- Oops!Something went wrong.Please try again later.
Winnipeg, Manitoba--(Newsfile Corp. - May 3, 2021) - Novra Technologies Inc. (TSXV: NVI) ("Novra") announced its financial results for the fourth quarter and year ended December 31, 2020. All amounts are in Canadian dollars unless otherwise noted.
Fourth Quarter and Annual 2020 Consolidated Financial Results
As previously reported, COVID-19 had a negative effect on our revenues for the first three quarters of 2020, which materially impacted Novra's annual financial results compared to 2019. However, orders accelerated in the second half of the year and our revenue for the fourth Quarter would have been much higher, but supply chain delays due to COVID-19 moved some of our revenue into first quarter 2021. On December 31, 2020 we had an order backlog and deferred revenue of over $3.8 million, most of which will be recognised in the first half of 2021.
Maintaining adequate available funds to respond to both unprecedented threats and exciting opportunities is a key component of our strategy. Our expense control and cash management efforts resulted in a cash position of $3.9 million ($3.2 million 2019) on December 31, 2020.
As we enter 2021 we are well positioned and pleased to have a healthy backlog plus a number of new large orders that we have received so far in 2021. We are excited that the majority of these orders are for our new innovating products based on modular architectures that we have made considerable R&D investment in over the past 3 years.
To view an enhanced version of this graphic, please visit:
NM - Not meaningful
(1) Amounts in the table may not reconcile due to rounding differences.
(2) Refer to the Management's Discussion & Analysis ("MD&A") for a reconciliation of Adjusted EBITDA to Net Income (loss) as reported under IFRS.
Bottom line results for the year have been positively impacted by a 15% reduction in operating costs ($5.1 million versus $6.1 million). However, a 49% reduction in revenue ($5.0 million versus $9.8 million), lead to increased net income loss (loss of $2.4 million versus $1.7 million) and an Adjusted EBITDA(2) loss.
We expect continued volatility in our revenue for the next several quarters due to COVID-19's on-going effect on the global economy, our clients and the electronics supply chains we depend on to build our products. Management continues its focus of cost containment while making strategic investments in technical innovation and growing customer relationships. Our strategy is to continue our investment in developing new products based on modular designs, which provides the flexibility to meet customers current and future requirements and enables us to win new orders and enter new market verticals.
"Although COVID-19 negatively affected our 2020 financials results, it was very gratifying to see orders starting in late Q3 and continuing into 2021 giving us the opportunity to make-up for the lower revenue of 2020. We are immensely proud that our clients have placed their trust in Novra by embracing our new products and recognizing the value these add to their networks. I am incredibly grateful to my staff for their dedication to maintain top notch support to our clients during COVID-19 and their dedication to continue to develop powerful new products for new market verticals," stated Harris Liontas, President and CEO. "Our significant cash balance and available credit position us well for continued operations, on-going investment in innovation and future growth when the markets return to normal."
For additional details on Novra's results and outlook for the year ending December 31, 2020, please refer to our MD&A and the Consolidated Financial Statements, which are available on SEDAR (www.sedar.com).
About Novra Technologies Inc.:
Novra (TSXV: NVI) is an international technology provider of products, systems and services for the distribution of multimedia broadband content. The Novra Group of companies includes Novra, International Datacasting Corporation, and Wegener Corporation. The companies in the group are known for a strong focus on applications including: broadcast video and radio, digital cinema, digital signage, and highly reliable data communications.
For more information visit: www.novragroup.com
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws, concerning but not limited to: our profitability outlook, the pending acquisition of Wegener, and anticipated developments in our operations in future periods. Forward-looking statements are generally identifiable by words such as "expect", "anticipate", "believe", "intend", "estimate", "predict", "outlook", "opportunity", "momentum", "potential", "targeted", "plans" "possible", "position us for", "looking forward to", "getting ready to", and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. As such, forward-looking statements are not historical facts but reflect our current assumptions and expectations regarding future events. These are subject to a number of risk and uncertainties that could cause actual results or events to differ materially from current expectations and assumptions. Some of these risks and uncertainties are described herein under the "Risks and Uncertainties" section of the MD&A.
For the above reasons, readers are cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
# # #
CONTACT FOR NOVRA:
President & CEO
+1 204 989 4632
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/82619