HaloSource Inc Trading Statement (1891F)
26 July 2016 - 4:01PM
UK Regulatory
TIDMHAL TIDMHALO
RNS Number : 1891F
HaloSource Inc
26 July 2016
26 July 2016
This announcement contains inside information
HaloSource, Inc.
("HaloSource" or the "Company")
TRADING UPDATE
HaloSource, Inc. (HAL.LN, HALO.LN), the global clean water
technology solutions company traded on London's AIM, today issues a
trading update for the six-month period ended 30 June 2016.
Following the sale of the Company's Recreational Water and
Environmental Water businesses ("Discontinued Segments"), total
revenue from continuing operations for the period ended 30 June
2016 was $1.4 million (H1 2015: $2.7 million). Drinking Water
revenue for H1 2016 was primarily impacted by manufacturing related
production stoppages at one of our key customers in China
(unrelated to product supplied to the customer by HaloSource),
resulting in customer orders in hand of approximately $750,000 not
being shipped. However, our customer's manufacturing challenges
have now been resolved and they restarted production in July 2016.
Revenues were also impacted by lower than expected revenues from
major customers in India and Latin America, which more than offset
better than expected sales to the Company's second largest customer
in China.
The Company continues to make significant reductions in its
operating expenses, having transferred much of the responsibility
for short and medium term operation of the Drinking Water business
from the US to its Chinese and Indian business units and disposing
of the Discontinued Segments in H1 2016. Headcount at our US
facility was reduced from 50 to 22 during H1 2016, and the Company
intends to further reduce operating expenses in H2 2016 whilst
maintaining the integrity of its operations and continuing to
develop new products for both existing and new customers.
At 30 June 2016, the Company had a cash balance of $4.1 million
and was debt free. The Company currently expects a further cash
infusion of approximately $2.9 million to be received in August
2016 from the purchaser of the Company's Recreational Water
business. Given the reduction in revenue from continuing operations
compared to the prior year, management expects that revenue for
2016 will be in a range of $4 million to $6 million. Management
continues to expect net loss for 2016 will be in line with current
market expectations primarily as a result of an expected gain on
sale from the disposal of our Recreational Water business.
Whilst our business continues to build on a strong base of
customer relationships with some of the world's best known
participants in the Drinking Water segment in China, India and the
Americas, we are also diversifying our application mix beyond
gravity fed water devices by penetrating the fast growing reverse
osmosis market, initially in China. Our HaloPure(R) disinfection
technology has been used to provide compliance with biofilm and
recontamination regulation in an increasing number of existing
partner reverse osmosis devices, which we believe is an exciting
new category for us.
The Company continues to strengthen its intellectual property
portfolio with the development of its HaloPure(R) adsorption media
for lead removal, which is in the final stages of commercialisation
and is expected to be available to customers in early 2017. With
this technology platform, we are building on our existing
HaloPure(R) business to introduce new solutions in additional
point-of-use segments such as pitchers, bottles and in line
applications as quickly as possible to deal with both heavy metal
and biological contaminant removal.
Martin Coles, CEO of HaloSource, commented:
"During the first six months of 2016 we exited two of our three
business segments and significantly reduced our operating costs as
critical first steps in our strategy of becoming the technology
solutions provider of choice for multi-national companies operating
in the Drinking Water sector. The Company remains committed to
accelerating commercialisation of our unique, proprietary water
purification technologies by leveraging both the go-to-market
capacity of our existing customer base and aggressively adding new
players at the regional level. Against this backdrop, we expect to
deliver gross margin expansion and tight control of operating
expenses in addition to revenue growth."
Enquiries:
HaloSource
Martin Coles, Chief Executive Officer +1 425 974 1975
Craig Crowell, Chief Financial Officer +1 425 974 1937
Liberum Capital (NOMAD and Broker)
Richard Bootle/Jill Li/Steve Pearce +44 203 100 2222
Allenby Capital (Joint Broker)
Chris Crawford/Kat Perez +44 203 328 5656
Newgate (PR Adviser) +44 207 680 6550
James Benjamin/Alex Shilov/Lydia Thompson halosource@newgatecomms.com
About HaloSource
HaloSource, Inc. innovates and integrates technologies to
deliver clean, drinking water solutions to partners with trusted
brands around the world. The Company works with scientists and
industry experts across the globe in search of new ways to improve
drinking water quality and has been awarded more than 30 patents
for its ground breaking chemistries, which provide safe drinking
water for more than 10 million consumers globally. The Company's
class-leading HaloPure(R) Drinking Water technology has the highest
global certifications, including registration with the US EPA.
Founded in Seattle, Washington, HaloSource has grown to become
an influential leader in drinking water purification. HaloSource is
headquartered in the US with operations in China and in India.
Learn more about the Company's research and development and future
cutting edge technologies by visiting www.halosource.com.
HaloPure is a registered trademark of HaloSource, Inc. All other
trademarks, brand names or product names belong to their respective
holders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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