Probe Manufacturing Provides Shareholder Update
Irvine, California, (April 21, 2014) Probe Manufacturing, Inc., (OTC QB: PMFI) (“Probe” or “the Company”), a global electronics design & manufacturing services company, today is providing shareholders with an update on its operations to date and financial results for the year ending December 31, 2013.
Kam Mahdi, CEO of Probe manufacturing, commented, “We continue to see that the U.S., is once again, reclaiming its role as the center for manufacturing for American innovations. As innovation, cost, and time to market becomes hyper competitive, domestic Original Equipment Manufacturers (OEM) are now compelled to use Electronic Manufacturing Services (EMS) partners with easy onshore access, providing local program management during product conceptualization, development, and integration. We have positioned Probe to take advantage of this marketplace with continued development of our lower cost, highly flexible, scalable and customer centric manufacturing model.”
Mr. Mahdi continued, “Although our fiscal 2013 revenue growth slowed compared to the two previous years, we have not lost a single customer and we were able to hold gross margins steady at approximately 28%. In 2014 we expect revenue growth of at least 20% and to be cash flow positive. During the year we will finalize our aerospace and medical certifications, which will strengthen our footprint in these market with more stabilized and long-term revenue opportunities. Additionally, we anticipate a more aggressive shift in manufacturing to the U.S. We remain committed to driving shareholder value by focusing on several key areas of our business including improving margins through streamlining our processes, evaluating and strategically committing to bolt-on acquisitions such as Trident, driving growth organically, and increasing opportunities for new customer relationships. We are confident that we can achieve all of these goals and in doing so position ourselves to prosper throughout the remainder of the year and thereafter.”
Operational Highlights to Date:
- Completed the acquisition of Trident Manufacturing who generated revenues of approximately $3 million in 2012 and has been servicing the industrial, aerospace, military, instrumentation and medical markets since 2005.
- Selected by Muni-Fed Energy to build proprietary energy saving devices for industrial lights including LiteOwl, an award-winning product designed to save energy for existing streetlights and the E-Series, a series of best-of-breed energy reduction products for industrial lights.
- Added six new customers to further diversify the Company’s customer base.
- Invested in new manufacturing equipment to expand and streamline manufacturing capabilities.
- Launched manufacturing certification programs for AS9100 and ISO13485 certifications in the aerospace and medical industries, respectively.
- Added talented management personnel in the engineering and program management departments.
Financial Highlights for the Year Ending December 31, 2013:
- 2013 Revenue totaled $3.5 million.
- 2013 Gross profit totaled $967,104 and gross profit margins were 27.3%.
- 2013 Net loss totaled $650,652. This decrease was primarily due to the decrease in revenue and an increased investment in the Company’s medical and aerospace certifications.
For full financial results please visit www.sec.gov.
About Probe Manufacturing
Probe Manufacturing is a Global Electronics Design & Manufacturing Services Company providing Original Equipment Manufacturers with electronics manufacturing services through its domestic factories in the United States. Headquartered in Irvine, California, Probe has been serving industrial, instrumentation, medical, aerospace, defense, alternative energy, and telecommunication industries since 1994. Probe’s common stock is traded on the OTC Market QB under the symbol PMFI. Further information is available on Probe’s website: www.probeglobal.com.
This release contains certain forward-looking statements (under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) with respect to whether PMI’s positive financial outlook; it can maintain the increased bookings; whether PMI will be able to successfully integrate Trident Manufacturing’s operations, realize cost savings from the joint operations and capture increased revenue from Trident’s customer base and whether PMI’s net operating loss will continue and have a significant impact on PMI’s financial performance going forward. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: uncertainties relating to changes in general economic and market conditions; uncertainties regarding changes in the EMS industry; the uncertainties relating to the implementation of PMI’s business strategy and adherence to its business model; and other risk factors as outlined in the company’s periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Probe Manufacturing, Inc.
Kam Mahdi, Chairman and CEO
John Bennett, CFO
Alliance Advisors, LLC
(914) 669-0222 x201