20th Mar 2015 09:22
LONDON (Alliance News) - MyCelx Technologies Corp Friday said it swung to a pretax loss in 2014 as revenue was hit by reduced activity in the oil and gas sector due to the fall in oil prices combined with increased costs.
The manufacturer of industrial wastewater filtration products to remove oil from water and air swung to a USD5.5 million pretax loss for the year ended December 31, compared to a USD1.3 million profit in 2013 as revenue fell and costs rose.
Revenue for the year fell to USD13.6 million from USD21.4 million, whilst selling, general and administrative costs rose to USD11.5 million from USD9.9 million and depreciation and amortization costs increased to USD519,000 from USD340,000, partially offset by a small fall in research and development costs to USD443,000 from USD479,000.
The 37% decline in revenue was due to customer operational interruptions and project delays. Revenue from equipment sales and leases fell by 35% in 2014 whilst recurring revenue from consumable filtration media and service fell by 37% due to operational disruptions at one large customer and a decrease in fourth quarter media sales to legacy customers, said MyCelx.
The company's investment in warehousing infrastructure in Houston and Dubai and equipment resulted in an increase in selling, general and administrative expenses.
At the end of the period, MyCelx reported a cash balance USD11.8 million, stronger than the USD4.2 million balance at the end of 2013.
MyCelx said 2015 has started well, but said its pipeline for capital equipment sales are slow due to the oil price volatility and said predicting revenue remains difficult.
The company is also aiming at reducing operating expenses by 10% in 2015, but said engineering and business development will remain protected from further budget cuts.
"At its core, the company is a technology company. As such, the company will continue to innovate and commercialize next generation technology to achieve treatment results not currently found in the market today," said Chairman Tim Eggar.
MyCelx shares were untraded on Friday morning, last trading at 130.00 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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