Burnaby's portable power products developer Xantrex Technology Inc. (TSX:XTX) reported a net loss for its third quarter ending September 30 despite reporting a 54% increase in quarterly revenue.
The company lost $1 million compared with a net profit of $1.5 million in 2006's third quarter, despite quarterly revenue rising to $62.1 million from $40.3 million from higher sales of its renewable, programmable, mobile and portable power products. Revenue from its programmable power division grew mainly as a result of the company's $108 million acquisition of Elgar Electronics Corp., which closed on March 12.
The company said charges relating to consolidation of its manufacturing facilities, the introduction of many new products, higher material costs, a strong Canadian dollar and amortization expenses from the Elgar acquisition all contributed to the company's quarterly loss.
Despite being in the red, Xantrex said it would return to profitability and, with new products being launched, was confident of significant profit growth in subsequent quarters. The company expected to be profitable in 2007's fourth quarter and break even for the year.
Xantrex's share price range during the past week: between $11.50 and $11.75; 52-week high: $13.19; 52-week low: $7.50.