PyroGenesis releases Q1 2019 financial statement

PyroGenesis, a Montreal-based 3D printing metal powder specialist and plasma torch manufacturer, has released its Q1 2019 financial results. The total revenue of the company in Q1 2019 stands at $736,443, a 64% decline compared to the same period in 2018 which was $2 million.

Explaining the downturn P. Peter Pascali, President and CEO of PyroGenesis, said, “I may be repeating myself, but it is imperative that I remind readers the importance of putting Q1 2019 results in the context of previous strategic decisions made in 2018 which are still impacting results.”

Expenditures and net loss

Pyrogenesis reports the cost of sales and services together. The company’ financial report for Q1 2019, shows a 52.44% decline in cost of sales and services from $1.4 million to $644,285 in Q1 2019.

Revenue at PyroGenesis is primarily generated from the sale of plasma torches and PUREVAP, a proprietary method of manufacturing metallurgical grade silicon from quartz, a mineral composed of silicon and oxygen. A significant proportion of the revenues also came from services related to the Plasma Arc Waste Destruction Systems (PAWDS) sold to the U.S Navy.

With an eye on long-term strategy, PyroGenesis has increased spending on research and development from $52,498 in Q1 2018 to $95,774 in Q1 2019, an increase of 82%. Other expenses include selling, general and administrative expenditures of $1.3 million in Q1 2019 compared $1.4 in the same period in 2018.

Overall, PyroGenesis’ net loss and comprehensive loss were $878,923 in Q1 2019, compared to $1 million in Q1 2018.

Way ahead

Moving forward, PyroGenesis has emphasized the importance of strategic partnerships in 2019, which includes strengthening relationships with the U.S Navy and Aubert & Duval, an additive manufacturing metal powder supplier.

Furthermore, this year PyroGenesis’ Board of Directors also approved the necessary steps for establishing PyroGenesis Additive, a spin-off company that will produce metal powders for the 3D printing industry.

Pascali concluded, “Recent results have been significantly affected by management’s decision in 2018 to pursue strategic partnerships at the expense of revenues […] As I have said in the past, 2018 was the year in which the Company successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialization, and we are benefiting from these efforts. Again, we believe that these financials should be viewed in this context.”

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