UrtheCast reports a net loss of $11.1 million in the first quarter...

UrtheCast reports a net loss of $11.1 million in the first quarter of 2018

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Canada: UrtheCast has announced financial results for the first quarter that ended on March 31, 2018 and provides an update on its financial condition. 

Revenue was $4.3 million in the first quarter of 2018 compared to $9.4 million in the first quarter of 2017, due to lower revenues from engineering services and EO imagery sales.

Engineering services revenue of $3.3 million in the first quarter of 2018, compared to $7.8 million in the first quarter of 2017, decreased mainly due to a change in the expected completion date of one of our engineering services contracts, which resulted in remaining revenue being recognized over a longer period, and also due to a stronger Canadian dollar as our engineering contracts are denominated in US dollars. Earth Observation (“EO”) imagery revenue of $1.0 million in Q1 2018, compared to $1.6 million in Q1 2017, was lower due to an ongoing delay in securing a major contract award.

The net loss of $11.1 million and negative adjusted EBITDA of $6.1 million in the first quarter of 2018 increased when compared to the net loss of $5.1 million and negative adjusted EBITDA of $1.3 million in the prior year, primarily as a result of the lower revenues.

The Company continues to face significant liquidity challenges with recurring operating losses and negative cash flows.