Carmanah Technologies Corporation (TSX: CMH) (the Company or Carmanah) today reports its third quarter financial results for the three-month period ending September 30, 2010 and announces the termination of the previously announced agreement to acquire all of the outstanding shares of Lightech Electronics Industries Ltd (Lightech).
Q3 2010 ResultsSales for the quarter were $8.6 million, down $0.9 million from the same period last year. Third quarter Signals & Illumination sales increased by $0.4 million over the third quarter of the prior year, mainly due to a significant increase in marine product sales. Sales from Systems & Other decreased in the quarter by $1.3 million compared to the same period of the prior year, primarily as a result of a substantial spike in sales during the third quarter of 2009 resulting from a significant off-grid system sale and a one-time clearance of obsolete and discontinued products.
Highlights for the QuarterSales: $8.6 million, down from $9.5 million for the same period in 2009
Gross margin: 35.1%, up from 32.8% in 2009
Operating costs: $3.0 million, down from $3.2 million in 2009
Net (loss)/income: $(0.1) million, down from $1.2 million in 2009
Adjusted EBITDA: $0.9 million, down from $1.4 million in 2009
Cash balance: $6.0 million as at September 30, 2010, down from $8.7 million at December 31, 2009
Debt: Continued debt-free operations
Summary of ResultsSales for the quarter were up slightly over the first and second quarters of 2010 with growth in both the Signaling and Grid-tie segments. The increase in Signaling product sales was the result of higher sales within the Marine segment. For Grid-tie, sales increased primarily as a result of the Ontario Feed in Tariff program. Partially offsetting the increases in these segments was a decline in EverGEN illumination outdoor area lighting sales, reflecting the lumpiness of orders for this product line. Sales achieved were $0.7 million for the quarter, down $0.5 million from the second quarter, with trends suggesting some recovery towards year end. The newest EverGEN family member, the 1710 series with industry recognized Advanced Occupancy Sensing feature, launched in May, 2010 in Las Vegas, Nevada, at the annual Lightfair trade exhibition and conference, has shown a very positive market reception. The 1710s performance, high level of industrial design and integration and net price-to-value, suggest that demand for the product will increase in upcoming quarters.
The third quarter experienced revenue and gross margin growth over the second quarter of 2010, as well as improved gross margin over the third quarter of 2009. stated Ted Lattimore, Chief Executive Officer. Carmanah benefited from strong marine sales as a result of the Gulf of Mexico oil spill; as well, the first wave of Grid-tie solar system purchasing was realized from the Ontario Feed-in Tariff program.