WINNIPEG, Nov. 29, 2017 /CNW/ - Novra Technologies Inc.
("Novra") (TSX-V: NVI) today announced its consolidated financial
results for the third quarter and nine months ended September 30, 2017. All amounts are in
Canadian dollars unless otherwise noted.
Third Quarter and YTD 2017 Financial Results
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(in thousands,
except for Gross margin and % Chg)
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Q3
2017
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Q3 2016
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% Chg
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YTD
2017
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YTD 2016
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% Chg
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Revenue by
type:
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Products
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$
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1,654
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$
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874
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89%
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$
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6,785
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$
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1,609
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322%
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Services
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394
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296
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33%
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946
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377
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151%
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Total
revenue
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2,048
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1,170
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75%
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7,731
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1,986
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289%
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Gross
profit
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946
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463
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104%
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3,886
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819
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374%
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Gross
margin
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46.2%
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39.6%
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50.3%
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41.2%
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Operating expenses
("OPEX")
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815
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1,049
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-22%
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2,842
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1,757
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62%
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Operating income
(loss)
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131
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(587)
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NM
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1,044
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(938)
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NM
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Finance costs,
net
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(17)
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(28)
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-39%
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(88)
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(86)
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2%
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Other income
(expenses)
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(71)
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(41)
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73%
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(32)
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(116)
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-72%
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Net income (loss)
as reported under IFRS
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$
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43
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$
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(656)
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NM
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$
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924
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$
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(1,140)
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NM
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Adjusted EBITDA -
non-IFRS measure (2)
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$
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244
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$
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(460)
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NM
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$
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1,378
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$
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(691)
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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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The significant variance in YTD 2017 financial results over the
same period in 2016 is largely driven by the acquisition of
International Datacasting Corporation ("IDC"), which closed on
June 15, 2016. The Q3 2016
reflects the first full quarter with IDC's operating results.
Third Quarter Results
We earned $244 thousand Adjusted EBITDA in the current
quarter compared to a loss of $460
thousand in Q3 2016, mainly due to higher revenues at higher
margins and lower OPEX. The following is a high-level
commentary on the variance from Q3 2017 vs. Q3 2016:
- The 75% growth in total revenue benefited in part from
shipments of low margin inventory supplies sold to Wegener.
Excluding sales to Wegener, our Q3 2017 total revenue increased by
59% over Q3 2016. This revenue growth was primarily driven
from both products and services. Products sales benefited
from strong sales within our Data product line, primarily IP
encapsulators and additional perpetual software client licenses
sold indirectly to the U.S. military. Our Services revenue
was also stronger in the current quarter mainly due to new customer
support agreements and selling enhanced customer support plans to
certain existing customers.
- Excluding the impact of low-margin sales of inventory supplies
to Wegener in both periods, our gross margin was 62% in Q3 2017 vs.
47% in Q3 2016. This significant improvement in gross
margin was driven by product mix, including higher software
revenue.
- OPEX for the current quarter decreased by 22% over Q3 2016
mainly due to cost synergies realized since the merger with IDC,
lower compensation, and no acquisition-related costs.
- The change in other income was mainly driven by negative
foreign exchange movement mainly due to the weakening of the U.S.
dollar vs the Canadian dollar.
Harris Liontas, President and
CEO, stated "I am pleased with our fourth consecutive profitable
quarter since the merger with IDC. I expect our fourth
quarter operating results to be soft, in part due to the tragic
earthquake events in Mexico which
caused some customer orders to be delayed. However, we remain
confident this is only a timing issue and continue to pursue these
opportunities actively as well as other promising sales
opportunities in the USA and
Asia. Additionally, with our announcement yesterday regarding
Novra taking a controlling interest in Wegener, we plan to begin
immediately integrating Wegener's operations with the Novra Group
to realize operating efficiencies and combine our sales effort to
drive revenue growth over the next 12 months."
A copy of the MD&A and the unaudited interim Condensed
Consolidated Financial Statements for the quarter ended
September 30, 2017, 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. Novra's applications focus includes:
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. 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. These statements are not historical
facts but instead represent Novra's belief regarding future events,
many of which, by their nature, are inherently uncertain and
outside of Novra's control. It is possible that actual
results will differ, possibly materially, from the anticipated
results contemplated by these statements. Factors that could
cause actual results to differ, possibly materially, from those
forward-looking statements are disclosed in our periodic MD&A
filings on SEDAR at www.sedar.com.
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.
Contact Information:
Harris Liontas
President & CEO
+1 204 989 4632
hliontas@novra.com
Steven Archambault
Chief Financial Officer
+1 613 596 4120 ext. 2296
sarchambault@novra.com
SOURCE Novra Technologies Inc.