Valens Groworks Corp (CVE:VGW) (OTCMKTS:VGWCF) earned net income of $5.9 million in its fiscal third quarter of 2019, the company announced after the close of markets Tuesday.
Revenue also increased to $16.5 million, an 87% increase over the second quarter and a 641% increase over the first quarter of 2019, Valens Groworks said in a statement.
The net income of $5.9 million (or $0.05 per share basic and diluted) marked a big turnaround for the company from when it suffered a net loss of $10.5 million (or a loss of $0.10 per share basic and diluted) in the second quarter of 2019.
Gross profit increased to $12.8 million, or 77.8% of revenue, for the third quarter of 2019, compared to $5.1 million or 57.9% of revenue in the second quarter.
The company ended the quarter with a strong balance sheet with $69.2 million in cash and cash equivalents and short-term investments and a net working capital position of $84.1 million as of August 31.
"The company's performance in the third quarter clearly demonstrates our industry leading technical capabilities, the quality of our products and the earnings power of our platform," said CEO Tyler Robson.
Valens Goworks is a cannabis processor, formulator and product developer. The Kelowna, BC-based firm offers a range of services, which include numerous types of proprietary extraction, analytical testing, formulation as well as white label product development. On the extraction side, Valens offers CO2, ethanol, hydrocarbon, solvent-less and terpene extraction.
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