Total revenues for the six months ended 30 June, 2007 were approximately $4,975,000 as compared to approximately $5,814,000 for the six months ended June 30, 2006. Over $690,000 of the approximately $839,000 decrease was attributable to a decrease in sales to the pool and spa market, which are down over 26% year over year. The decrease in pool and spa sales was driven by a significant reduction in new pool construction tied to the steep drop in residential construction nationally. There has also been an industry wide slowdown in OEM portable spa sales in the first half of 2007 compared to the same period in 2006.
A company statement says: "International revenue was down $253,000, or 21%, for the first six months of 2007 as compared to the same period in 2006 as a result of decreased sales in several markets. We experienced the most significant decline in sales in Asia, where the Company saw a decrease in sales of its FlexLED sign lighting products due to aggressive local pricing tactics . . . Despite the decreases in pool and spa and international revenue, year to date, commercial lighting revenues were up 6%, or $104,000 to $1,992,000 for the six months ended June 30, 2007, driven by a 43% increase in LED product sales compared to the same period in 2006."
"The company has launched several initiatives focused on increasing revenue in the commercial/architectural lighting market and plans to grow revenue through both strategic acquisitions and new product development," stated Mike Bauer, president/CEO of Nexxus Lighting.
(Jim Evans)
