- Technology company, EnWave (TSXV:ENW) has revealed its second quarter report of the financial year, with the company’s net loss ballooning 726 per cent
- The company’s second quarter net loss grew from C$224,000 in 2019 to $1.85 million this year
- EnWave attributes the large loss to the impact of the coronavirus pandemic and the resulting travel restrictions
- Ongoing travel restrictions have limited the company’s ability to sell and install its food packing technology
- EnWave Corporation (ENW) is down 1.2 per cent and is trading at 76 cents per share
EnWave Corp (TSXV:ENW) has revealed its second quarter report of the financial year, with the company’s net loss ballooning 726 per cent.
The company’s second quarter net loss grew from C$224,000 in 2019 to $1.85 million this year.
Furthermore, EnWave reported a 15 per cent fall in revenue, when compared to last year’s corresponding period.
The company’s gross margin for the quarter also fell 40 per cent, down from $3.12 million last year to $1.86 million this year.
Sales and marketing expenditures in the quarter rose by 66 per cent, to $1.76 million, when compared to 2019’s same quarter.
The company attributed its poor performance to the impact of the coronavirus pandemic and its resulting economic effects.
EnWave’s core business is the sale and distribution of its food packaging technology.
EnWave’s business requires staff to travel to secure new licenses and contracts, complete installations and train staff at its clients’ operations.
Due to COVID-19, this has not able to occur anymore, but the company has been working on a remote installation and training program for some of its smaller machinery.
The company was candid about its poor performance, stating that ongoing international travel restrictions, brought on by the pandemic, will likely impact the company’s ability to conduct its business moving forward.
EnWave also stated that the the full-extent of the pandemic’s impact on its operation still remains uncertain and will depend on future developments.
EnWave Corporation (ENW) is down 1.2 per cent and is trading at 76 cents per share at 3:32pm EDT.