March 28, 2024

Litigation costs hit Photon Control profit

BURNABY, B.C. – Photon Control Inc.’s second-quarter profit fell 63 per cent as it bore the legal costs of three law suits, the company (TSXV:PHO) announced Wednesday.

Its net income dropped to $ 377,189 in the three months ended June 30, down from $ 1 million in the third quarter of 2010.

Two of the suits were settled during the quarter in May.

In the third suit, the B.C. Supreme Court ordered the company to repay $ 374,562 to former president John Kidder. He had borrowed the money from Photo Control but was forced to return it when the company fired him in 2001.

The court also ruled Kidder had been dismissed without cause. It awarded him 18 months notice, payable at $ 130,000 per year in salary, plus the value of benefits he would have received.

Photon Control’s revenue slipped by eight per cent to $ 3.5 million from $ 3.8 million, a decline that the company attributed to the reduced value of the U.S. dollar.

However, the company noted that third-quarter sales were up $ 200,000 or six per cent above the first quarter of 2011.

Photon Control Inc. designs and manufactures optical sensors and instruments to measure temperature, pressure, position, and flow.

Local news from metronews.ca/vancouver

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