In late September the Oregon-based company announced plans to sell its electromechanical business to a private entity.
The sale of the electromechanical business coupled with new CEO Jim O’Neil is part of the company’s strategy to reshape the company into a diversified energy infrastructure services provider to the North American energy market through aggressive acquisitions.
"Our third-quarter results reflect continued strength in our engineering and integration services in North America that offset lower revenue from our U.K. operations due to the continued headwinds associated with Brexit," said William Clough, executive chairman of CUI Global.
"With these transactions, we move forward with a recast balance sheet and the financial resources to support the company's Energy-centric growth strategy with Jim O'Neil as CEO."
O’Neil told investors in a statement that secular trends in the oil and natural gas, electric power and telecommunications industries have created a “sustained market opportunity” for CUI Global.
“With the divestiture of the majority Power and Electromechanical segment, we turn our full attention to executing on our strategy to diversify our Energy business into the infrastructure services market and build a recurring revenue and earnings stream through acquisitions and organic growth,” O’Neil said.
During the three-month period ended September 30, the company posted total revenue of $6.1 million compared to $5.2 million in the year-ago quarter. Gross profit was $1.4 million compared to $1.3 million.
The company’s operating loss was $3.7 million compared to an operating loss of $3.3 million over the same period a year prior.
It ended the quarter with $1.7 million in cash.
CUI’s shares closed Tuesday at $0.86.
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