Lower Margin Product Sales Negatively Impact Ttech’s Net Profits, Revenues However Up 51% For Quarter Ended September 30, 2019
Chief Executive Officer for tTech Limited, Christopher Reckord, is reporting revenues of $105.2 million, for the quarter ended September 30, 2019, representing an increase of 51.1% above the corresponding period in 2018, which recorded $69.6 million.
In his report of shareholders contained in the company’s recently released unaudited results, he noted that expenses for the period was up 54% at $98.5 million, over the $64.1 million reported for 2018.
Net Profit or Total Comprehensive Income for the period was $11.3 million, representing a decrease of 7.2% over the $12.2M for corresponding period in 2018.
This decrease in profits he said was attributed to the increase in lower margin product sales for the period, versus the high margin services sales focused revenue in the comparative period last year.
Commenting further he noted that the balance sheet continues to be strong, equipping them to take advantage of future opportunities.
tTech recorded growth in assets of 10.6% over the 2018 period, this while maintaining its ability to meet short-term debt obligations with a current ratio of 4.3:1, he reported.
Revenue increase in this quarter, he said was related to the continuation of major network upgrade projects where tTech, in addition to providing traditional services, also procured and provided the equipment required to execute on these projects.
Important monthly recurring revenue from Managed IT Services continued to grow in Q3 with the addition of new customers using these services.
Cost of sales increases were directly attributed to the sales of network equipment provided for the upgrade projects.
tTech Limited, closed the quarter ended September 30, 2019, with earnings per share of 11 cents and 26 cents on a year to date basis.