British Columbia, Canada-based LED lighting and aids to navigation equipment manufacturer Carmanah Technologies reported revenues of US$14.9m for the first quarter of 2018, a gain of $3.8m or 34.3% over the $11.1m that the company reported for the first quarter of 2017.
The revenue increase was attributed to stronger performance by Carmanah’s signals division. Core operating expenditures for the quarter ended March 31, 2018 were also up, with the company reporting $5.3m in expenses compared to $4.0m reported for Q1 of 2017.
The higher expenditures represent an overall increase in G&A expenses as well as amortisation of acquired intangible assets related to the company’s July 2017 acquisition of New Zealand-based Vega Industries, a former competitor in the global aids to navigation market.
As a result of the higher expenditures, gross margin percentage was reported as 42.4%, down 2.5% from the same period in 2017. Net income in the first quarter of 2018 was $0.6m which was unchanged from the same period in 2017.
Carmanah generated an adjusted EBITDA of $1.8m for the quarter, up 11.0% from the $1.6m reported for the same period in 2017.
“Important operational progress was made by our company in the first quarter,” said Carmanah CEO John Simmons. “Continued progress was made for our consolidating integration of Vega Industries by Sabik Marine, and we are targeting the third quarter 2018 to fully integrate and cease operating in New Zealand.”