Clear Blue Technologies International Inc. ("Clear Blue" or the
"Company") (TSXV: CBLU) (FRANKFURT: 0YA) (OTCQB: CBUTF), announces
a Q4 2023 corporate update, including preliminary Q4 financial
results.
Q4 2023 Update – Telecom segment
strength drove Q4 outperformance
- Revenue is
expected to be $2.1M (up $1.922M from $178k in Q4 2022 and almost
equal to Q3 2023, which was $2.2M), exceeding the previously
announced Q4 guidance range of $1.8M - $2M. Q4 continued to exhibit
very strong gross margins in line with previous periods (37% in Q3
2023).
- Revenue was
distributed across all business units:
- Nano-Grid
systems is expected to be approximately 25% of revenue for 2023.
Global investments in satellite technology to bring satellite as a
viable alternative to ground-based microwave and cellular systems
are driving community internet services and rural deployments.
Solar Green energy funds are also moving into the sector to fund
solar deployments for telecom, bringing fresh funding to drive
projects.
- Illumient
systems are expected to contribute approximately 29% of for 2023.
Solar Lighting growth in North America is expected to be driven by
recent legislation in the U.S. and Canada. Customers’ increasing
requirements for resiliency against extreme weather are also
helping drive growth in this segment. Illumient provides the
benefit of having the lights on when the grid goes down while
eliminating pole to pole cabling risks.
- Esite-Micro
systems is expected to represent approximately 46% for 2023. Esite
services existing installations of traditional larger cell towers.
The majority of these have historically been grid or grid and
diesel powered. The cost of diesel is up 300% or more since 2021,
and the grid is becoming less reliable. Not only is the cost of
diesel driving adoption but also the greening of telecom sites is a
major focus across the industry. These sites are being converted to
hybrid powered systems, including solar. As a result, Clear Blue is
seeing significant customer interest in investments and programs in
upgrading existing telecom sites. These investments will convert
grid and diesel dependence towards solar energy.
- In the quarter
the Company shipped 616 power control devices across 14
orders.
- Clear Blue
converted a previously announced Parallel Wireless project to a
full Esite-Micro solution, which shipped in Q4. The impact on Q4
revenue is expected to be $1.1M.
- 2024 revenue is
expected to be significantly greater than 2023 and 2022 revenue
which were $5.4M and $2.6M respectively. With typical business
seasonality, strong sales orders in the first half of the year
leads to stronger revenue in the second half of the year. Clear
Blue’s business growth has accelerated following a challenging 2022
and 2023. This is expected to lead to increased order intake in
2024, followed by revenue growth.
- Clear Blue’s
funnel indicates significant growth going into 2024. All product
lines and verticals are expected to exhibit strong growth in both
sales and revenue. Each of Nano, Micro and Illumient will deliver
approximately one third of the revenue with Pico-Grid beginning to
deliver as the sales Go To Market for this product ramps up. In
addition to our base plan, the Company is tracking a few very large
seven figure orders which could close by mid year. While there can
be no assurance on timing or any specific order closing, they are
indicative of the large investments being made by industry and the
opportunity going forward for Clear Blue.
- The cash
position at the end of the quarter was $0.5M, approximately $2M of
accounts receivables and $2.0M in non-dilutive capital from across
government programs all expected in early 2024.
“The fourth quarter of 2023 saw the Company’s
quarterly performance continue on its pre-COVID trajectory even as
significant costs have been removed from the business,” said Miriam
Tuerk, CEO of Clear Blue. “2023 saw a return to growth, and we
expect to see continued demand for our Illumient, Nano-Grid and
Esite products throughout 2024. We believe our robust and growing
pipeline is providing us increased visibility into order intake for
2024, driven by recent customer signals of market scale for our
technology. These opportunities cumulatively represent an order
pipeline in the low hundreds of millions of dollars, providing
Clear Blue room for years of strong revenue growth.”
Outlook
Clear Blue has a strong 2024 sales funnel for
each product. All products are expected to achieve meaningful
growth with revenue split fairly evenly across each unit.
Potential Illumient order flow includes another
interstate highway interchange project, multiple indigenous first
nations projects, and follow on roadway projects with an existing
city in the U.S. Northeast.
Nano-Grid was materially impacted by funding
delays on rural telecom orders in 2021 and 2022. Clear Blue now has
multiple customers in late stages of financings and expects to see
growth to return to that business throughout 2024. The Company also
expects to see a ramp in satellite / Wi-Fi projects.
With the launch of Clear Blue’s Smart Off-Grid
software service for Esite-Micro, the Company looks forward to
providing continued reliable power for large telecom systems in
2024 and beyond. In addition to the previously announced WATT
Renewable order, several additional projects are expected in the
first half of 2024.
Lastly, 2024 is the first full year of sales of
our Pico-Grid product. As sales ramp up, it is expected to be a
major revenue driver going into 2025.
For more information,
contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.comwww.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies
International
Clear Blue Technologies International, the Smart
Off-Grid™ company, was founded on a vision of delivering clean,
managed, “wireless power” to meet the global need for reliable,
low-cost, solar and hybrid power for lighting, telecom, security,
Internet of Things devices, and other mission-critical systems.
Today, Clear Blue has thousands of systems under management across
37 countries, including the U.S. and Canada. (TSXV: CBLU) (FRA:
0YA) (OTCQB: CBUTF)
Legal Disclaimer
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.
Forward-Looking
Statement
This press release contains certain
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable securities laws. Such
forward-looking information and forward-looking statements are not
representative of historical facts or information or current
condition, but instead represent only Clear Blue’s beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of Clear Blue's
control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or may contain
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "will continue", "will occur"
or "will be achieved". The forward-looking information contained
herein may include, but is not limited to, information concerning
financial results and future upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information and forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended.
In connection with the forward-looking
information and forward-looking statements contained in this press
release, Clear Blue has made certain assumptions. Although Clear
Blue believes that the assumptions and factors used in preparing,
and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed
on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information
and statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release. All subsequent written and oral forward-
looking information and statements attributable to Clear Blue or
persons acting on its behalf is expressly qualified in its entirety
by this notice.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
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