Phototron Holdings Inc : Phototron Holdings, Inc. Reports Third Quarter 2011 Financial Results

11/21/2011 | 11:00am

New Market Initiatives More Than Double Third Quarter Sales

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 third quarter 2011 financial results for the period ending September 30, 2011.

Phototron Holdings reported a third quarter 2011 revenue increase of 127% compared to the third quarter of 2010. Third quarter 2011 revenue was approximately $210,000 compared to $92,000 in the third quarter of 2010. The increase in revenue is the result of management focusing its efforts on expanding Phototron's marketing activities, and development and launch of new product lines. Phototron intends to further market its products to the public via its new internet initiatives in the fourth quarter. Net loss for the third quarter of 2011 was $2.8 million compared to net income of approximately $38,000 for the third quarter of 2010. The net loss in the third quarter of 2011 was primarily non-cash charges attributable to the vesting of stock options and restricted stock issued for services.

"Phototron is pleased to announce our third quarter 2011 financial results," said Brian Sagheb, Phototron's CEO. "This quarter represented an exciting and transformative period in Phototron's development as we begin to realize some of the benefits of our past growth initiatives after laying much of the necessary groundwork in the first two quarters of the year. After investing heavily in our restructuring, realignment, and new product development Phototron is now starting to capitalize on our strong foundation and effectively monetizing on our new marketing models. With Mike Zappy 'The Internet Warrior' as our recently appointed Chief Internet Strategist our new online sales initiatives are expected to begin generating results starting in December."

Third Quarter 2011 Highlights

• Launched new ECO-Brain Home Hydroponic Automated Controller.
• Launched new T5 PHOTOTRON Hydroponic Grow System.
• Achieved 127% quarterly year over year sales growth.
• Established consumer financing program for PHOTOTRON Indoor Grow System.
• Announced new online sales initiatives with the appointment of renowned social media expert Mike Zappy as Chief Internet Strategist.

Management'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.

Phototron is capitalizing on the rapidly increasing demand for organic produce and alternative medicine. The company is committed to further establishing itself as a leader in the sale of indoor mini-greenhouses and will continue to develop its proprietary technology and nutrients while expanding its global reach through a series of organic growth opportunities and marketing advancements.

Phototron's new online sales model will complement Phototron's previously implemented direct sales initiatives, which were implemented in June and are expected to serve both the $30 billion home gardening market and the $1.7 billion medical marijuana community. The company continues to position itself as it relates to ever changing governmental cannabis policies. Consumers can realize significant financial savings, convenience and quality of all fruits, vegetables, herbs and medicines, with PHOTOTRON's range of products across these market segments.

Craig Ellins, Phototron's Chairman, concluded, "PHOTOTRON has enjoyed strong brand status in the indoor gardening circles for the past 20 years; however, now is the time to introduce the technology to the masses. As we adopt a comprehensive new online marketing strategy we look forward to sharing details on our growth as we move into 2012 and beyond."

Conference Call

Subsequent to today's release, a conference call to discuss Phototron's third quarter 2011 financial results is scheduled for today, November 21, 2011 at 4:15 pm Eastern.

The teleconference can be accessed by dialing 877-407-9210 when calling within the United States or 201-689-8049 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. There will be a playback available until December 5, 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: 383261.

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 crops faster and in more bountiful quantities 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 Company's MLM network marketing affiliates. Phototron supports the sale and use of its products to the home medical marijuana market where compliant with applicable laws. 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.

Financial Communications:
Trilogy Capital Partners, Inc.
Darren Minton, President
Toll-free: 800-592-6067
info@trilogy-capital.com