Business
Where Food Comes From, Inc. Reports 2020 First Quarter Financial Results
CASTLE ROCK, Colo., May 14, 2020 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (OTCQB: WFCF), the most trusted resource for independent, third-party
About this update from Where Food Comes From, Inc.
[{"type":"text","content":"CASTLE ROCK, Colo., May 14, 2020 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (OTCQB: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced financial results for its first quarter ended March 31, 2020.\n “The first quarter is historically our slowest quarter of the year – and Q1 this year was additionally impacted by the devastating effects of Covid-19 on the food supply chain. As a result, total first quarter revenue declined approximately 1% year over year to $3.9 million from $4.0 million and net loss increased $98,000 to $241,000 from $143,000,” said John Saunders, Chairman and CEO. “We experienced reduced verification activity due to our customers’ no visitor policies as they strive to keep their facilities open while dealing with workforce shortages and shelter in place government mandates. In addition, our software business was impacted by supply chain disruptions and customers delaying purchasing decisions pending more clarity on the schedule for reopening the economy. All segments of the food supply chain have been impacted, including farmers and ranchers, meat processing facilities and food service. In the meantime, lower verification activity has carried into the second quarter and will likely continue to some extent for the remainder of 2020 even as the economy reopens. We have worked to be as nimble as possible during these uncertain times. Our long-term view remains positive as we believe the impact of Covid-19 underscores the importance of traceability in the food supply chain and that our services will be more relevant than ever when the economy is back on track.” First Quarter ResultsRevenue in the first quarter decreased slightly to $3.9 million from $4.0 million in the first quarter last year. Revenue components included: Verification and certification services, flat at $2.8 million.Product sales, up 13% to $725,000 from $641,000.Software license, maintenance, and support (including intercompany sales*), down 32% to $233,000 from $344,000. Software license, maintenance and support (excluding intercompany sales*) down 52% to $143,000 from $295,000. Software-related consulting services (including intercompany sales*), up 20% to $265,000 from $221,000. Software-related consulting services (excluding intercompany sales*),...