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FormerXBC Inc XEBEQ

Xebec Adsorption Inc designs, engineers, and manufactures products that are used for purification, separation, dehydration, and filtration equipment for gases and compressed air. The company operates in three reportable segments: Systems, Corporate and other, and Support. Its product lines are natural gas dryers for natural gas refueling stations, compressed gas filtration, biogas purification, associated gas, engineering services, and air dryers. The company's geographical segments are United States, Canada, China, Other, Korea, Italy, and France.


GREY:XEBEQ - Post by User

Comment by kulewateron May 12, 2022 10:06am
156 Views
Post# 34677488

RE:More details needed on impact of legacy projects

RE:More details needed on impact of legacy projectsThe legacy BGX expenses stem from start-up and commissioning of custom systems.

As the company has progressed to containerized and uniform Biostream units the margins will improve moving forward. Until they completely shed the go-live of legacy units it will hamper margins. The good news is that once the units are commissioned it will drive additional service revenues.

From my perspective it seems they have tried to front load extraordinary expenses into Q1 and as this year progresses there will be less drag on the bottom line.

100% year over year revenue growth is impressive.. and the profile of those projects will be significantly more profitable. The backlog and quote activity are the leading indicators shareholders should be most interested in.
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