CDTi Advanced Materials, Inc. (NASDAQ:CDTI) Achieved 35% gross margin in the first quarter of 2018

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CDTi Advanced Materials, Inc. (NASDAQ:CDTI) stated its financial results for the first quarter ended March 31, 2018.

Matthew Beale, CDTi’s CEO, stated, “In the first quarter of 2018, we achieved 35% gross margin, over double that obtained in the first quarter of 2017. In addition, we reduced our operating expenses by 45% and created the path to profitability as our advanced materials business gains traction. These achievements were enabled by the successful execution of our 2017 business realignment strategy.

Financial Highlights: First Quarter 2018 Compared to First Quarter 2017

Total revenue was $4.9M, contrast to $8.2M.

Coated catalyst revenue was $2.7M, contrast to $4.7M. The first quarter 2018 is the last quarter in which CDTi will generate revenue from shipments to Honda.

Emissions control systems revenue was $1.8M, contrast to $3.3M.

Technology and advanced materials revenue was $0.4M, contrast to $0.2M.

EPS growth in past 5 year was 45.10% along with sales growth of -14.10% in the last five years.

Gross margin was 35%, contrast to 17%, primarily Because of product mix which reflected the sale of the company’s 2017 DuraFit product line and final shipments to Honda.

Total operating expenses in the first quarter of 2018 were $2.2M, contrast to $3.8M in the first quarter of 2017Because of decreases in sales and support staff resulting from the sale of the company’s DuraFit product line and the completion of its Honda production.

Net loss was $0.3M, or $0.02 per share, contrast to a net loss of $3.1M, or $0.20 per share in the first quarter of 2017.

Cash at March 31, 2018, was $2.1M, contrast to $2.8M at December 31, 2017.

Currently Analysts have a mean recommendation of 3.00 on the shares. This is based on a 1-5 numeric scale where Rating Scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell.

Company Outlook

The company presently expects 2018 revenue of about $12M. With the implementation of local production capabilities in China and India the company believes that a growing pipeline of consumers will start to generate material revenue starting in 2018 and accelerating into 2019.

In addition to materials applications generating revenue in 2018, the company expects that its materials technology will be selected by at least one global OEM for inclusion in next generation exhaust systems and that CDTi will have established at least one joint venture for deployment of its Spinel™ technology in fuel cell and advanced battery applications during the year.

Tags: NASDAQ:CDTI, CDTI, gross margin, Stock Price CDTI, First Quarter 2018, Financial Highlights