LiqTech International Inc (LIQT) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Revenue: $2.5 million, a decrease of 51% from $5.1 million in the same quarter last year.

  • System Sales and Related Services: $0.7 million, down from $2.6 million in the same period last year.

  • DPF and Ceramic Membrane Sales: $1.1 million, compared to $1.6 million in the same period last year.

  • Plastics Revenues: $0.7 million, equivalent to Q3 last year.

  • Gross Margin: Negative gross loss of $0.2 million, compared to a positive gross margin of $0.9 million last year.

  • Operating Expenses: $2.4 million, down from $2.6 million in Q3 of last year.

  • Net Loss: $2.8 million, compared to $1.4 million for the comparable period of 2023.

  • Cash Balance: Ended the quarter with $4.5 million in cash, with a pro forma cash balance of $13.3 million after a private placement.

  • Cost Reduction Plan: Aimed at lowering break-even target to a quarterly revenue run rate of approximately $5.5 million.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • LiqTech International Inc (NASDAQ:LIQT) has more systems in various phases of testing and piloting than at any point in its history, indicating strong potential for future growth.

  • The company has successfully placed pilot units in key markets, including oil and gas, petrochemicals, and lithium brine production, showcasing the versatility and demand for its technology.

  • LiqTech International Inc (NASDAQ:LIQT) has established a joint venture in China to expand its presence in the marine water treatment market, which is a significant growth opportunity.

  • The company has implemented a cost reduction plan, lowering its break-even target and demonstrating a commitment to financial discipline.

  • LiqTech International Inc (NASDAQ:LIQT) ended the quarter with a solid balance sheet, holding a pro forma cash balance of more than $13 million, providing financial stability and flexibility.

Negative Points

  • A large commercial produced water treatment project in North America was delayed, significantly impacting third-quarter results and causing a 51% revenue decrease compared to the same quarter last year.

  • The company experienced a slowdown in its DPF and ceramic membrane business, attributed to temporary market conditions and customer hesitancy due to potential interest rate cuts.

  • Revenue from system sales and related services decreased significantly, from $2.6 million in the same period last year to $0.7 million this quarter.

  • The delivery of swimming pool systems fell short of expectations, highlighting challenges in this segment.

  • Net loss for the quarter increased to $2.8 million compared to $1.4 million for the same period in 2023, indicating ongoing profitability challenges.