Strong Order and Revenue Growth Anticipated in Second Half of 2023
2023, Toronto ON -- Clear Blue Technologies International Inc.
(TSXV: CBLU) (FRANKFURT: OYA) (OTCQB: CBUTF), announces its financial results
for the quarter ended June 30, 2023 (“Q2 F2023”). A complete set of Financial
Statements and Management’s Discussion & Analysis (“MD&A”) has been
filed at www.sedarplus.ca.
All dollar amounts are denominated in Canadian dollars.
Trailing Four Quarter (“TFQ”) Financial Highlights:
- TFQ revenue was $1,644,227, a 72%
decrease from $5,886,453 in the corresponding previous period. The current period was
impacted by the economic downturn triggered by the macro-economic events of
- TFQ recurring revenue was $646,416, a 10%
decrease from $718,750 in the corresponding previous period.
- TFQ Gross Profit decreased to $606,008
compared to $1,984,809 in the comparable period, a reduction of 69%.
- Gross margin percentage increased to 37%,
compared to 34% in the same TFQ period of 2022.
- TFQ EBITDA was $(3,639,495) as
compared to $(3,154,258) for the previous period, a reduction of 15%.
Q2 F2023 Financial Highlights:
- Revenue was $752,325, relatively flat from
$782,101 for the quarter ended June 30, 2022 (“Q2 2022”), but up 187% from
$262,137 in the prior quarter (“Q1 2023”).
- Recurring revenue was $139,056,
a 61% decrease from $358,250 in Q2 2022. Clear Blue's recurring service revenue
includes existing site expansion upgrades, which were more frequent in Q2 2022
as compared to the current quarter.
- Gross Margin was 41%, up from 35% in
- Gross Profit for Q2 2023 was $309,007
compared to $277,295 for Q2 2022, an 11% increase.
- EBITDA was $(664,964) versus $(989,498)
in Q2 2022, a 33% improvement from Q2 2022. The improved EBITDA reflects the
Company’s 2022 cost reduction program and government grants offset slightly by increased
costs from eSite operations.
- As of June 30, 2023, bookings
increased to $4,654,287, an increase of 134%, when compared to $1,991,275 as of
December 31, 2022, with delivery anticipated over the next three years in the
case of Illumience/EaaS and typically in the next four to six months in the
case of production orders.
- Cash at June 30, 2023 was $746,100
versus $853,330 at December 31, 2022.
- As of June 30, 2023, the Company has
$5.4 million of available government funding, with $3.65 million receivable in
government grants, and $1.7 million receivable in the form of a 10-year
interest free loan to fund its plans going forward over the next 3 years.
Q2 F2023 Operational Highlights
- May 30, 2023: Clear Blue announced its
first order for its Esite-Micro product.
An African telco has purchased 20 Esite-Micro systems for installation
in new telecom sites in Africa. The project is expected to ship in Q3 of this
year and has an initial value of approximately $375,000.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities described in
this news release. Such securities have not been, and will not be, registered
under the U.S. Securities Act, or any state securities laws, and, accordingly,
may not be offered or sold within the United States, or to or for the account
or benefit of persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act, unless
registered under the U.S. Securities Act and applicable state securities laws
or pursuant to an exemption from such registration requirements.
is for Q3/23 Revenue to be in the range of $1.5 Million to $2.5 Million
Blue’s focus continues to be cash centric.
Revenue growth in Q3 and Q4 2023, net-zero cash burn and positive EBITDA
are still our objectives for the rest of the year.
a result of the eSite acquisition as well as bringing to market 3 new products
in the last 12 months, Clear Blue now has a robust product line, which
significantly expands our addressable market. The sales funnel shows strength
in all markets, with all our products, and we expect this to contribute to the
Company’s revenue for the remainder of 2023 and for 2024.
the $4,654,286 in bookings as at the end of Q2, $3,920,006 is expected to be
revenue recognized over the coming 12 months.
As the bookings and sales funnel convert to revenue, the Company’s
revenue trajectory should swing positive, and management believes that the 2022
downturn, caused by macro-economic factors, is behind us.
orders have been received and continue to be booked, the Company’s focus is on
shipping and delivery. For Q3, we are
currently expecting revenue in the range of $1.5 million to $2.2 million, with
the low end of this range occurring in the event that some suppliers slip their
scheduled shipments from September to October.
Gross Margin, expenses, and net income will generally be in line with
Q4, 2023, we see the potential for it to be our best quarter of the year and
will provide updates to the market as these orders solidify and are scheduled.
Similarly, the Company’s sales funnel has a strong set of projects expected
early in 2024.
summary, management is pleased with our progress coming out of a dismal
2022. The remainder of 2023 is expected
to deliver solid results, and we look forward to showing strong growth into
will host a conference call August 29, 2023 at 11:00 a.m. Eastern Time, to review
the Company's performance and answer questions. Those interested can register here.
Co-Founder and CEO
+1 416 433 3952
Nikhil Thadani, Sophic Capital
+1 437 836 9669
Clear Blue Technologies International
Clear Blue Technologies
International, the Smart Off-Grid™ company, was founded on a vision of
delivering clean, managed, “wireless power” to meet the global need for
reliable, low-cost, solar and hybrid power for lighting, telecom, security,
Internet of Things devices, and other mission-critical systems. Today, Clear
Blue has thousands of systems under management across 37 countries, including
the U.S. and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)
Neither TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
press release contains certain "forward-looking information" and/or
"forward-looking statements" within the meaning of applicable securities
laws. Such forward-looking information and forward-looking statements are not
representative of historical facts or information or current condition, but
instead represent only Clear Blue’s beliefs regarding future events, plans or
objectives, many of which, by their nature, are inherently uncertain and
outside of Clear Blue's control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not
expect", "is expected", "budget",
"scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and
phrases or may contain statements that certain actions, events or results
"may", "could", "would", "might" or
"will be taken", "will continue", "will occur" or
"will be achieved". The forward-looking information contained herein
may include, but is not limited to, information concerning financial results
and future upcoming contracts.
identifying such information and statements in this manner, Clear Blue is
alerting the reader that such information and statements are subject to known
and unknown risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such information and
investment in securities of Clear Blue is speculative and subject to several
risks including, without limitation, the risks discussed under the heading
"Risk Factors" in Clear Blue's listing application dated July 12,
2018. Although Clear Blue has attempted to identify important factors that
could cause actual results to differ materially from those contained in the
forward-looking information and forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
connection with the forward-looking information and forward-looking statements
contained in this press release, Clear Blue has made certain assumptions.
Although Clear Blue believes that the assumptions and factors used in
preparing, and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed on such
information and statements, and no assurance or guarantee can be given that
such forward-looking information and statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated
in such information and statements. The forward-looking information and
forward-looking statements contained in this press release are made as of the
date of this press release. All subsequent written and oral forward- looking
information and statements attributable to Clear Blue or persons acting on its
behalf is expressly qualified in its entirety by this notice.”
release does not constitute an offer to sell or a solicitation of an offer to
buy any of the securities described in this news release. Such securities have
not been, and will not be, registered under the U.S. Securities Act, or any
state securities laws, and, accordingly, may not be offered or sold within the
United States, or to or for the account or benefit of persons in the United
States or “U.S. Persons”, as such term is defined in Regulation S promulgated
under the U.S. Securities Act, unless registered under the U.S. Securities Act
and applicable state securities laws or pursuant to an exemption from such