PowerBand Solutions (TSXV: PBX) this morning reported its third quarter financial results, highlighting revenues of $9.2 million for the three month period ended September 30, a substantial year over year and quarter over quarter improvement for the firm.
Revenues for the quarter were up from just $0.6 million in the year ago period, representing growth of over 1,500% on a year over year basis. Revenues quarter over quarter meanwhile grew 95.9%, nearly doubling from the $4.7 million in revenue recorded for the three months ended June 30, 2021.
Cost of goods sold during the quarter meanwhile amounted to $5.2 million, resulting in a gross profit of $4.0 million. This compares to a gross profit of $2.4 million in the prior quarter, and $0.3 million in the year ago period.
Expenses for the quarter meanwhile amounted to $6.3 million, lead by salaries and wages of $2.3 million. The company overall posted a net loss of $2.3 million for the three month period, along with adjusted EBITDA of negative $0.9 million.
The company also posted cash on hand of $9.2 million.
In commenting on the results, the firm stated that “its true scaling capability will not be appreciated until used car prices normalize, which is expected to gradually improve over the next 12-18 months.” The result of this is expected margin expansion in coming quarters.
PowerBand Solutions last traded at $0.92 on the TSX Venture.
FULL DISCLOSURE: PowerBand Solutions is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover PowerBand Solutions on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.