BALLERUP, Denmark, September 28, 2019 – Shares of LiqTech International Inc. (NASDAQ: LIQT) gained 0.90% to $7.88. The stock grabbed the investor’s attention and traded 101.325K shares as compared to its average daily volume of 212.33K shares. The stock’s institutional ownership stands at 39.00%.
LiqTech International, Inc. (LIQT) reported net sales of $7.40M for the three months ended March 31, 2019, contrast to $2.40M for the same period in 2018, representing a boost of $5.00M, or 210%.
Gross profit for the three months ended March 31, 2019 was $1.50M contrast to $(60.0K) for the same period in 2018. The improved gross profit reflects increased sales of higher-margin marine products as well as positive operating leverage from increased plant utilization. We expect gross margins to further improve as marine products become a larger part of the sales mix and drive further operating leverage.
Total operating expenses for the three months ended March 31, 2019 were $1.50M, a boost of 9% contrast to the prior-year quarter. Selling expenses increased $74.0K, or 18%, contrast to the same period of 2018 because of the hiring of additional sales employees to accelerate market penetration. General and administrative expenses increased $8.0K, or 1%, contrast to the prior-year quarter. Research and development expenses increased $34.0K or 20%, contrast to the same period of last year because of focused investments in new technologies that will service large addressable markets.
Net income for the three months ended March 31, 2019 was $17.0K, or $0.0 per basic and diluted share, as compared to a net loss of $1.40M, or $(0.03) per basic and diluted share for the same period in 2018. The improvement in profitability was attributable to the noteworthy increase in volume for sales of marine scrubber systems and positive operating leverage on fixed costs that elevated gross margin.
Cash on hand and restricted cash for the period ended March 31, 2019 was $2.60M contrast to $3.80M for the year ended December 31, 2018. The decline in cash and cash on hand was because of down payments for new heat treatment furnaces for deliver later this year, which will increase plant capacity to meet increasing demand for our scrubber systems.
LIQT has a market value of $158.39M while its EPS was booked as $-0.10 in the last 12 months. The stock has 20.10M shares outstanding. In the profitability analysis, the company has gross profit margin of 17.50% while net profit margin was -8.00%. Beta value of the company was 1.07; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.70.