Nanalysis Reports First Quarter 2023 Results
CALGARY, AB, May 25, 2023 /PRNewswire/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR machines and MRI technology for industrial and research applications, releases its first quarter results ending March 31, 2023. Chief Executive Officer, Sean Krakiwsky and Chief Financial Officer, Randall McRae will host a conference call at 5 P.M. Eastern Time today to discuss the results. The second call for European investors at 8:30am ET, tomorrow, Friday, May 26 has been cancelled since Mr. Krakiwsky will be conducting meetings in person.
"Nanalysis reported consolidated revenue of $4,674K for the first quarter of 2023," said Sean Krakiwsky Founder and CEO of Nanalysis. "We planned and expected K'Prime's CATSA airport security contract and Quad's revenue to be modest in the quarter as those business lines are in the early stage of roll out, but we underperformed on the rest of our business segment revenues, particularly in Benchtop NMR. Management is not satisfied with this overall financial result and has taken corrective action as identified below. That being said, I remain confident about the Company's prospects and long term vision."
Financial and Operational Highlights1
Financial highlights for the three months ended March 31, 2023:
Recent strategic and operational highlights during and after the first quarter of 2023 include:
Comments and Outlook
"The first quarter was busy with focus on training and rolling out of the CATSA project," said Sean Krakiwsky, Founder and CEO of Nanalysis. "We have hired and trained nearly 92% of the workforce needed and we are servicing over 50% of contracted airports now, with all locations coming online by September. Additionally, we are already fielding requests for additional service contracts."
"We continue to innovate and improve our core benchtop NMR products with added features and functionality. Lastly, we are excited to add High Field product offerings through our launch and collaboration with Quad Systems AG," added Mr. Krakiwsky.
"Despite Q1 revenues not meeting our expectations, I continue to believe that 2023 will be a positive and important year for Nanalysis as we digest our acquisitions and progress in creating long-term value from our more resilient business," said Sean Krakiwsky. "We continue to be a leader in benchtop NMR and believe we will continue to hold that position through innovation and improvements to our technologies."
"We expect to provide solid growth with services and products working synergistically together, as high field NMR, MRI, and benchtop NMR all require global service support. We are striving to reduce the lumpiness of our revenue quarter to quarter, and we feel like we are much better positioned to withstand any macroeconomic headwinds that may arise. Out of an abundance of caution, and in light of possible global economic slowdown, the Company has begun a cost reduction program, which will continue until headwinds subside. I have full confidence that the medium and long-term business prospects for our Company remain very attractive, and therefore our cost reductions will have a stay-the-course nature to them, and only be meant to conserve cash in light of potential lower short-term growth numbers," concluded Mr. Krakiwsky.
Investors interested in participating in the live full year call can dial 1-888-664-6392 or 416-764-8659 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/aJQmbEZXR2l or on the investor relations section of the Company's website HERE.
The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-390-0541 or 416-764-8677, conference ID # 648443.
Additionally, the Company has cancelled the Q&A session for its European investors that was scheduled for 8:30am ET tomorrow, Friday, May 26th. The Company intends to resume these sessions for future calls.
About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)
Nanalysis' business is what we term "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020 Nanalysis announced the launch of its100MHz device, the most powerful and most advanced compact NMR device ever brought to market.
Nanalysis' devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.
In 2022 the Company acquired K'(Prime) Technologies Inc. (K'Prime), a North American sales and service company which provides sales services for scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications. K'Prime's service organization provides airport and commercial security installation and maintenance solutions across North America.
Additionally in 2022, the Company acquired a 43% ownership in Quad Systems AG ("Quad Systems"), a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.
Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Nanalysis Scientific Corp.