Biorem reported that revenues for the third quarter totaled $2,282,000, a 7% decrease over revenues of $2,459,000 recorded during the second quarter of 2014 and a $3,000,000 or 57% decrease over revenues recorded during the third quarter of 2013. The company’s year to date revenues have declined 54% to $6,715,000 compared to $14,476,000 in the same period in the prior year.
Biorem is a clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs).
The net loss for the third quarter and nine months ended were $287,000 and $1,653,000 respectively compared to earnings of $282,000 and $505,000 in 2013.
Peter Bruijns, Biorem President and CEO tried to put a positive spin on the poor performance by stating, “with stronger municipal markets in place and high bidding activity over recent months, the company booked a significant amount of new orders and increased the backlog to $14.8 million.”
However according to an analyst, the hope that the backlog will translate into revenue may not necessarily happen. The company has shown a history of presenting “questionable backlog numbers.” Biorem indicated on April 2, 2014 that the 2013 ending backlog was $9,969,000 however on May 27, 2014 reported without explanation that the 2013 ending backlog was $8,537,000. A decline of $1,432,000.
The analyst indicated that “the calculation for ending backlog should be beginning backlog, plus bookings, less revenue.” Based on the company’s disclosure, “the Q3 ending backlog should have been $14,534,000 versus the reported $14,836,000.”
The stock price for Biorem closed at $0.30 on Friday down from a high of $3.51 in 2005.