Monday 27th February 2012
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Energy Mad, the energy efficient light-bulb maker that went public in November, expects to post a full-year loss - the second time in a month it has cut earnings guidance - after failing to close a $1.8 million deal with a major client.
The Christchurch-based company said it’s unlikely to recognise any revenue in the 2012 financial year from the order, and is forecasting an earnings before interest, tax, depreciation and amortisation loss of $700,000, from an EBITDA profit of $1.1 million flagged last month. Energy Mad said it has struggled to close a deal with a “substantial customer in a key overseas market,” and it’s still too early to say when the order will be secured.
It had previously cut EBITDA guidance from $3.5 million in the offer document due to unexpected delays at its Chinese manufacturing plant and that it hadn’t secured Australian accreditation for its spiral ecobulb.
“Energy Mad’s business is project driven and its revenues are lumpy as a consequence,” chairman Rick Ramsay said in a statement. “Energy Mad has made substantial progress since it listed late last year, has sufficient cash reserves to execute its plans, and remains committed to delivering its FY2013 forecast in full.”
Since then, Energy Mad said production is expected to reach full capacity by the end of this month, and it attained Australian accreditation last week.
The company still expects to be profitable in the 2013 year, forecasting EBITDA of $6.2 million that financial year on revenue of $21.3 million.
The shares were unchanged at 58 cents on Friday, and have shed 42 percent from the listing price of $1 in November.
Energy Mad won $220,000 of government funding to advance its research into new energy-efficient lightbulb solutions last year.
The company has been focusing on organising mass market discounted offerings of energy efficient lightbulbs to customers of energy utilities, with the utilities meeting the cost of subsidising the higher priced bulbs.
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