Clean Diesel Technologies Now Sees Lower End Of FY Revenue Forecast Range

(RTTNews) - Clean Diesel Technologies, Inc. or CDTi (CDTI), an advanced emission control technology, Monday said it now expects full year 2016 revenue to be at the lower end of guided range of between $39 million and $43 million.

On average, three analysts polled by Thomson Reuters expect revenues of $40.43 million for the year. Analysts' estimates typically exclude special items.

Tracy Kern, CDTi's CFO, stated, "We believe DuraFit will continue to partially offset the decline in legacy retrofit revenue; however, we now expect its full year revenue contribution will approximate $7 million due in part to supply chain issues related to the closure of our Markham facility in December 2015. We expect this to be positively offset by a greater than anticipated revenue ramp from Panasonic related to shipments of our synergized-platinum group metal (SPGM) diesel oxidation catalysts (DOCs)."

In addition, based on the transition costs related to the closure of Markham facility, the company said it expects gross margin to be between 25% and 27%.

Based on these assumptions and cost reductions undertaken in 2015 and 2016, the company now expects to be breakeven on an income from continuing operations basis by the first quarter of 2017.

In its second quarter of fiscal 2016, net income was $1.3 million, or $0.35 per share, and included an accounting gain of $2.8 million related to the conversion feature of the Kanis S.A. debt. This compares to a net loss of $2.4 million, or $0.81 per share in the second quarter of 2015.

Analysts expected loss of $0.47 per share for the quarter.

Total revenue was $8.4 million, compared to $9.9 million last year. Analysts expected revenues of $9.19 million.

In pre-market activity, the shares were gaining 1.54 percent at $3.95.