WINNIPEG, Aug. 29, 2019 /CNW/ - Novra Technologies Inc.
("Novra") (TSX-V: NVI) today announced its financial results for
the second quarter and six months ended June
30, 2019. All amounts are in Canadian dollars unless
otherwise noted.
Second Quarter 2019 Consolidated Financial Results
The following financial summary shows results for the three and
six months ended June 30, 2019.
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(in thousands,
except for Gross Margin and % Chg)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2019
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2018
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% Chg
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2019
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2018
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% Chg
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Revenue by
type:
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Products
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1,744
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$
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1,081
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61%
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3,667
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$
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2,593
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41%
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Services
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679
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513
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32%
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1,256
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1,073
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17%
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Total
revenue
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2,423
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1,594
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52%
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4,923
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3,666
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34%
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Gross
profit
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1,319
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758
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74%
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2,228
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1,638
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36%
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Gross
margin
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54.4%
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47.6%
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45.3%
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44.7%
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Operating
expenses
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1,639
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1,582
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4%
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3,243
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3,281
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-1%
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Operating income
(loss)
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(320)
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(824)
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NM
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(1,015)
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(1,643)
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NM
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Other income
(expenses)
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(170)
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32
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NM
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(319)
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89
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-459%
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Net income (loss)
as reported under IFRS
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(491)
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$
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(792)
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NM
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(1,335)
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$
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(1,554)
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NM
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Adjusted EBITDA -
non-IFRS measure (2)
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73
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$
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(592)
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NM
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(225)
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$
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(1,178)
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NM
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NM – Not
meaningful
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(1)
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Amounts in the table
may not reconcile due to rounding differences.
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(2)
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Refer to the
Management's Discussion & Analysis ("MD&A") for a
reconciliation of Adjusted EBITDA to Net Income (loss) as reported
under IFRS.
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As expected, our first half of 2019 marked a significant
improvement in results over the first half of 2018 and we believe
this momentum will carry into the second half of 2019 and into
2020. Although our 51% ownership of Wegener continues to negatively
impact our financial results, we have taken concrete steps to
improve their financial performance.
Total revenue was $4.9 million for
the first half of Fiscal 2019, a 34% increase over the comparable
period in 2018. Operating income loss improved to $320 thousand for the quarter, compared to a loss
of $824 thousand in the same period
in 2018 and also improved to an operating loss of $1.0 million in the first half of 2019 compared
to a loss of $1.6 million in first
half of 2018.
Adjusted EBITDA, a non-IFRS measure, was positive $73 thousand for the quarter, compared to
negative $592 thousand in Q2 2018,
and for the first six months it was negative $225 thousand in 2019, compared to negative
$1.2 million for the same period in
2018.
In addition to our increased revenue, a reduction in G&A
operating expenses by $170 thousand
for the 6-month period this year versus last also contributed to
this improvement. Additional recent cost cutting efforts totalling
approximately $400,000 in annual
expense reductions have not materially impacted OPEX during this
period, but we expect this to begin having further positive effect
over the next two quarters.
"We are determined to make our operations more efficient and to
improve our agility in product development for our clients. Our
R&D investment of over $3.5
million in the past 18 months is an indication of our
commitment to develop innovative and relevant solutions and allow
us to enter new emerging market verticals. We increased our
marketing expenditures by $125
thousand to promote the Novra Group and our new products,
initiate and nurture partnerships with industry leaders, and enter
new vertical markets. I am excited at the results and
opportunities that have been created by these investments as we
move forward. We are creating value for our shareholders and
are reviewing potential acquisitions that will make Novra an even
stronger technology leader for our clients and resellers." stated
Harris Liontas, President and
CEO.
A copy of the MD&A and audited Consolidated Financial
Statements for the quarter ended June 30,
2019, 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 "expect",
"anticipate", "believe", "intend", "estimate", "predict",
"outlook", "opportunity", "momentum", "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.