CARMANAH RELEASES PRELIMINARY FINANCIAL RESULTS FOR Q1 2016

Apr 25, 2016

Carmanah Technologies Corporation has released preliminary selected financial estimates for the quarter ended March 31, 2016.  As is the Company’s normal practice, this preliminary release includes revenue guidance and commentary respecting order backlogs and gross margins. Full financial statement disclosure is scheduled to be made on or about May 6, 2016.

Revenues in the first quarter of 2016 were approximately USD $19.2 million, up approximately 70% from revenues of USD $11.3 million in the first quarter of 2015.  Gross margins in the first quarter of 2016 are expected to be generally stable on a division-by-division basis. 

Order backlog as at March 31, 2016, was approximately USD $12.0 million, down approximately USD $3.7 million the beginning of the year and up approximately USD $1.3 million from March 31, 2015.  The majority of the order backlog is expected to be complete in the second and third quarters of 2016.  

Signals Division revenue was approximately USD $10.2 million or 53% of total revenue.  This is a 113% increase over 2015’s first quarter.  Growth in the quarter was achieved organically and by way of the Sabik acquisition which contributed approximately USD $5.2 million.  

Illumination Division revenue was approximately USD $1.5 million or 8% of total revenue.  This was down 28% compared to the first quarter in 2015.  While revenues were lower than expected, contract bookings were strong in the quarter.     

Power Division revenue was approximately USD $7.5 million or 39% of total revenue.  This was up 71% quarter-over-quarter, driven primarily by strong Off-Grid sales. 

“Our first quarter in 2016 was very solid in all respects,” said John Simmons, Chief Executive Officer.  “All of our business units continue to progress and are on-track to meet our 2016 goals.”