Strong Growth in First Quarter Sets Path for Best Year Ever in EnWave Corp’s History
EnWave Corporation (CA:ENW – $1.80 & US:NWVCF – $1.35 & GER:E4U – €1.17) offers industrial-scale dehydration technology for commercial applications in the food, cannabis, and pharmaceutical spaces. The Company’s Radiant Energy Vacuum (“REV™”) platforms are becoming the new global dehydration standard, as they are faster and cheaper than freeze drying, and have better end product quality than both air drying and spray drying.
In the first quarter of 2019, which ended December 31, 2018 the Company reached revenues of $7,806,000 compared to $4,519,000 in the same period in fiscal 2018, an increase of $3,287,000 or 73%. Continued strong sales of Moon Cheese, the crunchy cheese snacks produced by EnWave’s 100% owned subsidiary NutraDried, contributed to this outstanding performance.
EnWave reported a net loss of $15,000 in the first quarter of fiscal 2019, a significant reduction compared to the loss of $397,000 in the first quarter of fiscal 2018.
While 2018 was a breakthrough year in many ways for EnWave, it is clear that the pace of growth will continue to accelerate into 2019. We expect a strong surge in NutraDried sales to at least $25 million, a boost in royalties, and some significant machine purchase orders.
The Company anticipates several long-term projects to convert to commercial licenses as well as additional REV machine capacity to be ordered by existing partners in 2019.
A first order on which the investment community is waiting for is the follow up order from Bonduelle for a large 400kW quantaREV machine. There may also be some further exciting developments from the US Army Natick Soldier R&D Center (NSRDEC).
More growth is also expected in the cannabis space. So far, Tilray has purchased a 10kW REV machine and two 60kW continuous REV machines. In addition, The Green Organic Dutchman also bought a 60kW REV unit for the dehydration of cannabis.
We reiterate our buy recommendation for EnWave Corp. with a price target of $3.88, which is 115% above today’s stock price.
Download the first quarter 2019 EnWave Corp. Company Report.
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