EnSync, Inc. (ESNC) Misses Q4 EPS by 2c, Revenues Miss

EnSync, Inc. (NYSE: ESNC) reported Q4 EPS of ($0.07), $0.02 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $1.7 million versus the consensus estimate of $4.57 million.

• Revenue for fiscal 2018 was $11.9 million, compared to $12.5 million in fiscal 2017. The Company experienced construction delays for two power purchase agreement (\"PPA\") projects, and a signing delay on a third, which resulted in the shifting of revenue to the first half of fiscal 2019. For the fiscal year, the Company recognized revenue from 13 PPA projects.
• Significantly better operational performance in fiscal 2018 compared to fiscal 2017. Gross profit improved by more than $3.0 million in fiscal 2018 on approximately the same amount of revenue as compared to fiscal 2017.
• Gross margins improved to 19.9% during fiscal 2018, compared to a negative gross margin of (0.7)% during fiscal 2017. The Company continues to become more efficient and profitable on its PPA construction and sales efforts.
• On September 5, 2018, the Company completed a registered direct offering of 11,334,616 shares of Common Stock at a price of $0.26 per share for net proceeds of $2.7 million.
• The Company has 12 PPA projects in backlog in various stages of execution. Estimated backlog value for PPA projects, components and systems as of the date of this announcement is approximately $16.4 million.

Brad Hansen, CEO of EnSync Energy, commented, "Fiscal 2018 was a very strong operational and development year for EnSync Energy, where we increased gross profits by more than $3.0 million, while at the same time developed innovative products that are opening up new markets poised for rapid growth in the near term. Our strategy to expand our product portfolio beyond our historic Hawaii commercial and industrial market is gaining significant traction. Besides the new commercial systems penetrations in California, Colorado and Ohio, we\'re targeting the Northeast for near-term success. Core to the success we have had, and the tremendous opportunities in front of us, is our DER SuperModuleTM product that is unmatched in the marketplace. The introduction of the leapfrog EnSync Home Energy System, targeted at the very high growth residential energy systems market, at least triples our total available market over the next few years, with the residential energy systems market overtaking the commercial systems market in size by as early as late-2019. Our early success in locking up land lease options in Northern Illinois for 2019 build-out is a further addition to our sources of business. Our exceptional operational execution demonstrated in FY2018 is a great foundation to grow from in these additional regions and market segments."

For earnings history and earnings-related data on EnSync, Inc. (ESNC) click here.

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