WINNIPEG, Nov. 29, 2018 Novra Technologies Inc. ("Novra")
(TSX-V: NVI) today announced its consolidated financial results for
the third quarter and nine months ended September 30, 2018. All amounts are in
Canadian dollars unless otherwise noted.
The results below represent the first nine months of operations
that include Wegener Communications ("Wegener"), after acquiring a
51.6% controlling interest in Wegener at the end of 2017. The
significant variances in our financial highlights from those in
2017 continued to be primarily driven by the inclusion of Wegener's
operating results and the lumpy nature of our products revenue.
Third Quarter 2018 Financial Results
|
(in thousands,
except for Gross margin and % Chg)
|
Quarter ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
% Chg
|
|
2018
|
|
2017
|
% Chg
|
|
Revenue by
type:
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
2,908
|
|
$
|
1,654
|
76%
|
|
$
|
5,494
|
|
$
|
6,785
|
-19%
|
|
Services
|
650
|
|
394
|
65%
|
|
1,730
|
|
946
|
83%
|
|
Total
revenue
|
3,558
|
|
2,048
|
74%
|
|
7,224
|
|
7,731
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
2,087
|
|
946
|
121%
|
|
3,725
|
|
3,886
|
-4%
|
|
Gross
margin
|
58.7%
|
|
46.2%
|
|
|
51.6%
|
|
50.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(1)
|
1,527
|
|
815
|
87%
|
|
4,808
|
|
2,842
|
69%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (1)
|
560
|
|
131
|
NM
|
|
(1,083)
|
|
1,044
|
NM
|
|
Other income
(expenses) (1)
|
(93)
|
|
(88)
|
6%
|
|
(5)
|
|
(119)
|
-96%
|
|
Net income (loss)
as reported under IFRS
|
$
|
467
|
|
$
|
43
|
NM
|
|
$
|
(1,088)
|
|
$
|
924
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
non-IFRS measure
|
$
|
862
|
|
$
|
244
|
NM
|
|
$
|
(215)
|
|
$
|
1,378
|
NM
|
|
NM – Not
meaningful
|
|
(1)
|
Amounts in the
table may not reconcile due to rounding differences.
|
|
(2)
|
Refer to the
Management's Discussion & Analysis ("MD&A") for a
reconciliation of Adjusted EBITDA to Net income (loss) as reported
under IFRS.
|
Revenue in this quarter more than doubled from Q2 to
$3.6 million. This brought total
revenue in the first nine months to within 7% of the 2017 value,
after running at 36% under 2017 for the first 6 months of this
year. Strong Q3 revenues drove a profitable quarter, with positive
net income of $467 thousand for the
three month period.
If Wegener's operating results and the amortization of
intangible assets related to the acquisition are excluded, our nine
month results for Novra and IDC would be positive, continuing the
profitable trend from 2017. In Q3, Wegener's operating results were
positive and it is anticipated that they will contribute positively
to the consolidated bottom line in the fourth quarter.
With strong bookings, which are currently approximately
$2.0 million, and $2.7 million in deferred revenue as of
September 30, we expect revenue to
continue to improve through the end of the year.
Harris Liontas, President and CEO
stated "As expected, this quarter marked a significant improvement
in results over the first two quarters of the year. Our integration
and cost-reduction efforts continued to bring expenses in line with
our income. With our strong backlog, significant deferred revenue
and continued focus on cost controls, we are well positioned for a
profitable Q4 and a strong start to 2019. At the same time, our
investments in the development of innovative new products and
services are positioning us to not only remain relevant in our
current markets, but to allow us to expand into new developing
market segments."
A copy of the MD&A and the unaudited interim Condensed
Consolidated Financial Statements for the period ended September 30, 2018, 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. The Novra Group of companies includes
Novra, International Datacasting Corporation, and Wegener
Corporation. The companies in the group are known for a strong
focus on applications including: 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, concerning but not limited to: our profitability outlook, the
pending acquisition of Wegener, and anticipated developments in our
operations in future periods. Forward-looking
statements are generally identifiable by words such as "expect",
"anticipate", "believe", "intend", "estimate", "predict",
"outlook", "potential", "targeted", "plans" "possible", "poised
for", "positioned for", and similar expressions, or statements that
events, conditions or results "will", "may", "could" or "should"
occur or be achieved. As such, forward-looking
statements are not historical facts but reflect our current
assumptions and expectations regarding future events. These are
subject to a number of risk and uncertainties that could cause
actual results or events to differ materially from current
expectations and assumptions. Some of these risks and
uncertainties are described herein under the "Risks and
Uncertainties" section of the MD&A.
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.
SOURCE Novra Technologies Inc.