Business
LiqTech International, Inc. Announces Second Quarter 2020 Financial Results
BALLERUP, Denmark, Aug. 10, 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, Aug. 10, 2020 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT) (\"LiqTech\"), a clean technology company that manufactures and markets highly specialized filtration technologies, announced today second quarter 2020 financial results for the period ended June 30, 2020.\nKey Highlights\nRevenue of $4.6 million due to global impacts of COVID-19. Recent ramp-up in inquiries for marine scrubber filtration systems. Formed joint venture to supply water treatment systems for Middle East oil and gas industry. Launched standalone filter press for a wide range of industrial applications. Continued investment in new furnaces to increase total manufacturing capacity. Raised $7.3 million in private placement. Ending cash balance of $16.2 million.Second Quarter 2020 Financial Results\nRevenue for the second quarter of 2020 was $4.6 million, down 50.1% compared to $9.3 million in the second quarter of 2019. As reported previously, we saw a slowdown in inquiries and orders beginning late in the first quarter that continued through the second quarter. The slowdown in orders impacted revenue in the second quarter and is expected to also impact revenue in the second half of the year. However, recent inquiries for the Company's marine scrubber filtration systems have ramped up and we are beginning to win new orders.\nGross profit for the second quarter of 2020 was $0.5 million, reflecting a gross profit margin of 10.7%, compared to gross profit of $2.1 million in the second quarter of 2019 and a gross profit margin of 22.3%. The reduction in gross profit margin was due to the steep drop in revenue for marine scrubber filtration systems combined with a higher fixed cost base from the additional employees hired in 2019 and production facilities improvements. Approximately $0.1 million of non-recurring costs were incurred in the second quarter related to the installation of the second new furnace.\nTotal operating expense in the second quarter of 2020 was $2.4 million compared to $1.7 million in the second quarter of 2019. The increase in total operating expense was due largely to the increase in personnel hired during 2019. The Company took steps at the end of the first quarter to lower its overall cost base and anticipates annual savings of approximately $1.9 million in manufacturing and SG&A costs beginning in the third ...