Winnipeg, Manitoba--(Newsfile Corp. - November 29, 2022) - Novra Technologies Inc. (TSXV: NVI) ("Novra") has announced its financial results for the nine months ended September 30, 2022. All amounts are in Canadian dollars unless otherwise noted.
Novra is pleased to announce Q3 revenue of $2.1 million (2021: $891 thousand) and Net Income of $14 thousand (2021: loss of $694 thousand), which is a continuation of the improvements in our financial results that began in Q2. While our full nine-month Net Income has not yet recovered from the revenue slow-down in Q1, which was significantly impacted by the geo-political and public health situations that continue to effect global supply chains, Adjusted EBITDA(2) for the full period moved positive.
Consolidated Financial Results for Q3 and the First Nine Months of 2022
At $2.1 million, Q3 revenue improved significantly over the same period in 2021. For the nine-month period, revenue was $5.4 million compared to $5.7 million in 2021 and Net Income was a loss of $836 thousand compared to loss of $47 thousand in 2021. This large difference in Net Income on similar revenue was the result of last year's $1.0 million income from government support programs related to COVID-19, which were provided in 2021, but largely phased out by 2022.
Adjusted EBITDA for the nine-month period was $187 thousand. This measure also trended up this quarter, both compared to the prior quarter and to the same quarter in 2021. In the current quarter Adjusted EBITDA was $318 thousand, compared to negative $380 thousand in the same quarter in 2021, which is an improvement of almost $700 thousand.
(In Thousands)
Three Months Ended September 30,
Period ended September 30,
2022
2021
% Chg
2022
2021
% Chg
Revenue by type:
Products
$
1,809
$
535
238%
$
4,267
$
4,581
-7%
Services
332
356
-7%
1,141
1,116
2%
Total revenue
2,141
891
140%
5,408
5,697
-5%
Gross profit
999
193
419%
2,517
2,760
-9%
Gross margin
46.7%
21.6%
46.5%
48.5%
Operating expenses
1,008
1,185
-15%
3,319
3,720
-11%
Operating income (loss)
(9
)
(992
)
-99%
(802
)
(960
)
-16%
Other income (expenses)
23
298
-92%
(34
)
912
NM
Net income (loss) as reported under IFRS
$
14
$
(694
)
NM
$
(836
)
$
(47
)
1669%
Adjusted EBITDA - non-IFRS measure(2)
$
318
$
(380
)
NM
$
187
$
900
-79%
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.
On September 30, 2022, Novra's deferred revenue and bookings backlog totalled more than $4.2 million and substantial additional bookings have been added in Q4. This provides some visibility into future revenues. However, due to continuing global geopolitical and public health situations coupled with high inflation and rising interest rates, we expect volatility in our revenue and income to continue over the next several quarters as these impact our clients and the economy in general.
Management has taken targeted actions to reduce operating costs. For the most recent quarter, operating costs were 15% lower than the same quarter in 2021. These efforts will continue and we expect to achieve another 10% to 15% reduction in our operating costs over the coming year, largely as a result of right-sizing our facilities' footprints and thus reducing our occupancy costs. Our investments in technology and other operational efficiencies have enabled us to work more productively in less space. At the same time, we continue to invest in focused innovation initiatives and building customer relationships to address current customer needs and position Novra for future growth.
"We are glad to see significant shipments of our 2021 backlog, which started in Q2, continuing in Q3 and excited that our strategic R&D investments in the past number of years have resulted in new products that are addressing the markets' latest requirements. We're thrilled to have both new and returning customers trust us to supply and support their key infrastructure. In particular, we're gratified to have so many returning customers look to us to expand, refresh or upgrade their networks. We believe repeat customers reflect the quality of the solutions we've provided to them in the past, the value of our on-going customer support, and an endorsement of the technical advancements we've made in newer-generation products. We take our responsibility to all our customers very seriously and that guides our efforts every day," said Harris Liontas, President & CEO.
For additional details on Novra's results and outlook for the nine months ended September 30, 2022, please refer to our MD&A and the Consolidated Financial Statements, which are available on SEDAR (www.sedar.com).
About Novra Technologies Inc.:
Novra (TSXV: NVI) (OTCQB: NVRVF) is an international technology provider of products, systems and services for the distribution of multimedia broadband content. The Novra Group of companies includes Novra Technologies Inc, 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.
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", "opportunity", "momentum", "potential", "targeted", "plans" "possible", "positive indication for", "looking forward to", "getting ready to", "is starting to", 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.
