319% Revenue Growth in 2015 for EnWave Corp
EnWave Corp (TSXV:ENW – $0.70 CAD & OTC:NWVCF – $0.50 USD) had an outstanding fiscal year 2015, ended September 30, 2015. It generated $5.86 million in sales, compared with $1.19 million for the 2014 period, a sharp increase of 390%.
During the past quarters, EnWave signed five commercial royalty-bearing license agreements, it installed three commercial REV dryers and received orders for six smaller units.
Moreover, Moon Cheese, the healthy dried cheese snacks, may very well become EnWave’s first blockbuster product. The snacks are available at more than 20,000 retail stores across North America and in 8,900 Starbucks locations. We wouldn’t be surprised if NutraDried generates $5 to $6 million in sales in fiscal year 2016.
In the coming months several companies, such as Bonduelle, Gay Lea Foods, and Umland, will initiate commercial sales with REV manufactured products, which will obviously have a positive effect on EnWave’s royalty income.
The growing number of operational REV machines will increase EnWave’s royalty income. And with each additional unit installed, the Company edges closer to becoming cash flow and net income positive.
Thanks to a recent private placement, EnWave has about $6 million in the bank. On top of that, it may receive $1.4 million, which is currently tied up as collateral.
EnWave is at the end of its de-risking cycle. It has a proven technology that’s unlike anything in the industry. And there’s an enormous market potential in the food and biopharmaceutical spaces for its REV dryers.
We reiterate our buy recommendation for EnWave Corp. with a price target of $3.21, which is 358% above today’s stock price.
|Download the fiscal year 2015 EnWave Corp. Company Report.|
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