TORONTO – Coretec Inc. reported sales of $21.8 million in the second quarter, a decrease of 4.5% compared both to the first quarter and the same period last year. The net loss was $600,000, reversing a gain of $400,000 last year and a decrease of 17% sequentially.
The company recorded an operating profit of $4.3 million, or 19.9% of sales, a decrease of 8.7% compared to first-quarter profit, and down 19.2% from profit year-over-year.
In a statement, president and CEO Paul Langston cited a general industry slowdown and rapid appreciation of the Canadian dollar. He also noted the relocation of the company's manufacturing operations in Lawrence and operational challenges in Toronto related to the product mix and a defective chemical supply.
Coretec said the Lawrence facility shutdown was completed in May, and by the end of July all transferred processes will be fully operational. The firm plans to install new equipment in the current quarter to improve yields and capacity.