877-269-7890 from 8 AM - 10 PM ET
877-269-7890 from 8 AM - 10 PM ET
CALGARY, AB , Aug. 25, 2022 /CNW/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR machines and MRI technology for healthcare and industrial applications, releases its second quarter results ending June 30, 2022. Chief Executive Officer, Sean Krakiwsky and Interim Chief Financial Officer, Randall McRae will host a conference call at 5 P.M. Eastern Time today to discuss the results. A second call will be held for European investors at 8:30am ET on Friday , August 26th. All interested parties are invited to join these calls.
"We continue to record substantial year over year revenue growth," said Sean Krakiwsky, Founder and CEO of Nanalysis. "With that being said, we are not satisfied with our Q2 revenue results, and a lot of focus is being given to regain our previous trajectory. In the second quarter a lot of time, focus, and resources were given to closing the $160 million CATSA contract, which we did on May 25 th. Additionally, we underestimated certain operational challenges associated with scaling our benchtop NMR sales organization which impacted our Q2 revenue. We have redoubled our efforts in this area, which is going well, as are other important areas of our business, and are seeing improvments in the current quarter."
Financial highlights for the three months ended June 30, 2022:
Recent strategic and operational highlights during and subsequent to the second quarter of 2022 include:
For the six months ended June 30, 2022 , the Company reported consolidated revenue of $10,741K , an increase of $3,129K or 41% from the comparative period in 2021. The increase from Q2 prior year can be attributed to the shipment of more units of the 100MHz, coupled with revenue from the recent acquisition, K'Prime.
Gross profit for the six months ended June 30, 2022 , was $6,577K (a margin of 61%) compared to gross profit of $5,037K (a margin of 66%) for the six months ended June 30, 2021 .
The Company's net loss for the six months ended was $(4,024K) , as compared to the six-month loss June 30, 2021 , of $(253K) . The increased loss was due to higher costs, specifically sales and marketing expenses, increased general and administration expenses and increased research and development expenses, both in the Nanalysis segment and from the new acquisitions. In addition, there were business acquisition costs from the two transactions completed, increased depreciation and amortization expense, increased finance expense partially offset by no RS2D earnout in the quarter and increased revenues.
"Our main objective through next year is to capitalize on our recent acquisitions and CATSA service contract. This means we are restructuring and refocusing our benchtop NMR salesforce; we expect to launch the full multi-module high-field NMR product at Quad Systems, and are successfully executing on a methodical rollout of coverage across Canada's airports for the CATSA project," said Sean Krakiwsky .
"We do believe that by the end of 2022, it will become clear that Nanalysis is well positioned for solid growth for years to come, with a strong economic moat, and a motivated team energized for the future. Operational excellence still remains our most important mantra, as we will continue to leverage existing customer relationships, along with our technologies, to fuel growth. So, the rest of 2022 is about consolidation, execution and capitalizing on synergies. We are confident that we will deliver the value we've created by our recent acquisitions to our shareholders," concluded Mr. Krakiwsky.
Investors interested in participating on the live call can dial 1-888-664-6392 or 416-764-8659 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/32l7RdQB0Zw , or on the investor relations section of the Company's website HERE. The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-390-0541 or 416-764-8677, conference ID # 484317.
Additionally, the Company will be hosting a Q&A session for it's European investors tomorrow, Friday, August 26 th at 8:30am ET which can be accessed by the following link: Click here to join the meeting,or call in (audio only) +1 437-703-4522, Phone Conference ID: 636 080 139#.
Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', OTC and the Frankfurt exchange under the ticker symbol '1N1'. The company's business is what we term "MRI and NMR for industry". The company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis recently announced that it has begun selling a 100MHz device in 2020. The Company's new device will be the most powerful and most advanced compact NMR device ever brought to market.
Nanalysis devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.
With the recent acquisition of K'Prime, the company maintains a North American sales and service company of over 40 individuals who cover scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications.
Additionally, the Company has a 43% ownership in Quad Systems AG ("Quad Systems"), with an option to purchase the remaining shares. Quad Systems is a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.
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 Company 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.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information: Matthew Selinger, Firm IR Group, 415-572-8152, [email protected]
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