Nanalysis Announces Second Quarter (Q2) 2019 Financials
CALGARY, Aug. 28, 2019 /CNW/ - Nanalysis Scientific Corp. (the "Company" or "Nanalysis", TSX-V:NSCI), a global leader in magnetic resonance for industrial applications, announced today its second quarter (Q2) financial results for the period ended June 30, 2019.
Nanalysis CEO Sean Krakiwsky states: "We are pleased to report that our year-over-year revenue growth continues. For the six-month period ending June 30, 2019 revenue was $4,599,533, 21% higher than the same period in 2018. For the three-month period, revenue was $2,534,830 compared to $2,178,722 for the same period 2018. Our gross margins continue to increase steadily and are now at 67% for the first half of 2019 compared to 61% in the first half of 2018.
Mr. Krakiwsky continued, "After closing the RTO of Canvass Ventures Ltd. and the concurrent financing, we are now focused squarely on building our business. Our strong balance sheet, including over $9 million in working capital, allows us to do that. We are excited about our advantageous competitive position in the burgeoning compact magnetic resonance space and we expect continued revenue growth for years to come. Although our priority is top-line growth, we also recognize the importance to our shareholders of maintaining a strong balance sheet and managing cash prudently. Our strategy is to grow the business without the need to raise more money. In this context the Company has shown a unique capability, for a growth technology company at this stage, to post positive Net Income in 2017 and 2018. In the first half of 2019 the Company posted Operating Income of $149,802, excluding the one-time item of the RTO transaction costs and finance expenses. (Net and Comprehensive Loss was $1,379,270).
Financial Highlights – Second Quarter to June 30, 2019
- Six-month 2019 revenue of $4,599,533 versus $3,997,498 in 2018
- Q2 2019 revenue of $2,534,830 versus $2,178,722 for Q2 2018
- Six-month 2019 gross margins of 67% versus 61% in 2018
- Q2 2019 gross margins of 70% versus 66% for Q2 2018
- Six-month 2019 Operating Income of $149,802
- June 30, 2019 cash balance of $7,438,748
- June 30, 2019 working capital of $9,926,091
Q2 2019 Operational Highlights
- Closed RTO of Canvass Ventures Ltd. and raised $6.5 million in private placements
- Established collaboration agreements with several new organizations to proliferate the use of magnetic resonance for industrial applications
- Notable new customers in pharmaceutical, chemical, oil & gas, law enforcement, and nutraceutical industries
Please see the Company's full financials posted on Sedar.
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00042572
Board Resignation
At its recent Board of Directors meeting the Company accepted the resignation from the Board of Directors of Dr. Mohamed Abousalem who is stepping down due to other professional commitments, after 10 years of service as a Director of Nanalysis. The Company is thankful to Dr. Abousalem for this long service. Dr. Abousalem will remain a general advisor to the Company.
Stock Option Grant
On August 27, 2019 the Company granted 150,000 stock options with a strike price of $0.60 for 5 years to its manager of investor relations.
About Nanalysis Scientific Corp. (TSX-V:NSCI, FRA:1N1)
Nanalysis is listed on the TSX Venture Exchange in Canada with ticker symbol of 'NSCI'. The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial instrumentation markets. The NMReady-60™ was the first fully featured portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens, and the Company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. On August 26, the Company announced a new 100 MHz device that will ship to advance order customers in Q1 2020.
Nanalysis devices are used by chemical professionals in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, etc.) as well as numerous government and university labs around the world. The Company continues to exploit new global market opportunities with partners and independently.
Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The TSX Venture Exchange or other regulatory authority has not reviewed, approved or disapproved the contents of this press release. We seek safe harbor.
SOURCE Nanalysis Scientific Corp.
Nanalysis Investor Relations, Telephone: +1.587.436.1291, http://www.nanalysis.com/investor-relations
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