Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) has released preliminary selected financial estimates for the quarter ended June 30, 2016. As is the Company’s normal practice, this preliminary release includes revenue guidance and commentary respecting order backlogs and gross margins. Full financial statement disclosure is scheduled to be made after market close on August 9, 2016.
Revenues in the second quarter of 2016 were approximately USD $19.5 million, up approximately 24% from revenues of USD $15.7 million in the second quarter of 2015. On a constant currency basis, the revenue increase was 26%.
- Signals Segment revenue was approximately USD $10.7 million or 55% of total revenue. This is a 98% increase over the second quarter in 2015. Comparative revenue growth in the quarter resulted from organic improvements as well as continuing excellent results from the Sabik Group of Companies which was acquired in July 2015. The integration of the acquired business is now fully complete with the result that Sabik OY, based in Porvoo, Finland now manages Carmanah’s worldwide marine aids to navigation business interests; and, Sabik Offshore GmbH, based in Schwerin, Germany now manages Carmanah’s offshore wind marking and safety solutions.
- Illumination Segment revenue was approximately USD $3.2 million or 16% of total revenue. This was up 28% compared to the second quarter in 2015. Comparative growth in Illumination was due mostly to sales generated in the United States and demonstrates that customers are increasingly attracted to solar for lighting parking lots, pathways and streets.
- Power Segment revenue was approximately USD $5.6 million or 29% of total revenue. This was down 28% compared to the second quarter of 2015 primarily due to project delays.
Gross margins in the second quarter of 2016 are expected to be modestly improved when compared to the second quarter of 2015. The improvement largely results from sales mix which, in the quarter, was more heavily weighted to the higher margin Signals Segment.
Order backlog as at June 30, 2016, was approximately USD $11.1 million, down approximately USD $0.9 million from March 31, 2016. The majority of the order backlog is expected to be complete in the third and fourth quarters of 2016.
“Revenues and margins, especially those in our strategically important Signals and Illuminations businesses, continue to improve,” said John Simmons, Chief Executive Officer. “These improvements, together with our constant focus on expense management, has us fully on track to meet our 2016 financial performance goals.”
Full financial statement disclosure is scheduled to be made after market closes on August 9, 2016, followed by the analyst conference call, details for the analyst call will be released approximately one week prior to the call.
About Carmanah Technologies Corporation
Headquartered in Victoria, British Columbia, Carmanah produces a portfolio of products focused on energy optimized LED and solar technologies. We design, develop and distribute energy efficient LED solutions for infrastructure including: signaling systems for the marine aids to navigation, airfield ground lighting, offshore wind marking, aviation obstruction and traffic markets. Carmanah’s product portfolio also includes industrial and commercial solar powered outdoor LED lighting systems, and solar on and off-grid power generation systems. Since 1996, we have earned a global reputation for delivering strong and effective products for industrial applications that perform reliably in some of the world’s harshest environments. Our LED and solar power systems provide durable, dependable, efficient and cost-effective solutions which have been deployed in over 400,000 installations in 110 countries. The Carmanah brand portfolio includes Go Power! and recently acquired companies, Sol and Sabik.
Carmanah Technologies Corporation:
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah.