Home » Electronic Components, Picture Gallery » PEN Inc. Announces Second Quarter 2017 Financial Results

PEN Inc. Announces Second Quarter 2017 Financial Results




MIAMI, FL — (Marketwired) — 08/22/17 — PEN Inc. (OTCQB: PENC) (“PEN” or “the Company”), a global leader in developing, commercializing and marketing consumer and industrial products enabled by nanotechnology, reported financial results for its second quarter ended June 30, 2017.

Scott Rickert, PEN–s President, Chairman and CEO, said: “The second quarter was an active one at PEN. We commenced the relocation of our Ohio operations to a smaller facility nearby, a move that will allow us to outsource a good portion of our manufacturing and lower our cost structure while providing the flexibility to quickly meet the diverse and dynamic packaging needs of our customers. More importantly, it will allow PEN to focus on our primary mission of building a consumer products company offering compelling products enabled by nanotechnology.

“We are preparing for upcoming relaunch of our key health and safety products, including our environmentally friendly surface protector, which we expect to kick off in the fourth quarter once the relocation is complete. The PEN Design Center has evolved into a true development partner for industrial and commercial customers, and is making a name for itself as a key supplier of inks and pastes for the printed electronics industry and graphene foils used in medical imaging. I am impressed with the contributions of our team members on each of these fronts as we move forward to position PEN for future success.”

During the second quarter of 2017, PEN experienced typical quarterly variation in sales and margins of its health and safety products. The Company generated a loss for the quarter, primarily due to expenses associated with the upcoming relocation of its Product segment operations. Despite the net loss and buildup of inventory in advance of the move, the Company generated positive cash flow from operations during the quarter.

For the three months ended June 30, 2017, total revenues were $2,002,609, compared to revenues of $2,209,828 in the comparable period in 2016.

For the second quarter of 2017, overall gross profit amounted to $656,257 compared to $793,086 for the second quarter of 2016. Gross margin was 33%, compared to 36% in the year ago period. The decrease in gross margin was attributable lower gross margins from the Product segment and the Contract services segment during the quarter.

Operating expenses totaled $1,019,827 in the second quarter of 2017, relatively unchanged from $1,012,110 in the second quarter of 2016. In the second quarter of 2017, salaries, wages and related benefits decreased by 41% due to personnel reductions related to the Company–s ongoing efforts to reduce costs. This was offset by increases in selling and marketing expenses associated with higher social media costs, commissions and trade show expenses, professional fees related to contract services that are part of the relocation of the Product segment operations, and an increase in research and development expenses related to work on specialty coatings for new markets and potential enhancements of the surface protector and fortifier product.

Operating loss was $363,570 in the second quarter of 2017, compared to an operating loss of $219,024 in the second quarter of 2016.

Other income was $42,380 in the second quarter of 2017, compared to $93,333 in the second quarter of 2016.

Net loss for the three months ended June 30, 2017 amounted to $321,190 or ($0.11) per basic and diluted share, as compared to a net loss of $125,691 or ($0.04) per basic and diluted share, for the three months ended June 30, 2016.

Basic and diluted earnings per share were based on 3,046,341 and 3,002,658 weighted average shares outstanding, respectively, for the three months ended June 30, 2017 and 2016.

Sales from PEN–s Product segment for the second quarter of 2017 were $1,754,336, down from $1,916,124 for the three months ended June 30, 2016. The decrease in revenue reflects the normal variation in the timing of purchases of health and safety products by the Company–s large customers.

Gross margin in the Product segment in the second quarter of 2017 was 38%, compared to 41% in the year ago period, primarily due to differences in the assortment of products sold.

Revenues from the Contract services segment for the second quarter of 2017 were $248,273 compared to $293,704 in the second quarter of 2016.

Gross margin from the Contract services segment in the second quarter of 2017 was negative 7%, compared to 0% in the year ago period.

For the six months ended June 30, 2017, total revenues were $4,218,959 up slightly from revenues of $4,188,989 in the first half of 2016. Gross profit was $1,589,574 in the first half 2017, up 4% from gross profit of $1,524,210 in the first half of 2016. Gross margin was 38%, up from 36% in the first half of 2016. Net loss for first half of 2017 amounted to $226,778 or ($0.07) per basic and diluted share, as compared to net loss of $245,626, or ($0.08) per basic and diluted share, for the first half of 2016. Basic and diluted earnings per share were based on 3,044,393 and 3,000,152 weighted average shares outstanding, respectively, for the six months ended June 30, 2017 and 2016.

As of June 30, 2017, PEN held cash and cash equivalents of $176,212 as compared to $189,128 at December 31, 2016. As of June 30, 2017, PEN had a working capital deficit of $1,188,809 compared to a working capital deficit of $1,072,691 at December 31, 2016.

During the first half of 2017, PEN generated $180,244 in cash flow from operations. As of June 30, 2017, the Company had short-term debt of $1,004,577 compared to $1,070,137 as of December 31, 2016.

PEN will host an investor webcast on Tuesday, August 29th at 1 pm EDT to discuss second quarter results, provide a business update and take questions from investors. Participants can register 20 minutes prior to the event at: .

Questions for the event may be submitted in advance to .

PEN Inc. (OTCQB: PENC) is a leader in developing, commercializing, and marketing consumer and industrial products enabled by nanotechnology that solve everyday problems for customers in the health, transportation, military, sports, and safety industries. Through PEN–s wholly-owned subsidiary PEN Brands LLC (formerly Nanofilm Ltd.), the Company develops, manufactures and sells products based on nanotechnology including the ULTRA CLARITY® brand eyeglass cleaner, CLARITY DEFOG IT brand defogging products, CLARITY ULTRASEAL® nanocoating products for glass and ceramics and an environmentally friendly surface protector, fortifier, and cleaner. The Company–s Applied Nanotech, Inc. subsidiary in Austin, Texas functions as the Design Center conducting contract services for government and private customers and new product development for PEN focusing on innovative and advanced product solutions in the areas of safety, health, and sustainability. For more information about PEN, visit .

This press release contains forward-looking statements that involve risks and uncertainties concerning our business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in our annual report on Form 10-K for the fiscal year ended December 31, 2016, and in reports subsequently filed by us with the Securities and Exchange Commission (“SEC”). All documents are available through the SEC–s Electronic Data Gathering Analysis and Retrieval System (EDGAR) at or from our website listed above. We hereby disclaim any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

Elaine Ketchmere
PEN Inc.

(844) 273-6462





Posted by on 22. August 2017. Filed under Electronic Components, Picture Gallery. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Archive

© 2018 So-Co-IT. All Rights Reserved. Log in - Copyright by LayerMedia


Blogverzeichnis - Blog Verzeichnis bloggerei.de Blog Top Liste - by TopBlogs.de Bloggeramt.de