Aqua Bio Technology: Stable revenues, results affected by U.S. lawsuit
by Hans Christian Leren | Aug 17, 2016
Aqua Bio Technology ASA posted strong revenues in the second quarter 2016, while
the Company's financial results were adversely affected by non-recurring costs
related to a lawsuit against ABT in the United States. A federal court in New
York has stayed the case against the Company, and dismissed Access Business
Group International LLC's demands for a Temporary Restraining Order as well as
the demands for a Preliminary Injunction.
ABT had revenues of NOK 12.5 million in the second quarter, up from NOK 9.0
million in the corresponding quarter of last year. The first two quarters of
2016 saw the highest revenues in company history.
EBITDA for the second quarter ended at NOK 0.6 million, down from last year's
NOK 4.7 million. Earnings before taxes came in at NOK -0.9 million against NOK
3.2 million last year. The reduced profits were caused by costs related to the
lawsuit.
For the first half of 2016, ABT posted revenues of NOK 25.1 million, up from NOK
18.1 million last year. EBITDA ended at NOK 6.7 million against NOK 10.0 million
for the first six months of 2015. Earnings before taxes for the first half were
NOK 3.7 million against NOK 7.3 million last year.
The legal complaint against ABT was filed by a U.S. customer claiming breach of
contract. The demand for action against ABT was in two instances rejected by the
court, which referred the case to arbitration in London, as stipulated in the
original contract. Arbitration has been initiated. The contract between the
parties expired on 1 January 2016.
Aqua Bio Technology is currently preparing the launch of several new ingredients
for skin care products based on third party technology. Safety and efficacy
studies of the new products are expected to be completed in the third quarter,
followed by market launches in the fourth quarter. ABT expects to see revenues
from the new products in 2017.
For further information, please call Arvid Lindberg, CEO, telephone
+47 9824 5410
Aqua Bio Technology (ABT) has launched several cosmetic ingredients used in skin
care products globally. Skin care is the fastest growing segment in the
cosmetics industry, where ABT's ingredients have established a foothold. In
addition to ingredients from its own technology, ABT also commercializes novel
technologies/ingredients for partners, for use in skin care products. Aqua Bio
Technology is listed on the Axess market of the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#2035591]
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