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CUI Global 3Q18 results ?3
09:31 07-Nov-18
The CUI Global call has just concluded. The most important
comment for me was that management is working on non-dilutive
options, including a building sale, to maintain financing. It was
also noted that tariffs on electronics pushed some revenue
recognition forward, and will affect many products, though not the
ICE one produced in Toronto.
Beyond that, Italy is still not moving forward as installations
are waiting on a new governmental authority. Color for U.K.
adoption was that the pilot program should conclude in late 2019.
Then a decision on whether or not to start deploying 20%
Biomethane will be made with roll-out of 2000 units aiming for
2020. Deployment could eventually scale to 45K units.
One new development that was alluded to was use of GasPT in Siemens systems. Management also expects to be able to give a meaningful update on sales progress in China next quarter, where gas monitoring is expected to proceed faster than elsewhere in the world. If even a significant portion of these opportunities pan out, CUI should experience a 2019 similar to 2015 for ERII. In the meantime, the wait continues, hopefully without dilution.
CUI Global has released its third quarter results:
- a loss of 5 cents per share beats by 2 cents
- on revenue of $24.7M, which beats by $600K
These beats would be inline with estimates by the old (ASC 605) accounting standard and it's uncertain how much effort analysts have been putting in. The company has also formed a collaboration with Mitsubishi to provide more advanced gas monitoring units early next year. While I find the promises of future potential to be credible, they are not what investors need right now. Unless CUI Global can bring in a substantial portion of its $12M accounts receivable balance this quarter, it will need to raise cash. I will listen to the conference call at 8:30 and report on that.