WINNIPEG, May 30, 2018 /CNW/ - Novra Technologies Inc.
("Novra") (TSX-V: NVI) today announced its consolidated financial
results for the first quarter of 2018. All amounts are in
Canadian dollars unless otherwise noted.
The results below represent the first quarter of operations that
include Wegener Communications ("Wegener"), after acquiring a 51.6%
controlling interest in Wegener at the end of 2017. The significant
variances in our financial highlights from those in 2017 were
primarily driven by the inclusion of Wegener's operating results
and the lumpy nature of our products revenue.
First Quarter 2018 Financial Results
|
|
|
(in thousands,
except for Gross margin and % Chg)
|
Three Months Ended
March 31,
|
|
2018
|
2017
|
% Chg
|
|
Revenue by
type:
|
|
|
|
|
|
|
Products
|
$
|
1,517
|
$
|
2,172
|
-30%
|
|
Services
|
|
555
|
|
250
|
122%
|
|
Total
revenue
|
|
2,072
|
|
2,422
|
-14%
|
|
|
|
|
|
|
|
Gross
profit
|
|
880
|
|
1,130
|
-22%
|
|
Gross
margin
|
|
42.5%
|
|
46.7%
|
|
|
|
|
|
|
|
|
Operating expenses
("OPEX")
|
|
1,699
|
|
953
|
78%
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(819)
|
|
177
|
NM
|
|
Finance costs,
net
|
|
(52)
|
|
(47)
|
11%
|
|
Other income
(expenses)
|
|
108
|
|
112
|
-4%
|
|
Net income (loss)
as reported under IFRS
|
$
|
(763)
|
$
|
242
|
NM
|
|
|
|
|
|
|
|
Adjusted EBITDA -
non-IFRS measure (2)
|
$
|
(570)
|
$
|
274
|
NM
|
|
|
NM – Not
meaningful
|
|
(1)
|
Amounts in the table
may not reconcile due to rounding differences.
|
|
(2)
|
Refer to the
Management's Discussion & Analysis ("MD&A") for a
reconciliation of Adjusted EBITDA to Net income (loss) as reported
under IFRS.
|
Total revenue decreased by 14% or $0.4
million. The decrease in revenue was due to a softer
quarter for product shipments, including very little product
revenue from our recent acquisition of Wegener. Some of the reasons
for lower revenue from product shipments were delays of several of
our clients' projects and manufacturing lead-times for some of our
products. However, as we reported, our Q1 total revenue and
bookings combined were approximately $6.0
Million and as of May 15, 2018
that total further increased to $8.0
million. Also, our cash position on March 31, 2018 improved to $2,098,000 (Dec 31,
2017: $1,804,000)
Harris Liontas, President and CEO
stated "Although we were expecting a soft start to 2018, I am still
disappointed with our operating performance for the first quarter
of 2018. Our on-going integration and cost rationalization
initiatives are being implemented to position Novra to better
weather lumpy revenue patterns in the future. Also, on the positive
side, I am happy to report strong sales for our products and
services with total orders as of May
15th, 2018 at $8.0
million. With Wegener Communications now part of the
Novra Group, we are executing on our vision to bring great
companies with complementary technologies together to capitalize on
market opportunities and operational efficiencies. The $8.0 million in combined bookings and revenue in
the first 4.5 months of 2018 is indicative of Novra's significant
evolution into a strong, scalable global company in the growing
multimedia broadband content distribution business. Our clients are
trusting us to be their technology partner as they are looking for
next generation advanced, reliable and cost-effective solutions to
deliver their services".
A copy of the MD&A and the unaudited interim Condensed
Consolidated Financial Statements for the quarter ended
March 31, 2018, are available on
SEDAR (www.sedar.com).
About Novra Technologies Inc.:
Novra (TSX-V: NVI) is an international technology provider of
products, systems and services for the distribution of multimedia
broadband content. The Novra Group of companies includes
Novra, International Datacasting Corporation, and Wegener
Corporation. The companies in the group are known for a strong
focus on applications including: broadcast video and radio, digital
cinema, digital signage, and highly reliable data communications.
For more information visit: www.novragroup.com
Forward-Looking Statements:
This press release contains "forward-looking
statements" within the meaning of applicable Canadian securities
laws, concerning but not limited to: our profitability outlook, the
pending acquisition of Wegener, and anticipated developments in our
operations in future periods. Forward-looking
statements are generally identifiable by words such as "expects",
"anticipates", "believes", "intends", "estimates", "predicts",
"outlook", "potential", "targeted", "plans" "possible", "poised
for", and similar expressions, or statements that events,
conditions or results "will", "may", "could" or "should" occur or
be achieved. As such, forward-looking statements
are not historical facts but reflect our current assumptions and
expectations regarding future events. These are subject to a number
of risk and uncertainties that could cause actual results or events
to differ materially from current expectations and
assumptions. Some of these risks and uncertainties are
described herein under the "Risks and Uncertainties" section of the
MD&A.
For the above reasons, readers are cautioned not to place
undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Novra Technologies Inc.