Enerdynamic Hybrid Technologies Corp. EDYYF

Solid number and we have no African revenue yet

[jamjam12]

Revenue for the three months ended August 31, 2018 was $413,555 (2017: $342,110). During the current period, revenue representing ENERTEC branded product sales continue to grow despite a plant move that shutdown operations for a third of the quarter. Orders remain in process with revenue recognized as materials are shipped to the customer which is spanning reporting periods. Customs delays in Africa and Puerto Rico, which delayed completed shipments during the prior periods, appear resolved. Going forward, these long delays are expected to be reduced substantially and impact sales minimally. The prior year comparison reflects a lower commercial activity over the full three months of that period compared to two months of production in the current.


Cost of revenue of $839,320 (2017: $327,146) reflects a higher cost of revenue, in part due to the loss of an entire month of the quarter to relocation shutdown. Overtime costs and somewhat higher material costs were incurred while accelerating production in advance of the relocation shutdown. Margins year over year still vary however, that is a function of product mix being sold in each period. Stable and significantly more predictable margins are beginning to materialize. Steady production of ENERTEC wall and roof panels will stabilize the margins by matching fixed overheads to higher production levels and capacity utilization rates.