US: SmarTire nine-month loss almost doubles
The net loss at tyre pressure monitor maker SmarTire for the nine months ended 30 April, 2006 almost doubled to $US26.3m, or a loss per share of $0.09, compared to a net loss of $13.6m, or $0.07, for the same period last year.
Net loss for the quarter decreased to $4.3m, or $0.01 per share, for the third quarter of fiscal year 2006, from $7.1m, or $0.03, for the third quarter of fiscal year 2005.
The company said the substantial increase in the nine-month loss was primarily due to non-cash interest and finance charges of $20.8m of which approximately $16.1m related to expenses incurred in connection with SmarTire's $100m equity line of credit.
The charge was taken as uncertainty exists as to when SmarTire will register its equity line of credit.
Q3 revenue rose 262% to $1,195,136 from $330,406 in the previous year. The company said Q3 sales represented a 42% gain over the second fiscal quarter of this year.
For the nine months, SmarTire's sales increased 157% to $2,627,617 from $1,022,484 a year ago.