Industrial technologies group CUI Global (NASDAQ:CUI) has told investors that its hard work in 2016 will bear fruits in the New Year.
CUI said it is continuing to gain traction and momentum and, as a result, expects “greater gas technology sales in 2017”.
“Our optimism for growth in 2017 is founded in the gas industry's growing acceptance of our technology solutions as industry-shifting and aligned with the global transition to natural gas energy from other fossil fuels,” said President and chief executive William Clough.
The bullish outlook for next year came alongside CUI’s third quarter results in which the firm made “steady progress”.
The group secured several new contracts and partnerships in the three months to September, including a US$40mln, 5-year framework agreement with UK-based National Grid (LON:NG.).
While CUI continued to perform well at an operational level, it said the exchange rate movements caused by Brexit hampered its financial progress in the period.
Revenues for the quarter slipped to US$23.3mln versus the US$24.8mln posted last year, while losses widened to US$0.5mln or US$0.02 per share (Q3 2015: Loss of US$59,000 or US$0 per share).
Adjusted EBITDA (underlying earnings) also fell to US$0.2mln from US$1mln a year earlier.
The Oregon-based company added that the US$7.1mln it has in the bank at the end of the period will provide ample capital to achieve our goals and take [CUI] to profitability”.
The power and electromechanical segment unaudited backlog was US$18.2mln as of September 30, while the energy segment unaudited backlog stood at US$13.4mln.
Shares closed at US$4.69 on Wednesday.