Clear Blue Technologies International Inc. (TSXV: CBLU) (FRANKFURT:
OYA) (OTCQB: CBUTF), announces its financial results for the
quarter ended June 30, 2023 (“Q2 F2023”). A complete set of
Financial Statements and Management’s Discussion & Analysis
(“MD&A”) has been filed at www.sedarplus.ca. All dollar amounts
are denominated in Canadian dollars.
Trailing Four Quarter (“TFQ”) Financial
Highlights:
- TFQ revenue was $1,644,227, a 72% decrease from $5,886,453 in
the corresponding previous period. The current period was impacted
by the economic downturn triggered by the macro-economic events of
early 2022.
- TFQ recurring revenue was $646,416, a 10% decrease from
$718,750 in the corresponding previous period.
- TFQ Gross Profit decreased to $606,008 compared to $1,984,809
in the comparable period, a reduction of 69%.
- Gross margin percentage increased to 37%, compared to 34% in
the same TFQ period of 2022.
- TFQ EBITDA was $(3,639,495) as compared to $(3,154,258) for the
previous period, a reduction of 15%.
Q2 F2023 Financial
Highlights:
- Revenue was $752,325, relatively flat from $782,101 for the
quarter ended June 30, 2022 (“Q2 2022”), but up 187% from $262,137
in the prior quarter (“Q1 2023”).
- Recurring revenue was $139,056, a 61% decrease from $358,250 in
Q2 2022. Clear Blue's recurring service revenue includes existing
site expansion upgrades, which were more frequent in Q2 2022 as
compared to the current quarter.
- Gross Margin was 41%, up from 35% in Q2 2022.
- Gross Profit for Q2 2023 was $309,007 compared to $277,295 for
Q2 2022, an 11% increase.
- EBITDA was $(664,964) versus $(989,498) in Q2 2022, a 33%
improvement from Q2 2022. The improved EBITDA reflects the
Company’s 2022 cost reduction program and government grants offset
slightly by increased costs from eSite operations.
- As of June 30, 2023, bookings increased to $4,654,287, an
increase of 134%, when compared to $1,991,275 as of December 31,
2022, with delivery anticipated over the next three years in the
case of Illumience/EaaS and typically in the next four to six
months in the case of production orders.
- Cash at June 30, 2023 was $746,100 versus $853,330 at December
31, 2022.
- As of June 30, 2023, the Company has $5.4 million of available
government funding, with $3.65 million receivable in government
grants, and $1.7 million receivable in the form of a 10-year
interest free loan to fund its plans going forward over the next 3
years.
Q2 F2023 Operational
Highlights
- May 30, 2023:
Clear Blue announced its first order for its Esite-Micro product.
An African telco has purchased 20 Esite-Micro systems for
installation in new telecom sites in Africa. The project is
expected to ship in Q3 of this year and has an initial value of
approximately $375,000.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
Outlook is for Q3/23 Revenue to be in
the range of $1.5 Million to $2.5 Million
Clear Blue’s focus continues to be cash centric.
Revenue growth in Q3 and Q4 2023, net-zero cash burn and positive
EBITDA are still our objectives for the rest of the year.
As a result of the eSite acquisition as well as
bringing to market 3 new products in the last 12 months, Clear Blue
now has a robust product line, which significantly expands our
addressable market. The sales funnel shows strength in all markets,
with all our products, and we expect this to contribute to the
Company’s revenue for the remainder of 2023 and for 2024.
Of the $4,654,286 in bookings as at the end of
Q2, $3,920,006 is expected to be revenue recognized over the coming
12 months. As the bookings and sales funnel convert to revenue, the
Company’s revenue trajectory should swing positive, and management
believes that the 2022 downturn, caused by macro-economic factors,
is behind us.
As orders have been received and continue to be
booked, the Company’s focus is on shipping and delivery. For Q3, we
are currently expecting revenue in the range of $1.5 million to
$2.2 million, with the low end of this range occurring in the event
that some suppliers slip their scheduled shipments from September
to October. Gross Margin, expenses, and net income will generally
be in line with previous quarters.
For Q4, 2023, we see the potential for it to be
our best quarter of the year and will provide updates to the market
as these orders solidify and are scheduled. Similarly, the
Company’s sales funnel has a strong set of projects expected early
in 2024.
In summary, management is pleased with our
progress coming out of a dismal 2022. The remainder of 2023 is
expected to deliver solid results, and we look forward to showing
strong growth into 2024.
Conference Call
Clear Blue will host a conference call August
29, 2023 at 11:00 a.m. Eastern Time, to review the Company's
performance and answer questions. Those interested can register
here.
For more information, contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.com
www.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies
International
Clear Blue Technologies International, the Smart
Off-Grid™ company, was founded on a vision of delivering clean,
managed, “wireless power” to meet the global need for reliable,
low-cost, solar and hybrid power for lighting, telecom, security,
Internet of Things devices, and other mission-critical systems.
Today, Clear Blue has thousands of systems under management across
37 countries, including the U.S. and Canada. (TSXV: CBLU) (FRA:
0YA) (OTCQB: CBUTF)
Legal Disclaimer
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.
Forward-Looking Statement
This press release contains certain
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable securities laws. Such
forward-looking information and forward-looking statements are not
representative of historical facts or information or current
condition, but instead represent only Clear Blue’s beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of Clear Blue's
control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or may contain
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "will continue", "will occur"
or "will be achieved". The forward-looking information contained
herein may include, but is not limited to, information concerning
financial results and future upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information and forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended.
In connection with the forward-looking
information and forward-looking statements contained in this press
release, Clear Blue has made certain assumptions. Although Clear
Blue believes that the assumptions and factors used in preparing,
and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed
on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information
and statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release. All subsequent written and oral forward-
looking information and statements attributable to Clear Blue or
persons acting on its behalf is expressly qualified in its entirety
by this notice.”
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
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