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December 1, 2016 – CapitalCube
NanoTech Entertainment, Inc. reports financial results for the quarter ended September 30, 2016.
We analyze the earnings along side the following peers of NanoTech Entertainment, Inc. – Brady Corporation Class A, International Game Technology PLC and Prism Technologies Group, Inc. (BRC-US, IGT-US and PRZM-US) that have also reported for this period.
Highlights
Summary numbers: Revenues of USD 3.86 million, Net Earnings of USD -0.04 million.
Gross margins widened from -1.76% to 3.81% compared to the same period last year, operating (EBITDA) margins now -0.02% from -12.77%.
Year-on-year change in operating cash flow of 327.52% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
Earnings growth from operating margin improvements as well as one-time items.
The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:
2016-09-30 2016-06-30 2016-03-31 2015-12-31 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 3.86 4.26 4.8 4.62 3.84
Revenue Growth (%YOY) 0.49 16.75 82.07 98.83 50.13
Earnings (mil) -0.04 -0.56 0.26 0.15 -0.53
Earnings Growth (%YOY) 93.14 -224.26 -22.81 -81.88 -271.42
Net Margin (%) -0.93 -13.06 5.35 3.26 -13.69
EPS -0 -0.01 0 0 -0.01
Return on Equity (%) -2.86 -34.95 14.53 9.02 -33.85
Return on Assets (%) -2.21 -26.18 10.26 6.37 -25.39
Access our Ratings and Scores for NanoTech Entertainment, Inc.
Market Share Versus Profits
NTEK-US‘s change in revenue this period compared to the same period last year of 0.49% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that NTEK-US is holding onto its market share. Also, for comparison purposes, revenues changed by -9.34% and earnings by 93.52% compared to the immediate last period.
Quadrant label definitions. Hover to know more
Leader, Earnings Focus, Laggard, Revenues Focus
Earnings Growth Analysis
The company’s earnings growth was influenced by year-on-year improvement in gross margins from -1.76% to 3.81% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -12.77% to -0.02% compared to the same period last year. For comparison, gross margins were -7.15% and EBITDA margins were -12.23% in the last reporting period.
Quadrant label definitions. Hover to know more
Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost
Gross Margin Trend
Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet.
NTEK-US‘s improvement in gross margin has been accompanied by an improvement in its balance sheet as well. This suggests that gross margin improvements are likely from operating decisions and not accounting gimmicks. Its working capital days have declined to 102.94 days from 128.81 days for the same period last year.
Quadrant label definitions. Hover to know more
Customer Financed, Cash Starved, Supplier Financed, Cash Rich
Cash Versus Earnings – Sustainable Performance?
NTEK-US‘s change in operating cash flow of 327.52% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.
Quadrant label definitions. Hover to know more
Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings
Margins
The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -13.69% to -0.93% and (2) one-time items. The company’s pretax margins are now -0.93% compared to -13.69% for the same period last year.
Quadrant label definitions. Hover to know more
Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
Access our Ratings and Scores for NanoTech Entertainment, Inc.
December 1, 2016 – CapitalCube
NanoTech Entertainment, Inc. reports financial results for the quarter ended September 30, 2016.
We analyze the earnings along side the following peers of NanoTech Entertainment, Inc. – Brady Corporation Class A, International Game Technology PLC and Prism Technologies Group, Inc. (BRC-US, IGT-US and PRZM-US) that have also reported for this period.
Highlights
Summary numbers: Revenues of USD 3.86 million, Net Earnings of USD -0.04 million.
Gross margins widened from -1.76% to 3.81% compared to the same period last year, operating (EBITDA) margins now -0.02% from -12.77%.
Year-on-year change in operating cash flow of 327.52% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
Earnings growth from operating margin improvements as well as one-time items.
The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:
2016-09-30 2016-06-30 2016-03-31 2015-12-31 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 3.86 4.26 4.8 4.62 3.84
Revenue Growth (%YOY) 0.49 16.75 82.07 98.83 50.13
Earnings (mil) -0.04 -0.56 0.26 0.15 -0.53
Earnings Growth (%YOY) 93.14 -224.26 -22.81 -81.88 -271.42
Net Margin (%) -0.93 -13.06 5.35 3.26 -13.69
EPS -0 -0.01 0 0 -0.01
Return on Equity (%) -2.86 -34.95 14.53 9.02 -33.85
Return on Assets (%) -2.21 -26.18 10.26 6.37 -25.39
Access our Ratings and Scores for NanoTech Entertainment, Inc.
Market Share Versus Profits
NTEK-US‘s change in revenue this period compared to the same period last year of 0.49% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that NTEK-US is holding onto its market share. Also, for comparison purposes, revenues changed by -9.34% and earnings by 93.52% compared to the immediate last period.
Quadrant label definitions. Hover to know more
Leader, Earnings Focus, Laggard, Revenues Focus
Earnings Growth Analysis
The company’s earnings growth was influenced by year-on-year improvement in gross margins from -1.76% to 3.81% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -12.77% to -0.02% compared to the same period last year. For comparison, gross margins were -7.15% and EBITDA margins were -12.23% in the last reporting period.
Quadrant label definitions. Hover to know more
Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost
Gross Margin Trend
Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet.
NTEK-US‘s improvement in gross margin has been accompanied by an improvement in its balance sheet as well. This suggests that gross margin improvements are likely from operating decisions and not accounting gimmicks. Its working capital days have declined to 102.94 days from 128.81 days for the same period last year.
Quadrant label definitions. Hover to know more
Customer Financed, Cash Starved, Supplier Financed, Cash Rich
Cash Versus Earnings – Sustainable Performance?
NTEK-US‘s change in operating cash flow of 327.52% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.
Quadrant label definitions. Hover to know more
Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings
Margins
The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -13.69% to -0.93% and (2) one-time items. The company’s pretax margins are now -0.93% compared to -13.69% for the same period last year.
Quadrant label definitions. Hover to know more
Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
Access our Ratings and Scores for NanoTech Entertainment, Inc.
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