BALLERUP, Denmark, May 11, 2023
/PRNewswire/ -- LiqTech International, Inc. (NASDAQ:
LIQT) ("LiqTech"), a clean technology company that
manufactures and markets highly specialized filtration
technologies, today announced its financial results for the first
quarter of 2023 for the period ended March
31, 2023.
Q1 2023 Financial Highlights
- Revenue of $4.0 million, a 10%
increase from Q1 2022.
- Gross profit margin of 10% compared to 7% in Q1 2022.
- Operating expense of $2.6
million, down 28% from Q1 2022.
- Net loss of $(2.4) million,
compared to $(3.7) million in Q1
2022.
- Strong ending cash balance of $14.3
million.
Recent Operational Highlights
- Signed commercial contracts for delivery of five pool systems
and increased order intake of both ceramic membrane and DPF
orders
- Entered distribution agreement with Singapore-based Liquinex to supply silicon
carbide ceramic membranes
- Established distribution agreement with Silicon Filter for
Chinese phosphoric acid purification market
Management Commentary
Fei Chen, CEO of LiqTech, stated,
"The commercial strategy we put into place is beginning to deliver
the intended results. In particular, we have achieved a good
improvement in our recurring business, including swimming pool
filtration systems, diesel particulate filters and ceramic
membranes with a combined sequential quarterly revenue growth of
27% and improved profitability. We continue to believe there are
excellent opportunities to expand the use of our technologies
within our key market verticals and we look forward to gaining
continued traction. We are also making steady progress in building
our sales pipeline of larger filtration systems for the oil and
gas, acid purification, and broader water treatment markets."
"We have recently signed multiple distribution agreements for
key geographies and market segments to accelerate the adoption of
our unique technologies. As previously announced, we recently
entered into distribution agreements with key partners to advance
adoption of our filtration systems for phosphoric acid purification
within China, and water treatment
in Southeast Asia. We believe
these agreements will expand our market reach into these important
end markets. Additionally, our distribution agreement with NESR is
progressing well--our two companies are becoming more closely
aligned and we have established target opportunities for 2023 for
key ESG applications in the Middle
East."
"Our efforts to expand the commercialization of our core
filtration technologies is being matched by our internal focus on
improving our manufacturing efficiency in order to improve gross
margins. We have made excellent progress in implementing more
efficient manufacturing processes to achieve improvements in our
product and system contribution margins, which have now reached
their highest levels in more than two years, despite ongoing
remediation work and manufacturing optimization costs. These
improvements within manufacturing, along with a more favorable
sales mix and a 28% decrease in operating expense have meaningfully
reduced our quarterly revenue breakeven point to approximately
$7 million, as previously announced.
We look forward to making continued progress in the second quarter
as we execute against our commercial objectives," Chen
concluded.
Q1 2023 Financial Results
Revenue for Q1 2023 was $4.0
million compared to $3.6
million in Q1 2022, representing an increase of 10%. The
revenue increase was due primarily to increased sales activity
within our systems business, with higher deliveries of pool and
marine filtration systems and increased aftermarket sales, partly
offset by lower sales of Ceramic products.
Gross profit for Q1 2023 was $0.4
million, reflecting a gross profit margin of 9.8%, compared
to $0.2 million, or a gross profit
margin of 6.8%, in Q1 2022. The increase in gross profit was due
largely to higher sales, a favorable product sales mix and improved
product contribution margins.
Total operating expense for Q1 2023 was $2.6 million compared to $3.6 million in Q1 2022. The decrease was
attributable primarily to the cost reduction and reorganization
actions that were taken during 2022, resulting in significant
reductions in ordinary SG&A.
Other Income (Expense) in Q1 2023 was $(0.2) million compared to $(0.4) million in Q1 2022 with the improvement
reflecting the repayment of the convertible note, interest income,
partly offset by loss on foreign currency
transactions due to the USD appreciation against the
EURO.
Net Loss in Q1 2023 was $(2.4)
million compared to $(3.7)
million in Q1 2022, due mainly to increased revenue,
decreased operating expense attributable to the cost reduction and
reorganization efforts, and an improved capital structure.
Cash on hand (including restricted cash) on March 31, 2023, was $14.3
million compared to $16.6
million on December 31, 2022.
Q2 2023 Outlook
The Company expects Q2 2023 revenue of approximately
$5.0 million, compared to
$4.0 million for Q1 2023.
Conference Call Details
Date and Time: Thursday, May 11,
2023, at 9:00 a.m. ET
Call-in Information: Interested parties can access the
conference call by dialing (833) 535-2206 or (412) 902-6741.
Webcast: Interested parties can access the
conference call via a live webcast, which is available in the
Investor Relations section of the Company's website
at https://www.liqtech.com/investor-relations/ or at
https://app.webinar.net/DAZpW8dWRYM.
Replay: A teleconference replay of the call will be
available until May 18, 2023, at
(877) 344-7529 or (412) 317-0088, confirmation # 3502560.
About LiqTech International Inc.
LiqTech International, Inc., a Nevada corporation, is a clean
technology company that provides state-of-the-art ceramic
silicon carbide filtration technologies for gas and liquid
purification. LiqTech's silicon carbide membranes are designed
to be used in the most challenging water purification applications,
and its silicon carbide filters are used to control diesel exhaust
soot emissions. Applying nanotechnology, LiqTech develops
products using its proprietary silicon carbide technology,
resulting in a wide range of component membranes, membrane systems,
and filters for both microfiltration and ultrafiltration
applications. By incorporating LiqTech's SiC liquid membrane
technology with the Company´s extensive systems design
experience and capabilities, LiqTech offers unique, turnkey
solutions for the most difficult water purification
applications.
For more information, please
visit www.liqtech.com
Follow LiqTech on
Linkedln: http://www.linkedin.com/company/liqtech-international
Follow LiqTech on Twitter: https://twitter.com/LiqTech
Forward–Looking Statement
This press release contains "forward-looking statements."
Although the forward-looking statements in this release
reflect the good faith judgment of management, forward-looking
statements are inherently subject to known and unknown risks and
uncertainties that may cause actual results to be materially
different from those discussed in these forward-looking
statements. Readers are urged to carefully review and
consider the various disclosures made by us in the reports filed
with the Securities and Exchange Commission, including
the risk factors that attempt to advise
interested parties of the risks that may affect
our business, financial condition, results of
operation, and cash flows. If one or more of these risks
or uncertainties materialize, or if the underlying assumptions
prove incorrect, our actual results may vary materially from those
expected or projected. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only
as of the date of this release.
We assume no obligation to update any forward-looking
statements to reflect any event or circumstance that may arise
after the date of this release.
Company Contact: Simon Stadil, Chief Financial
Officer, LiqTech International, Inc., Phone: +45 3140 9128,
www.liqtech.com;
Investor Contact: Robert Blum, Lytham Partners,
LLC, Phone: (602)
889-9700, liqt@lythampartners.com, www.lythampartners.com
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SOURCE LiqTech International, Inc.