Thermal Energy International records revenue, income decline in Q3

Ottawa cleantech company Thermal Energy International endured a decline in both revenue and income during its most recent third quarter.

Revenue for the period, which ended on Feb. 28, fell to $2.9 million from $4.2 million during the same period a year ago. Its net income dropped to $57,000 from $1.5 million last year.

The drop off in year-over-year revenue was partially a result of a large contract the company recorded in 2013, a press release issued by the company said.

During that time Thermal Energy brought in $1.6 million from the extension of a Greenpower Purchase Agreement with Thurso-based Fortress Specialty Cellulose. It also brought in another $1 million in heat recovery sales to an unnamed “publicly owned hospital.”

Sales of heat recovery systems decreased by 44 per cent to $1.4 million between this year’s third quarter and the one that took place in 2013, the release said.

The company preferred to focus on its rapidly improved performance during the first three quarters of the year when compared to the same period a year earlier.

That nine-month period saw revenue increase to $8.4 million from $6.3 million in the same time frame a year earlier. The net loss decreased to $63,000 from $162,000.

“Our strong performance year-to-date is largely attributable to the investment we made in our sales and distribution capabilities in early fiscal 2013,” said William Crossland, CEO of Thermal Energy, in a statement.

“Thus far in fiscal 2014, we have been successful at cross selling and winning other repeat business from a growing list of multinational customers across a growing number of industries.”

The company’s gross profit, at $4.2 million, was the same as the nine-month period a year earlier. For the third quarter it decreased to $1.4 million from $2.9 million.