ATW Tech Announces Revenue Growth of 13 Percent for 2018 to Reach $12 Million

ATW Tech (TSXV:ATW) has announced its financial results for the quarter ended December 31, 2018.

As quoted in the press release:

• The Company generated year-over-year revenue growth of $1.3m (12.5%) on its continuing operations for revenues of $12.0m in 2018 compared to $10.7m in 2017.
• On October 31, 2018, the Company completed the sale of the assets of its psychometric assessment division (‘Atman’) for a total selling price of $1.3m, including $1.1m paid cash and $200k payable in equal monthly payments over 3 years.
• The Company increased the gross margin on its continuing operations by 2.7% from 14.7% in 2017 to 17.4% in 2018. The Company also increased its gross margin by 1.9% from 17.1% in Q4-17 to 19.0% in Q4-18.
• For its fourth quarter of 2018, the Company generated a positive EBITDA of $47k for its continuing operations, a second consecutive quarter of positive operating income. For 2018, the Company generated an EBITDA of -$12k compared to -$208k in 2017 for an improvement of $196k.
• On November 6, 2018, the Company signed a letter of intent for the major acquisition of the outstanding shares of Greywolf Entertainment Group (‘Greywolf’) for a purchase price of $2.95m. For the unaudited financial year ended December 31, 2018, Greywolf’s revenues totaled $9.0 million.

“2018 was a busy year that allowed us to refocus our activities and resources on our core payments and interactive communications solutions following the sale of Atman’s business in the fall of 2018. We are proud of the progress achieved, the organic growth generated in 2018 by our various platforms and our improved profitability. 2019 is also very exciting and we expect to add targeted acquisitions to our existing solutions to further fuel this growth”, said President and CEO of ATW Tech, Michel Guay.

Click here to read the full press release.