Nov 13, 2012 - Canadian clean energy firm Xebec Adsorption Inc (TSE:XBC) said Monday it had plunged into a net loss of some CAD 621,000 (USD 621,000/EUR 489,000) in the third quarter of 2012 from a net profit of CAD 1.8 million a year ago.
The company posted a loss per share of CAD 0.02 against earnings per share of CAD 0.04 a year ago.
Still, revenues rose by over 25% year-on-year to CAD 3.7 million due largely to optimisation of the company’s overall efficiency and bigger cost cuts.
During the period, earnings before interest, tax, depreciation and amortisation (EBITDA) were negative at CAD 525,000, compared with a positive EBITDA of CAD 2.3 million in the third quarter of 2011. The negative EBITDA and the net loss were largely due to the contraction of the company’s gross margin as a percentage of revenues to 30.4% from 40.7% in the third quarter of 2011.
For the first nine months of the year, revenues contracted to CAD 9.4 million, down 18% from CAD 11.5 million a year ago. However, the successful cost control measures resulted in net profit of CAD 2 million for the period, up from CAD 539,000 last year. This positive result encouraged the company to predict a return to operational profitability within the next few quarters.