Oxnard-based Clean Diesel Technologies reported a drop in first quarter revenue year-over-year and an increase in its net loss to $3.1 million.
The emissions control technology company launched new private label programs in North America and removed some product offerings. Revenues fell 15 percent, from $9.7 million in the first quarter of 2016, to $8.2 million in 2017, primarily among its coated catalyst products.
“We are making significant progress in transitioning CDTi to an advanced materials and specialty coating business model, the completion of which we expect by the end of 2017,” CEO Matthew Beale said in a news release, including supply agreements with manufacturers in China.
“While we will begin with less revenue than under our previous model, our improved margins and streamlined infrastructure support a significantly lower break even point — a very solid platform to support the ramp up of our new powder business in 2018 and 2019.”
At $3.8 million, operating expenses also declined, from around $6 million for the previous first quarter. The 36 percent drop is a result of cost-cutting initiatives for Clean Diesel, according to the May 15 news release, and the company expects the trend to continue throughout the year.
The company had $2.4 million in cash on hand March 31, with $12.7 million in total liabilities.
“As part of our private label agreements, our first shipments reflect a lower margin due to short-term introductory pricing,” said Chief Financial Officer Tracy Kern. “However, as volumes ramp up through 2017, we expect margins to recover.”
Clean Diesel expects to break even on net income in the second half of 2017, with full-year revenues between $32 million and $35 million. Share prices ended the day up 3.7 percent at $3.39.
• Contact Marissa Nall at [email protected]