Powder producer PyroGenesis Canada Inc has reported revenue of US$818,990 in Q2 2016, a decrease of 47% over the same period in 2015.
According to the company, operations for the periods under review were negatively impacted in the short term by the decision to stop working on a contract to deliver nine plasma atomization systems to an Asian customer for approximately US$10 million. The decision was made when improvements to the system demonstrated that the revenues and profits from selling powders from one system alone, far exceeded, on an annual basis, the one-time profit from selling an additional nine systems.
As a result, the company announced its strategy to move into a potentially lucrative market of producing powders for the additive manufacturing (AM) industry. As PyroGenesis moved away from its dependency on the cash flow expected from the Asian contract, significant pressure has been placed on revenues and associated margins for the period under review, the company said.
‘Notwithstanding the above, based on current backlog at August 30, 2016 of US$10. million (over 160% of 2015 revenues), together with the pipeline of prospective new projects, cash flow from operations are expected to become positive in the very near future,’ it added.
Revenues for the six first months of fiscal 2016 were US$1,835,842, a decrease of 31% over revenues of US$2,650,244 reported during the same period in 2015.
This story uses material from PyroGenesis, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.