12th Sep 2014 07:59
LONDON (Alliance News) - Mycelx Technologies Corp Friday expressed optimism for its future due to its growing pipeline, despite swinging to a pretax loss in the first half of the year.
The clean water technology and engineering company posted a pretax loss of USD2.2 million for the six months to June 30, compared with a profit of USD333,000 a year earlier, as revenue declined to USD7.5 million, from USD9.4 million, and selling, general and administrative costs rose.
Mycelx said revenue had been hit by end user construction delays, pushing recurring sales to later in 2014 and 2015, and lower recurring revenues from consumable filtration media and services due to a one-time waste water treatment project in the previous year that did not recur.
The rise in operating expenses was primarily caused by investments in human resources, infrastructure and leased equipment.
The company said that whilst it does not have control over its customer's time lines and slippage is "presently a challenge", it expects this to ease as its installation base rises and recurring media sales come to fruition.
Mycelx said it was expanding its 'fast-to-market' lease equipment fleet, having added USD2.0 million in equipment in the first half, and it expects to add a further USD2.5 million in the second half of the year.
Despite seeing weaker revenue in the first half, it expects a "significant" increase in revenues in the second half and in 2014.
Mycelx said the total size of its pipeline has increased to USD114 million, from USD44 million last year, with the average size of a pipeline project more than doubling to USD2.5 million, from USD1.2 million.
"Given the increasing scale and number of our prospective projects, we look forward to the future with increasing optimism; however, forecasting in which period revenue may fall is a challenge for our business in the shorter term," said Chief Executive Connie Mixon in a statement.
Still, Mycelx Technologies was untraded early Friday. It last traded at 355.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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