ATW Tech Inc. (the “Company”) (TSX-V: ATW) announces its financial results for its third quarter ended September 30, 2018.
For its third quarter of 2018, the Company announced an increase of its revenues from its continuing operations of $591k or 24% for revenues of $3,059k compared to $2,468k for its comparable quarter of 2017. For its first three quarters of 2018, revenues from its continuing operations totaled $9.1m compared to $7.6m in 2017 for a 20% increase.
For its third quarter of 2018, the Company generated an operating income from its continuing operations of $181k compared to $-296k for its comparable quarter of 2017 for an increase of $477k, as well as cash flows from operating activities of $106k compared to $-76k for its comparable quarter of 2017.
On October 31, 2018, the Company completed the sale of the assets of its Atman division for a total purchase price of $1.3m including $1.1m cash and a balance of sale of $200k payable monthly over 3 years.
On November 6, 2018, the Company announced the signature of a letter of intent for the acquisition of the outstanding shares of Greywolf Entertainment Group (‘Greywolf’) for a purchase price of $2.95m with closing date expected before the end of 2018. For the unaudited financial year ended December 31, 2017, Greywolf’s revenues were $10.0 million.
« In our third quarter of 2018, we have managed to pursue our revenue growth in our continuing operations while controlling our costs. We have also improved our liquidities significantly with the sale of the assets of the Atman division for $1.3m. In addition, we continue to progress with regards to our strategic acquisitions in the financial technologies (‘fintech’), including the acquisition of Greywolf Group Entertainment, and through our positioning in the Canadian and international markets, »
said President and CEO of ATW Tech, Michel Guay.
The above data includes a summary of highlights. For further information, please consult the Corporation’s consolidated financial statement as well as the Management Report for the year ended December 31, 2017.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements that reflect the Company’s current expectation regarding future events. There is a risk that expectations and forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, no history of profitability, future financing, intellectual property and patents, key personnel, competitive marketplace, technology obsolescence, share price volatility and other risks detailed from time to time in the Company’s filings. While ATW Tech anticipates that subsequent events and developments may cause its views to change, ATW Tech specifically disclaims any obligation to update these forward-looking statements, unless obligated to do so by applicable securities laws.
Additional information regarding the Company is available on SEDAR. The TSX Venture Exchange and its Regulatory Services provider (as per meaning assigned to this term in TSX Venture Exchange’s policies) bear no liability as to the relevance or accuracy of this press release.