the second quarter:
  • Extensive R&D, for Phototrona™s patent-pending Pro-Series.
  • Gearing up and retooling manufacturing with new molds and manufacturing processes in support of new designs.
  • Technology to support new direct selling model including inventory warehouse management, accounting, and communications.
  • MLM back office on-line software to support independent affiliates with administrative tools, order processing, and customer management.
  • Warehouse and shipping functionality.
  • Design of packaging and collateral design support.
• Launched GrowLife Inc., the company's direct selling hydroponic gardening subsidiary, and Growlifeinc.com website.
• Launched new patent pending Pro LED Phototron Hydroponic System.
• Touted as alunar greenhouse for your kitchena on The Martha Stewart Show.

Subsequent Events

• Launched new ECO-Brain Home Hydroponic Automated Controller.
• Launched new T5 PHOTOTRON Hydroponic Grow System.
• Appointed investment banking veteran Bruce Raben to Advisory Board.
• Appointed respected business and legal expert Alan Liker to Advisory Board.

Managementa™s recent comprehensive R&D initiatives have positioned PHOTOTRON Systems to be the market leader in the indoor hydroponic gardening market, with new advanced technologies not found in any other personal growing systems. Enhancements to the entire product line and the new PHOTOTRON Pro Series incorporates the latest in fluorescent and LED lighting technologies and a new patent pending ECO-Brain Controller, which constantly monitors temperature, humidity and water levels to maximize growth and crop yield.

To propel awareness of its innovative hydroponic systems to the masses, Phototron is on the cusp of an accelerated growth phase as it adopts a direct selling business model. To achieve its high-growth mission, the company recently launched GrowLife, its wholly owned direct selling gardening subsidiary, through which the PHOTOTRON line of products are sold. Phototron believes a sales force of independent MLM sales affiliates can quickly and efficiently expand Phototrona™s sales channels through their personal relationships, all with minimal cost and on a highly scalable basis for Phototron.

Phototrona™s new MLM model is expected to serve billion dollar markets where consumers can realize significant financial savings, convenience and quality with the PHOTOTRONa™s range of products across these market segments. The new direct sales model took most of the second quarter to implement, therefore results should become more noticeable in Phototrona™s third quarter results.

Craig Ellins, Phototrona™s Chairman, concluded, aDespite PHOTOTRONa™s innovative indoor hydroponic gardening products having been promoted in gardening magazines for the past 20 years, the technology has not reached the masses as effectively as many other game-changing household products in other industries. With our strategic vision and sound business foundation in place, Phototron is uniquely positioned to broadly expand the access and reach of the hydroponic gardening markets and thereby realize accelerated growth of revenues throughout the remainder of 2011 and beyond.a

Conference Call

Subsequent to today's release, a conference call to discuss Phototrona™s second quarter 2011 financial results is scheduled for tomorrow, August 16, 2011 at 2:00 pm Eastern.

The teleconference can be accessed by dialing 877-407-9205 when calling within the United States or 201-689-8054 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. There will be a playback available until September 16, 2011. To listen to the playback dial 877-660-6853 when calling within the United States or 201-612-7415 when calling internationally and use account number: 286 in conjunction with replay ID number: 377559.

The conference call will be simultaneously webcast and available at: [ http://www.trilogy-capital.com/autoir/phot_autoir.html ].

About Phototron Holdings, Inc.

Phototron Holdings, Inc. (OTCQB: PHOT) designs and manufactures cutting-edge indoor mini-greenhouses capable of growing herbs, vegetables, flowers, fruits and terrestrial plants stronger and faster than traditional farming methods. The PHOTOTRON Hydroponic Indoor Grow System is the result of decades of research into the precise temperature, light, water and nutrient needs of plants, and allows for indoor gardening 12 months of the year. The PHOTOTRON System uses proprietary lighting that mimics the sun's rays to grow nutrient-rich, pesticide-free, eco-friendly high-yielding crops faster than those of traditional gardening methods, resulting in fruits and vegetables of superior taste and quality. PHOTOTRON systems and accessories are available for purchase from the Companya™s MLM network marketing affiliates. Phototron also supplies a full range of parts, accessories, advanced nutrients and innovative gardening tools and supplies to more than 50,000 customers. For more information, please visit: [ www.phototron.com ] and click on Phototron Holdings, Inc.

For comprehensive investor relations material, including fact sheets, presentations conference calls and video, please follow the appropriate link: [ Investor Presentation ], [ Investor Portal ] and [ Investor Fact Sheet ].

Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward looking statements in this news release include statements regarding new growth initiatives and accelerated growth, successfully monetizing MLM business model, marketing and distribution plans, development activities and anticipated operating results. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as the Company's ability to accomplish its business initiatives, significant fluctuations in marketing expenses and ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of its products and services, as well as the introduction of competing products, or management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and other information that may be detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.