Q4 Revenue of $2.1M exceeds top end of guidance range
Full year 2023 revenue more than doubles from 2022 level
TORONTO, Feb. 26, 2024 (GLOBE NEWSWIRE) — Clear Blue Technologies International Inc. (“Clear Blue” or the “Company”) (TSXV: CBLU) (FRANKFURT: 0YA) (OTCQB: CBUTF), announces a Q4 2023 corporate update, including preliminary Q4 financial results.
Q4 2023 Update – Telecom segment strength drove Q4 outperformance
- Revenue is expected to be $2.1M (up $1.922M from $178k in Q4 2022 and almost equal to Q3 2023, which was $2.2M), exceeding the previously announced Q4 guidance range of $1.8M – $2M. Q4 continued to exhibit very strong gross margins in line with previous periods (37% in Q3 2023).
- Revenue was distributed across all business units:
- Nano-Grid systems is expected to be approximately 25% of revenue for 2023. Global investments in satellite technology to bring satellite as a viable alternative to ground-based microwave and cellular systems are driving community internet services and rural deployments. Solar Green energy funds are also moving into the sector to fund solar deployments for telecom, bringing fresh funding to drive projects.
- Illumient systems are expected to contribute approximately 29% of for 2023. Solar Lighting growth in North America is expected to be driven by recent legislation in the U.S. and Canada. Customers’ increasing requirements for resiliency against extreme weather are also helping drive growth in this segment. Illumient provides the benefit of having the lights on when the grid goes down while eliminating pole to pole cabling risks.
- Esite-Micro systems is expected to represent approximately 46% for 2023. Esite services existing installations of traditional larger cell towers. The majority of these have historically been grid or grid and diesel powered. The cost of diesel is up 300% or more since 2021, and the grid is becoming less reliable. Not only is the cost of diesel driving adoption but also the greening of telecom sites is a major focus across the industry. These sites are being converted to hybrid powered systems, including solar. As a result, Clear Blue is seeing significant customer interest in investments and programs in upgrading existing telecom sites. These investments will convert grid and diesel dependence towards solar energy.
- In the quarter the Company shipped 616 power control devices across 14 orders.
- Clear Blue converted a previously announced Parallel Wireless project to a full Esite-Micro solution, which shipped in Q4. The impact on Q4 revenue is expected to be $1.1M.
- 2024 revenue is expected to be significantly greater than 2023 and 2022 revenue which were $5.4M and $2.6M respectively. With typical business seasonality, strong sales orders in the first half of the year leads to stronger revenue in the second half of the year. Clear Blue’s business growth has accelerated following a challenging 2022 and 2023. This is expected to lead to increased order intake in 2024, followed by revenue growth.
- Clear Blue’s funnel indicates significant growth going into 2024. All product lines and verticals are expected to exhibit strong growth in both sales and revenue. Each of Nano, Micro and Illumient will deliver approximately one third of the revenue with Pico-Grid beginning to deliver as the sales Go To Market for this product ramps up. In addition to our base plan, the Company is tracking a few very large seven figure orders which could close by mid year. While there can be no assurance on timing or any specific order closing, they are indicative of the large investments being made by industry and the opportunity going forward for Clear Blue.
- The cash position at the end of the quarter was $0.5M, approximately $2M of accounts receivables and $2.0M in non-dilutive capital from across government programs all expected in early 2024.
“The fourth quarter of 2023 saw the Company’s quarterly performance continue on its pre-COVID trajectory even as significant costs have been removed from the business,” said Miriam Tuerk, CEO of Clear Blue. “2023 saw a return to growth, and we expect to see continued demand for our Illumient, Nano-Grid and Esite products throughout 2024. We believe our robust and growing pipeline is providing us increased visibility into order intake for 2024, driven by recent customer signals of market scale for our technology. These opportunities cumulatively represent an order pipeline in the low hundreds of millions of dollars, providing Clear Blue room for years of strong revenue growth.”
Outlook
Clear Blue has a strong 2024 sales funnel for each product. All products are expected to achieve meaningful growth with revenue split fairly evenly across each unit.
Potential Illumient order flow includes another interstate highway interchange project, multiple indigenous first nations projects, and follow on roadway projects with an existing city in the U.S. Northeast.
Nano-Grid was materially impacted by funding delays on rural telecom orders in 2021 and 2022. Clear Blue now has multiple customers in late stages of financings and expects to see growth to return to that business throughout 2024. The Company also expects to see a ramp in satellite / Wi-Fi projects.
With the launch of Clear Blue’s Smart Off-Grid software service for Esite-Micro, the Company looks forward to providing continued reliable power for large telecom systems in 2024 and beyond. In addition to the previously announced WATT Renewable order, several additional projects are expected in the first half of 2024.
Lastly, 2024 is the first full year of sales of our Pico-Grid product. As sales ramp up, it is expected to be a major revenue driver going into 2025.
For more information, contact:
Miriam Tuerk, Co-Founder and CEO
+1 416 433 3952
investors@clearbluetechnologies.com
www.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital
+1 437 836 9669
Nik@SophicCapital.com
About Clear Blue Technologies International
Clear Blue Technologies International, the Smart Off-Grid™ company, was founded on a vision of delivering clean, managed, “wireless power” to meet the global need for reliable, low-cost, solar and hybrid power for lighting, telecom, security, Internet of Things devices, and other mission-critical systems. Today, Clear Blue has thousands of systems under management across 37 countries, including the U.S. and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)
Legal Disclaimer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement
This press release contains certain “forward-looking information” and/or “forward-looking statements” within the meaning of applicable securities laws. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Clear Blue’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Clear Blue’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information concerning financial results and future upcoming contracts.
By identifying such information and statements in this manner, Clear Blue is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Clear Blue to be materially different from those expressed or implied by such information and statements.
An investment in securities of Clear Blue is speculative and subject to several risks including, without limitation, the risks discussed under the heading “Risk Factors” in Clear Blue’s listing application dated July 12, 2018. Although Clear Blue has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, Clear Blue has made certain assumptions. Although Clear Blue believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release. All subsequent written and oral forward- looking information and statements attributable to Clear Blue or persons acting on its behalf is expressly qualified in its entirety by this notice.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release. Such securities have not been, and will not be, registered under the U.S. Securities Act, or any state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or benefit of persons in the United States or “U.S. Persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
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