NTIC Q3 Revenue Hits Record $24.2M, But Margins Crater 477 bps to Net Loss
NTIC sits 18% above its 52-week low of $7.14.
Summary
NTIC posted record Q3 revenue of $24.2M, up 12.6% YoY, but gross margin collapsed 477 bps to 33.6%, swinging the company to a net loss of $263K or ($0.03) per share. Raw material costs and competitive pricing in Natur-Tec drove the compression, though management expects Q4 improvement from pricing and procurement actions. The results follow an April dividend suspension and a recent covenant breach on its credit line, since waived, underscoring balance-sheet strain. A bright spot: ZERUST oil & gas sales surged 72.3% to a record $2.22M, and joint venture income rose 12.2% to $2.55M. The planned sale of its Beachwood facility for $1.15M adds a small liquidity tailwind.
At the time of this announcement, NTIC was trading at $8.40 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $81.4M. The 52-week trading range was $7.14 to $10.03. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.