Aqua Bio Technology ASA (Oslo Axess: ABT) today announced the first quarter
2014 financial results. Revenues were in line with the previous two quarters,
but weaker than the record high beginning of last year.
Aqua Bio Technology had revenues of NOK 5.4 million in the first quarter, down
from NOK 7.2 million in the corresponding quarter last year. The EBITDA was NOK
1.2 million, corresponding to an EBITDA margin of 22 per cent. Last year's first
quarter EBITDA was NOK 3.9 million. The net result ended at NOK -0.4 million for
the quarter, against NOK 2.7 million the previous year.
"Revenues from ABT's main product Aquabeautine XL(TM) were in line with
expectations and previously agreed contractual payments. However, we are still
in an early phase of our commercial development, and revenues will therefore
fluctuate from quarter to quarter," said CEO Arvid Lindberg.
Market interest in Dermaclarine(TM) continued to grow in the first quarter, and
the number of cosmetic manufacturers testing the ingredient for potential
inclusion in new skin care products reached a new high. Revenues from
Dermaclarine(TM) also saw a slight increase in the first quarter.
Over the recent months ABT has been growing its global network of distributors,
expanding the Company's reach towards cosmetics manufacturers around the world.
The network is now nearly complete, counting ten distributors with a combined
access to well above 80 per cent of the world's relevant manufacturers of skin
care products.
In the first quarter, ABT's exclusivity partner Restorsea filed a complaint
against the company with a New York court. Restorsea claims a breach of contract
on ABT's part, and has announced a monetary claim against the Company. Aqua Bio
Technology deems the claim substantively as well as procedurally deficient, and
has requested the court to dismiss the case. After learning of the lawsuit, ABT
has initiated a dialogue with Restorsea and has also provided additional
technical documentation. The legal process is currently on hold, pending the
outcome of a supervised mediation.
"A legal process represents uncertainty. The process requires management
attention as well as resources, taking priority over tasks we much rather would
spend our time on," Arvid Lindberg said.
Still, ABT predicts a continued positive development for the Company.
Contractual payments and a growing interest in Dermaclarine(TM) give cause for
optimism. ABT has a strong financial platform, with limited debt and a good cash
position.
For further information, please call Arvid Lindberg, CEO, telephone
+47 9824 5410
Aqua Bio Technology ASA (ABT) develops, produces and markets patented
ingredients and technologies to the international cosmetic and skin care
industry. ABT's ingredients Aquabeautine XL(TM), Dermaclarine(TM) and Beauty
Propelline(TM) are marine solutions with distinctly individual and unique
properties, derived from the hatching fluid of salmon. ABT is listed on the Oslo
Stock Exchange's Axess market.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#1787504]
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