As an Ottawa photonics manufacturer drops deeper into the red, its management is indicating that the firm’s future is at risk without financing to bolster its production capacity.
Enablence Technologies (TSX-V:ENA), a Kanata-based company formed in 2006, develops technology to both transmit and receive optical signals. The majority of its customers are in Asia.
The firm reported its second quarter earnings this week. Revenues were $1.2 million for the three-month period ending Dec. 31, 2017, up roughly $300,000 from the year before. (All figures in USD.)
But Enablence’s net losses deepened to $2.7 million on the quarter, compared to $2 million a year ago. Accumulated quarters of losses have brought Enablence’s deficit to a total $127.7 million.
In financial filings, the firm’s management says there’s still significant demand for its patented optical tech, but it lacks the production capacity to meet market need. Two years ago Enablence took C$4.6 million in equity financing from a strategic partner, but says it will need to raise more – and soon.
“In the event Enablence is unable to raise the additional financing, the company will have to look at other alternatives including the possibility of ceasing operations,” the firm wrote in its MD&A filed Thursday.
At its peak – exactly 10 years ago on Thursday – shares of Enablence traded at roughly C$60 on the TSX Venture Exchange. On Friday morning, shares were priced at roughly four cents.