Clean Diesel Technologies Inc. (CDTi), a leader in advanced emission control technology, reported its financial results for the third quarter ended Sept. 30, 2017.
Matthew Beale, CDTi’s CEO, stated, “The third quarter marked several critical milestones in CDTi’s development as a provider of enabling technology to the automotive catalyst industry. We completed our business realignment with the sale of our downstream distribution activities in the North American aftermarket, secured our first Chinese OEM vehicle platform for our advanced materials and signed a joint development agreement with a major global OEM focused on material systems for catalyst applications.”
“Importantly, the global regulatory environment, automotive industry trends and commodity price dynamics further strengthen our unique value proposition. With our streamlined operations, lower cost base and clean balance sheet, CDTi is ideally positioned to capitalize on its growing commercial pipeline,” he said.
Financial Highlights: Third quarter 2017 compared to third quarter 2016
- Total revenue was $6.9 million, compared to $10.1 million.
- Coated catalyst revenue was $3.5 million, compared to $7.1 million.
- Emissions control systems revenue was $2.9 million, compared to $2.8 million.
- Technology and advanced materials revenue was $0.5 million, compared to $0.2 million.
- Gross margin was 22 percent, compared to 27 percent. The decrease primarily reflects the impact of overhead on lower sales.
- Total operating expenses in the third quarter of 2017 were $3.3 million, compared to $3.7 million in the third quarter of 2016 including severance costs and a significant investment in outside testing as the company partners with OEMs in China on powder-to-coat implementations. The company says, as it realized the full benefit of headcount reductions executed in the third and fourth quarter resulting from the sale of Durafit and the exit of high-volume coating activities, along with other cost cutting measures, the operating expenses will decrease to $2 million per quarter in 2018.
- Net loss was $360,000, or 2 cents per share, compared to a net loss of $12.6 million, or $2.14 per share in the third quarter of 2016.
- Cash at Sept. 30, 2017, was $3.3 million, compared to $7.8 million at Dec. 31, 2016.
Financial Highlights: Nine months ended Sept. 30, 2017 compared to 2016
- Total revenue for the first nine months of 2017 was $23.5 million, compared to $28.3 million for the same prior year period.
- Gross margin was 21 percent, compared to 25 percent in the same prior year period.
- Total operating expenses for the first nine months of 2017 were $9.3 million compared to $14.4 million in the same prior year period.
- Net loss for the first nine months of 2017 was $3.8 million, or 24 cents per share, compared to net loss of $15.6 million, or $3.49 per share, in the same prior year period.
Based on CDTi’s current business configuration as well as its third quarter results, the company now expects full-year revenue to be approximately $28 million and gross margin to be approximately 22 percent.