Boston, MA 05/16/2014 (wallstreetpr) – The $41 million market capped energy storage and power electronics manufacturer ZBB Energy Corporation (NYSEMKT:ZBB) reported a strong gain in revenue in its fiscal 3Q2014. The top-line gained support from license fees that helped to offset the decline in product sales.
The company is looking to China for future growth as transformations in the countries energy sector support demand for storage solutions. Overall, the company projects a positive future as it intends to improve its sale and marketing efforts while reducing costs to support profit growth. The company’s penetration into China is presently through a joint venture through which it expects to achieve more in the future going by early indications.
The latest quarter confirmed the improvement that the company is having in its balance sheet.
3Q2014 in digits
ZBB Energy Corporation (NYSEMKT:ZBB) reported revenue of $4.57 million in 3Q2014. That compared with revenue of $2.1 million in the same quarter a year earlier. The quarter benefited from licensing fee that the company generated from its partnership with Lotte Chemical. The bigger gain from licensing revenue offset the drop in product sales. As a result, although the quarter was challenging by most measures especially considering the harsh winter weather, ZBB Energy Corporation (NYSEMKT:ZBB) managed a net loss of $67,945 or breakeven per share. That compared with $2.8 million or $0.18 per share in 3Q2013.
According to CEO Eric Apfelbach, the company undertook various strategic developments in 3Q that included initiation of a partnership with Lotte and secondary offering, all of which had a positive impact on the balance sheet, thereby empowering the company to face the future with optimism. The company intends chase after sales opportunities especially after noting revenue decline in product sales in the latest quarter.
Towards achieving higher product sales revenue ZBB Energy Corporation (NYSEMKT:ZBB), intends to boost its sales and technical staff. The CEO cited the hiring of a sales manager for Hawaii was one of the steps that the company is taking in preparation for an all out campaign to improve performance.
In addition to pursuing multiple sales opportunities, the company intends to identify more cost-saving opportunities to put the company on the path to profitability.
China on the radar
ZBB Energy Corporation (NYSEMKT:ZBB) is circling China as an important market for its energy storage solutions. The country is undertaking various transformative measures to reduce carbon emissions and improve the grid. As such, demand for energy storage technologies is high in the country and ZBB looks at that as a big market opportunity towards growth.