Ms. Miriam Tuerk reports
CLEAR BLUE TECHNOLOGIES ANNOUNCES Q3 2020 FINANCIAL RESULTS
Clear Blue Technologies International Inc. has provided its 2020 third quarter and trailing four quarter (TFQ) period results, with the following highlights.
Key financial results
TFQ revenue was $3,912,204, a 45-per-cent increase over the previous TFQ period.
Beginning Q2 2020, the company began reporting bookings (see more info below). For the period ending Sept. 30, 2020, the bookings were $1,378,722.
Gross profit for TFQ was $992,485 or 25.4 per cent, down slightly from the previous period ($704,548 or 26.1 per cent). This was largely the result of a reallocation from operating expenses to COGS beginning in Q4 2019. Without this, gross profit or the previous TFQ would have increased to $1,122,616 or 29 per cent.
Operating expenses for the TFQ ended Sept. 30, 2020, were $4,781,601, a decrease of $527,185 or 10 per cent compared with the same period in 2019.
Non-IFRS (international financial reporting standards) adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the TFQ was negative $3,811,233 as compared with negative $4,148,486 for the previous TFQ -- an 8-per-cent improvement resulting from various cost reduction plans undertaken by the company as well as government COVID-19 funding support.
For the quarterly Q3 2020 results
Q3 quarterly revenues were $940,849, a 40-per-cent increase over Q3 2019 ($670,159).
Gross profit for Q3 was $375,595 or 40-per-cent gross margin.
Quarterly, operating expenses increased by $584,067 for the three-month period ended Sept. 30, 2020, versus 2019. This was due to one-time credit of $609,675 for bad debt recovery and government tax credit items in the 2019 operating expenses. Without this, 2020 operating expenses decreased by $25,608 over Q3 2019.
Quarterly adjusted EBITDA was negative $796,293 versus $172,120 for Q3 2019 due to the one-time transaction mentioned above in Q3 2019.
Clear Blue's investment in the telecom vertical and Africa is now yielding great results. Subsequent to the quarter-end, Clear Blue announced its first rollout for Orange in Cameroon, in partnership with Nuran. Nuran and Clear Blue will provide rural telecommunications systems and continuing operational services in Cameroon to Orange SA, one of the world's largest mobile network operators.
Additionally, yesterday, the company was very pleased to announce the award of its third large rollout project. With a major infrastructure operator in Africa, this project is forecast to generate sales of $5-million for 400 telecommunications sites, with 30 per cent delivered in Q4 2020 and the remainder in Q1 2021. These and other activities bode well for Clear Blue's growth trajectory for the remainder of 2020 and into 2021.
"While COVID impacted our Q2 and Q3 2020, the projects are now moving forward," said Miriam Tuerk, co-founder and chief executive officer. "We are thrilled and excited to begin implementing these large projects, and others, after having worked hard to deliver the required technology and service solutions to make this a reality. The entire team at Clear Blue has worked very hard to achieve this milestone and I am thrilled and honoured to represent Clear Blue's co-founders, management and entire team to the market."
While there continues to be significant uncertainty over the forward outlook, as with the world economy and budgets in general, Clear Blue continues to see strong and strategic interest in its offerings in both of its key markets -- North American streetlights as well as telecom in emerging markets. Telecom, connectivity and clean technology are key growth sectors in the world's economy and Clear Blue continues to be positioned as a key and strategic leader in innovating technologies that make it possible to reliably and cost-effectively provide clean off-grid energy to mission critical customers around the world.
The company will host a conference call to discuss its latest financial results at 1:30 p.m. Eastern Time (Canada/United States) on Wednesday, Nov. 18, 2020.
Those interested can register at the company's website.
About Clear Blue Technologies International Inc.
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 United States and Canada.
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