Business
LiqTech International Inc. Announces First Quarter 2020 Financial Results
BALLERUP, Denmark, May 11, 2020 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT) ("LiqTech"), a clean technology company that manufactures and
About this update from Liqtech International, Inc.
[{"type":"text","content":"BALLERUP, Denmark, May 11, 2020 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT) (\"LiqTech\"), a clean technology company that manufactures and markets highly specialized filtration technologies, announced today first quarter 2020 financial results for the period ended March 31, 2020.\nKey Highlights\nRecord quarterly revenue of $10.3 million Gross Profit margin improved to 25.7% Net income of $0.3 million Successful installation of second new customized furnace First sales of the new, lower cost MK 6.1 marine scrubber filtration system Implementation of plans to reduce annual operating costs by $1.9 million Ending cash balance of $6.3 millionFirst Quarter 2020 Financial Results\nDespite the impacts of COVID-19, the Company achieved record quarterly revenue of $10.3 million in the first quarter of 2020, an increase of 39% compared to $7.4 million in revenue in the first quarter of 2019.\nGross profit for the first quarter of 2020 was $2.6 million, reflecting a gross profit margin of 25.7%, compared to gross profit of $1.5 million in the first quarter of 2019 and a gross profit margin of 19.9%. Improvements in the first quarter 2020 gross margin resulted primarily from sales of the Company's new, higher margin MK 6.1 marine scrubber filtration system design. \nTotal operating expense in the first quarter was $2.5 million compared to $1.5 million in the first quarter of 2019. The increase in total operating expense was due to the increase in personnel hired during 2019 to accelerate market penetration, manage the ramp in manufacturing output, strengthen administrative resources and increase investment in new product development.\nNet income for the first quarter of 2020 was $0.3 million compared to $34,000 in the first quarter of 2019, with the benefits of higher revenue and improved gross margin offset by approximately $0.2 million of non-recurring costs related to the Company's new and legacy furnaces. \nEnding cash balance at March 31, 2020 was $6.3 million, compared to the cash balance of $9.8 million on December 31, 2019. The change is cash was primarily due to increased working capital as a result of the increased activity in the quarter. \nOperational Update\nDue to the global economic impacts from COVID-19, the Company has taken steps to lower its overall cost base and anticipates annual savings of approximately...