HIAWATHA, KS, Oct. 6, 2016 /CNW/ - (TSX: AJX) -- AgJunction Inc. ("AgJunction" or the "Company"), a leader in automated steering and machine control technology for precision agriculture, reported preliminary revenue results for its third quarter ended September 30, 2016.
AgJunction expects revenue for the third quarter of 2016 to be approximately $6.5 - 6.7 million compared to $7.6 million in the same period a year ago. The prior year third quarter figures were before the acquisition of Novariant. The pro-forma unaudited revenue for third quarter of 2015 would have been $10.8M had Novariant been merged with AgJunction. The preliminary results reflect current business indicators and expectations, as well as the continued general weakness currently being experienced in the agriculture industry.
"General weakness within the agriculture markets in the first two quarters of 2016 has continued into the third quarter, resulting in lower year-over-year sales volumes," said Dave Vaughn, President and CEO of AgJunction. "We continue our efforts to align our cost structure with expected volumes to manage through the extended downturn in the agriculture industry, but allow us to grow when the industry rebounds."
Inherent in this update are risk factors affecting volatility in the Company's business which are described in greater detail in its regulatory filings. This update is based on management's current beliefs and assumptions.
Financial results for the third quarter ended September 30, 2016 will be released on November 9, 2016. Further details about the call will be announced at a later date.
AgJunction (www.agjunction.com) provides innovative hardware and software applications for precision agriculture worldwide. The company holds more than 140 patents and markets its products and services under leading brand names including Novariant, Outback Guidance® and Satloc®. AgJunction is headquartered in Hiawatha, Kansas, with executive offices in Fremont, California, and facilities in Scottsdale, Arizona; Winnipeg, Manitoba; and Brisbane, Queensland, Australia. AgJunction is listed on the Toronto Stock Exchange (TSX) under the symbol "AJX." For more information, please visit www.agjunction.com.
Certain statements contained in this press release constitute forward looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur. We believe the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. In particular, this press release contains forward looking statements pertaining to, but not limited to, anticipated revenue and net income levels for the third quarter of 2016 and the full year 2016 as compared to the same periods in 2015. Such forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond AgJunction's control, including, but not limited to: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility, competition, availability of key supplies and components and other factors described under "Risk Factors" in our Annual Information Form for the year ended December 31, 2015, which is available on our SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive. With respect to forward-looking statements contained in this press release, we have made assumptions regarding, among other things: conditions in general economic and financial markets; future technological developments; availability of key supplies, components, services, networks and developments; future exchange rates; demand for agricultural products; the impact of increasing competition; availability of skilled labor; and our ability to obtain financing on acceptable terms. Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide shareholders and investors with a more complete perspective on AgJunction's current and future operations and such information may not be appropriate for other purposes. The forward looking statements contained in this press release are expressly qualified by this cautionary statement. Except as required by law, we undertake no obligation to publicly update or revise any forward looking statements.
SOURCE Agjunction Inc.