Semcan Inc. (STT.V), Tuesday reported a loss in the second quarter, hurt by non-cash charges, despite an increase in revenues.
The supplier of industrial processes and environmental solutions for water remediation, emission control systems and earth decontamination posted net loss of C$0.578 million or C$0.222 per share, compared to net income of C$0.18 million or C$0.011 per share in the same quarter of last year.
The current quarter results included non-cash charges of C$1.87 million. The charges comprised C$0.14 million of stock-based compensation expenses, C$1.3 million of amortization expenses related to acquired backlog and C$0.43 million of other amortization expenses.
Quarterly revenues surged 333.9% to C$24.43 million from C$5.63 million in the year-ago period.
The acquisition of Natson Ltd. in April 2008 resulted in 20.4% decline in gross margins for the second quarter. However, the company attributed the quarterly loss to the accounting treatment for intangible assets related to acquired order backlogs, which resulted in a charge of C$1.3 million.
For the six-month period, the company reported net loss of C$0.173 million or C$0.007 per share, compared to net income of C$0.15 million or C$0.009 per share in the comparable period of last year. Revenues for six months increased 291% to C$34.62 million from C$8.85 million in the previous year.
Looking ahead, John Wilby, Semcan's chief financial officer, said, "The outlook for the balance of the year looks to be on track as the current confirmed order backlog of Semcan Inc. is approximately C$60 million and we continue to quote on larger contracts."
Shares of Semcan closed Monday's regular trading session on the Toronto Stock Exchange at C$0.76.
For comments and feedback: editorial@rttnews.com