Clean Diesel Technologies Inc. (CDTi) has reported its financial results for the second quarter ended June 30, 2017.
Total revenue for the second quarter of 2017 was $8.4 million, level with the second quarter of 2016. Coated catalyst revenue was $4.8 million in both periods. Emissions control systems revenue was $3 million, compared to $2.9 million. Technology and advanced materials revenue was $0.6 million in both periods. Gross margin was 23 percent, compared to 20 percent in the prior year second quarter. The increase primarily reflects a more favorable revenue mix, according to CDTi.
Total operating expenses in the second quarter of 2017 were $2.3 million, compared to $4.8 million in the second quarter of 2016. The decrease reflects the positive effects of the company’s cost-reduction initiatives undertaken in 2016 as well as a reduction in the liability related to the exit of CDTi’s Canadian manufacturing facility. The company said it achieved its goal to reduce ongoing operating expenses to $3 million in the second quarter and anticipates that operating expense will continue at this level or lower for the remainder of the year.
Net loss was $385,000, or 2 cents per share, compared to a net loss of $222,000, or 6 cents per share in the second quarter of 2016.
Matthew Beale, CDTi’s CEO, stated, “We are nearing our goal to complete CDTi’s transition to an advanced materials and specialty coating business model by the end of 2017. Shipments of our advanced materials to commercial partners in China and India are set to begin during the fourth quarter and forward revenue visibility continues to increase for both cost-down and new vehicles programs. We have successfully adapted our technology for deployment in two-wheel and selective catalytic reduction (SCR) applications that offer additional near-term revenue opportunities. Our restructuring and repositioning initiatives have begun to translate into improved financial results with both operating loss and cash burn decreasing significantly during the second quarter. CDTi is nearing the end stages of transitioning to a scalable technology company, providing us with a solid platform to support the ramp of our new powder business in 2018 and 2019.”
Total revenue for the first six months of 2017 ended June 30, 2017, was $16.6 million, compared to $18.2 million for the same prior year period. Gross margin was 20 percent, compared to 24 percent in the same prior year period. Total operating expenses for the first six months of 2017 were $6.1 million compared to $10.8 million in the same prior year period. Net loss for the first six months of 2017 was $3.5 million, or 22 cents per share, compared to net loss of $3 million, or 80 cents per share, in the same prior year period.
Financial Outlook
Based on CDTi’s current business configuration as well as its second quarter results, the company continues to expect revenue to be between $32 million and $35 million and gross margin to be between 23 and 25 percent.
