Carmanah Q2 net loss expands

Aug 15, 2012 - Canadian Carmanah Technologies Corp (TSE:CMH) said today its second-quarter net loss deepened to USD 1.5 million (EUR 1.2m) from USD 200,000 a year ago.

The company provides solar light-emitting diode (LED) lights and solar power systems. Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came negative at USD 1.7 million from positive of USD 600,000 in the same period of 2011.

Gross margin contracted to 29.1% from 30.6% as a result of price discounts at Carmanah’s outdoor lighting segment to support its market expansion efforts and price adjustments at the marine segment provoked by competitive activity.

Second-quarter revenue fell to USD 6.1 million from USD 10.7 million. Carmanah said that during the reporting period its Grid Tie segment failed to turn into revenues certain feed-in tariff contracts in its backlog. The company added that demand at several verticals had remained weak and that no large projects had been closed between April and June.

At the end of the second quarter Carmanah had cash and cash equivalents of USD 3.1 million.

(USD 1 = EUR 0.814)

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