Carmanah Releases Preliminary Financial Results for Q1 2016

VICTORIA, BC, CANADA (April 11, 2016)

Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) has released preliminary selected financial estimates for the quarter ended March 31, 2016.  As is the Company’s normal practice, this preliminary release includes revenue guidance and commentary respecting order backlogs and gross margins. Full financial statement disclosure is scheduled to be made on or about May 6, 2016.

Revenues in the first quarter of 2016 were approximately USD $19.2 million, up approximately 70% from revenues of USD $11.3 million in the first quarter of 2015.  Gross margins in the first quarter of 2016 are expected to be generally stable on a division-by-division basis. 

Order backlog as at March 31, 2016, was approximately USD $12.0 million, down approximately USD $3.7 million the beginning of the year and up approximately USD $1.3 million from March 31, 2015.  The majority of the order backlog is expected to be complete in the second and third quarters of 2016.  

  • Signals Division revenue was approximately USD $10.2 million or 53% of total revenue.  This is a 113% increase over 2015’s first quarter.  Growth in the quarter was achieved organically and by way of the Sabik acquisition which contributed approximately USD $5.2 million.    
  • Illumination Division revenue was approximately USD $1.5 million or 8% of total revenue.  This was down 28% compared to the first quarter in 2015.  While revenues were lower than expected, contract bookings were strong in the quarter.     
  • Power Division revenue was approximately USD $7.5 million or 39% of total revenue.  This was up 71% quarter-over-quarter, driven primarily by strong Off-Grid sales. 

 “Our first quarter in 2016 was very solid in all respects,” said John Simmons, Chief Executive Officer.  “All of our business units continue to progress and are on-track to meet our 2016 goals.”

Full financial statement disclosure is scheduled to be made on or about May 6, 2016, followed by the analyst conference call, details for the analyst call will be released approximately one week prior to the call.  

 

About Carmanah Technologies Corporation

Headquartered in Victoria, British Columbia, Carmanah produces a portfolio of products focused on energy optimized LED and solar technologies. We design, develop and distribute energy efficient LED solutions for infrastructure including: signaling systems for the marine aids to navigation, airfield ground lighting, offshore wind marking, aviation obstruction and traffic markets.  Carmanah’s product portfolio also includes industrial and commercial solar powered outdoor LED lighting systems, and solar on and off-grid power generation systems.  Since 1996, we have earned a global reputation for delivering strong and effective products for industrial applications that perform reliably in some of the world’s harshest environments. Our LED and solar power systems provide durable, dependable, efficient and cost-effective solutions which have been deployed in over 400,000 installations in 110 countries. The Carmanah brand portfolio includes Go Power! and recently acquired companies, Sol and Sabik.

 

Contact
Carmanah Technologies Corporation:
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
investors@carmanah.com

This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

 For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah.