Cleantech Innovations, Inc. (CTEK) Tops Q4 EPS by 17c, Revenues Miss

Cleantech Innovations, Inc. (NYSE: CTEK) reported Q4 EPS of $0.33, $0.17 better than the analyst estimate of $0.16. Revenue for the quarter came in at $18.57 million versus the consensus estimate of $19.01 million.

• Revenues for the fourth quarter were $18.6 million, compared to $18.7 million for the same period of 2017. Revenues for the full year were $71.1 million compared to $71.6 million for the same period of 2017.
• GAAP net income for the fourth quarter was $1.3 million, or $0.14 per basic and $0.13 per diluted share compared to a net loss of $(1.6) million, or $(0.17) per basic and diluted share for the same period of 2017. GAAP net income for the full year was $1.9 million, or $0.20 per basic and $0.19 per diluted share compared to a net loss of $(0.4) million, or $(0.05) per basic and diluted share for the same period of 2017.
• Non-GAAP adjusted EBITDA, after adding back stock-based compensation and change in valuation of earnout, was $3.7 million in the fourth quarter of 2018, compared to $2.5 million for the same period in 2017. Non-GAAP adjusted EBITDA, after adding back stock-based compensation, change in valuation of earnout and non-recurring charges related to our debt refinancing and the departure of a senior executive was $8.6 million in the full year of 2018, compared to $7.8 million for the same period in 2017 after adding back stock-based compensation and change in valuation of earnout.
• Non-GAAP adjusted earnings per share for the fourth quarter 2018 was $0.34 per basic and $0.33 per diluted share, compared to $0.21 per basic and $0.20 per diluted share for the same period of 2017. Non-GAAP adjusted earnings per share for the full year 2018 was $0.72 per basic and $0.70 per diluted share, compared to $0.64 per basic and $0.60 per diluted share for the same period of 2017.
• Recent Operational Highlights Include:
• Sold Managed Print Service division on March 20, 2019 for $30 million allowing CynergisTek to become pure play cybersecurity company
• Accelerated Security revenue with growth of 20 percent year over year
• Created three new strategic partnerships with software vendors focused on generating new service offerings and revenue growth

“2018 was another successful year for CynergisTek where we strived to be the trusted partner in healthcare security, privacy, and compliance,” said Mac McMillan, President and CEO of CynergisTek. “We attribute the growth in cybersecurity services to the increasing security threat landscape and incidents occurring in healthcare. The significant growth in professional services is due to the cybersecurity workforce shortage that exists across all industries but even more so in healthcare. 2019 we will continue to see the market demand increase for these types of services, as healthcare cannot find and retain the necessary resources to keep up with increased security threats. Our growth was only possible because of the dedication of our staff from the back of the house to the front of the house.”

For earnings history and earnings-related data on Cleantech Innovations, Inc. (CTEK) click here.

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