Canaan Inc. (CAN), a high-performance computing solutions, and bitcoin company, on Tuesday reported a loss for the third-quarter of 2023, amidst a decline in revenue, mainly due to a fall in demand.
James Jin Cheng, CFO of Canaan, said: "While total revenue beat our guidance, it was reflective of the ongoing market dynamics characterized by soft demand and price concessions in computing power. As anticipated, our mining business was impacted by the suspension of operations in Kazakhstan due to new local policies and counterparty default at a U.S. project."
For the three-month period to September 30, the firm posted a net loss of $80.103 million or 3.13 cents per share, compared with a profit of $6.307 million or 0.24 cents per share, recorded for the same period previous year.
The net loss includes a $53.9 million inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments accrued during the quarter.
Loss per ADS stood at $0.47, compared with last year's profit of $0.04 per ADS.
Excluding items, loss was at $70.4 million, versus a profit of $22.5 million a year ago.
Loss before income tax expenses stood at $100.546 million, compared with a profit of $5.240 million in 2022.
Loss from operations moved up to $112.846 million from $10.511 million a year ago.
Total revenue tumbled to $33.319 million, from last year's $145.545 million.
Products revenue stood at $29.9 million, lesser than previous year's $136.3 million. This is mainly due to lower selling prices, which resulted from overall softening in market demand.
Mining revenue was down at $3.3 million from last year's $9.2 million, as a result of the decline in mining computing power which resulted from the temporary shutdown of around 2.0 Exahash/s computing power in Kazakhstan to ensure legal compliance.
Looking ahead, for the fourth quarter, the company expects total revenue to be around $34 million.
For the fourth-quarter of 2022, Canaan had registered a revenue of $56.8 million.
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