PyroGenesis Canada Inc (CVE:PYR) (OTCQB:PYRNF), a plasma technology company, revealed Friday that it has a current backlog of $10.5 million in signed contracts as it posted $913,769 in revenue for the second quarter.
In a statement accompanying the Canadian high-tech company’s latest numbers, PyroGenesis CEO Peter Pascali said: “As we have said in the past, 2018 was the year in which the company successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialization. We are in the midst of benefiting from these efforts, and I would like to thank investors for their patience.”
Pascali acknowledged that recent results had been affected by management’s decisions last year to pursue strategic partnerships at the expense of revenue, but said the results were beginning to show.
He noted that the firm has "press released imminent contracts in excess of $32 million, with associated future revenues, well in excess of that which, in my opinion, fully justified that strategy."
"At the risk of repeating myself, let me remind everyone about the importance of reading 2019 results to date in the context of these decisions and recent press releases,” he added.
The new strategy looks to be working as PyroGenesis said in its earnings statement that it had a backlog of $10.5 million in signed contracts.
The plasma manufacturer also said it has established unique relationships with multibillion-dollar entities in each of its three business segments. The company said it hauled in contracts from the US Navy within the military and environmental segment, a Japanese trading house with its DROSRITE offering, and from Aubert & Duval for its additive manufacturing and 3D printing offerings.
PyroGenesis said it should be awarded a two-ship build for its Plasma Arc Waste Destruction System unit, for approximately $13.5 million. The company's PAWDS technology is recognized by the US Navy as one of the best shipboard waste processing technologies in the market. It is the world’s most compact, easy-to-operate, high temperature, plasma-based waste treatment system.
"Add to this the recently announced potential contract with first year revenue of $20 million and the impact of this strategy is apparent: over $32 million in revenue over the next 18 months. Approximately 6x 2018 revenues," said the company in a statment.
During the quarter, the Montreal-based firm also successfully fulfilled a purchase order for a 3D specialty metal powder contract for a government agency.
The company said it expects a follow-on order for its unique specialty reactive metal powder which has 'similar properties to titanium, including being reactive.'
On a corporate level, the company has spun out its additive manufacturing capabilities to better utilize investor funds interested in the additive space alone.
The company saw its second-quarter revenue dip to $913,769, from $1,421,352 in the same period a year earlier. It reported a modified EBITDA loss of $1.4 million, compared to a modified EBITDA loss of $1 million in the same period in the previous year.
Cash on hand at the end of the quarter stood at $1.3 million, compared to $645,000 on December 31, 2018.
PyroGenesis designs, develops, manufactures and commercializes plasma products such as atomized metal powders, plasma waste-to-energy systems and plasma torch products for high-value industries such as military, mining and 3D printing.
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— Adds $13.5 million order for Plasma Arc Waste Destruction System units —