RE:RE:New Press Release - Biorem Reports 2023 Financial Results including $0.14 earnings per share What can I say, your target has pretty much been reached so I feel wealthier?
My take on the results isn't as bullish as the markets where I think the company is trading on the outlook and management's capabilities ( which I wouldn't bet against and so I am not selling) .
Revenues down year over year.
Gross profit down year over year .
Here's the biggest factor in the market reaction , operating expenses way down - $1,329,00 for Q4 vs $2,594,000 in 2022 and for the year $3,959,000 vs $6,121,000 in 2022.
How did they achieve this?
"The $ 1.2 million decrease in operating expenses year over year was due to a decrease in commission expenses on the reduced revenues, the reversal of $373,000 in credit loss provisions that had been recorded in 2022, and one time legal and settlement expenses incurred in 2022 of approximately $700,000 related to the settlement of a long standing lawsuit."
Two one time items and the commissions paid vary quarter to quarter with completion of projects.
"Total order bookings for the year were $36.5 million , a 3% decrease in bookings over the record bookings in 2022 of $37.7 million . The Company's order backlog stood at $50.1 million on December 31, 2023 compared to $38 million on December 31, 2022 .
"Revenue in the fourth quarter of 2023 was $12.2 million compared to $5.5 million in the previous quarter and $10.9 million in the fourth quarter of 2022. Orders booked in the quarter totaled $7.9 million ."
vs Q3
"During the quarter the Company booked $8.2 million in new orders resulting in another record order backlog of $54.5 million on September 30, 2023 compared to an order backlog of $51.5 million on June 30, 2023 and $43 million on September 30, 2022.
The backlog seems to be shrinking but we know, from a Youtube presentation, a quote a day went out in January so this is probably temporary.
And then there's the outlook
"Management looks forward to beginning the next phase of the Corporation's development", said Derek S. Webb , President and CEO. "A strong backlog; healthy bidding activity and a number of exciting new products introduced and under development promise to provide us with the tools necessary to achieve growth in 2024."
"We are particularly excited about expanding both our organic as well as inorganic growth initiatives. The market has been responsive to our new introductions and we expect the same level of interest with the next offering of complimentary technologies. A number of new initiatives are underway with results expected to begin to be realized within the coming quarters. All in all, a very exciting period for our company."
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