Wellington Drive narrows 3rd-qtr loss, affirms full-year guidance

Wednesday 30th October 2013

Wellington Drive Technologies, the manufacturer of energy efficient refrigeration motors, narrowed its third-quarter loss by selling higher-margin products and cutting costs, and affirmed its guidance for a smaller full-year loss.

The net loss in the three months ended Sept. 30 was $970,000 from $1.49 million a year earlier, the Auckland-based company said in a statement. Sales fell to $4.7 million from $5.7 million a year earlier, when revenue included $819,000 for its discontinued ventilation business.

Gross margin widened to 23 percent from 14 percent in 2012, reflecting "higher margin product mix and further flow-through of existing supplier cost reductions," the company said.

Full-year revenue was likely to be at the lower end of the $30 million to $33 million range it gave in August. The annual net loss would be "at or below $3.5 million," down from a loss of $6.3 million last year on sales of $35.6 million.

The full-year loss on an earnings before interest, tax, depreciation and amortisation basis would be "below $3 million" and the company is aiming for positive EBITDA in 2014.

The shares last traded at 20 cents and have gained 25 percent this year.

BusinessDesk.co.nz

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