exactEarth announces Q3 results; revenue goes up to $2.9 million

exactEarth announces Q3 results; revenue goes up to $2.9 million

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Canada: exactEarth has announced its financial results for the three- and nine-month periods ended on July 31, 2017. Total revenue for the three- and nine-month periods ended July 31, 2017 was $2.9 million and $10.0 million compared to $4.0 million and $15.6 million in the same periods last year. The change in revenue for Q3 2017 was primarily due to $1.5 million of non-cash revenue generated in Q3 2016 from an Asset Transfer Agreement with Communitech related to the EV9 satellite transfer.

There was no revenue related to the Asset Transfer Agreement recognized in Q3 2017. The change in revenue for the year-to-date period was primarily due to lower revenue generated by the Government of Canada (“GoC”) contract in 2017, which accounted for $5.3 million of the difference year-over-year, and lower non-cash revenue related to the Asset Transfer Agreement in 2017, which accounted for $1.7 million of the difference year-over-year. Excluding the impact of the GoC contract and the Asset Transfer Agreement, revenue would have increased by $0.4 million (18%) in Q3 2017 and $1.4 million (18%) year-to-date.

Order bookings for Q3 2017 were $1.7 million compared to $16.0 million in Q3 2016. For the year-to-date period, Order Bookings are $14.3 million compared to $21.1 million in the same period last year. Revenue backlog at July 31, 2017 was $25.8 million compared to $20.6 million at July 31, 2016.

Adjusted EBITDA for Q3 2017 and year-to-date was $(1.2) million and $(2.9) million compared to $(0.29) million and $0.86 million in the same periods last year. The year-over-year decrease in Adjusted EBITDA was primarily due to lower revenue from the GoC contract, offset in part by lower operating expenses.

Net loss for Q3 2017 and year-to-date was $2.6 million, or $0.12 per share, and $4.9 million, or $0.23 per share, compared to $1.2 million, or $0.06 per share, and $31.6 million, or $1.77 per share, in the same periods last year. Net loss for the 2016 year-to-date period includes a $28.0 million non-cash impairment charge related to the write-down of certain assets on the balance sheet. Excluding that item, net loss was greater in the 2017 year-to-date period, primarily due to lower revenue from the GoC contract, offset in part by lower operating expenses.

“The key event of the quarter was the official service launch of exactView RT, our second-generation satellite constellation service,” said Peter Mabson, CEO of exactEarth. “Hosted onboard the Iridium NEXT satellite constellation, exactView RT is a system of more than 60 maritime satellite payloads that we believe will be the only offering on the market capable of delivering high performance high reliability real-time global vessel tracking for a population of more than 250,000 vessels.”

Mr. Mabson added, “As of today, our 16-satellite constellation includes nine exactView RT payloads in service, with additional launches expected through the end of this year and into 2018. Already we are receiving positive feedback from the market on the utility of this new capability in core application markets such as surveillance, vessel tracking and commodity flows. We believe that the real time exactViewRT capability will be a significant driver for the business going forward.”