November 03, 2022

tTech Limited (tTech), for the nine months ended September 30, 2022, booked a 6% decline in revenues to $283.34 million compared to $301.22 million recorded for the prior financial year’s corresponding period. Revenue for the third quarter rose 1% to $98.06 million relative to $96.88 million for the same quarter of 2021.
Cost of sales declined by 3% to $96.70 million from $99.97 million reported for September 2021. As such, gross profit also declined 7% for the period to $186.65 million (2021: $201.25 million). Gross profit for the quarter rose by 4% to close the quarter at $65.68 million (2021: $63.19 million).

Other income declined to $1.98 million for the nine months relative to $3.34 million in 2021, while administrative expenses rose 5% year over year to $174.45 million (2021: $166.32 million). Other operating expenses for the period reflected an 8% increase year over year to $21.63 million compared to $19.95 million recorded in 2021.
Operating loss for the period under review totalled $7.45 million, compared to the profit of $18.32 million booked for the corresponding period of 2021. Year to date, tTECH booked finance income for 2022 of $1.86 million compared to $1.53 million recorded in the prior year’s corresponding period and finance cost of $1.59 million (2021: $1.73 million).

Consequently, taxation credit amounted to $937,000 (taxation charge 2021: $1.62 million), thus net loss for the nine months amounted to $6.25 million versus $16.50 million net profit booked for the same period of 2021, a 138% decrease. Net profit for the quarter declined 61% to $3.08 million relative to $7.80 million reported for the third quarter of 2021.

The earnings per share (EPS) for the quarter amounted to $0.02 compared to $0.06 reported in 2021. Loss per share for the period totalled $0.10 (EPS 2021: $0.21). The trailing twelve months loss per share amounted to $0.14. The number of shares used in our calculations is 106,000,000 units. The company’s stock price closed the trading period on November 2, 2022 at $3.29.
The Company noted, “tTech completed one its largest cybersecurity projects to date, the implementation of a leading Endpoint Detection and Response (EDR) solution with artificial intelligence (AI) and machine learning (ML) capabilities across multiple organizations and geographies. We have been on a push to improve the Cybersecurity protection of all our customers. We have been on a campaign to inform and educate customers and prospects; our main message during the period was to replace or upgrade all antivirus with faster and smarter AI-powered prevention and autonomous detection and response solutions. These advanced cybersecurity solutions seamlessly combine automation with both AI and ML to detect and remediate modern attacks in real-time, at machine speed, and without extra intervention.”

Balance Sheet Highlights:

As at September 30, 2022, the Company reported total assets of $306.79 million, 9% below the $337.55 million reported as at September 30, 2021. This was as a result of a 63% decline in ‘Cash and Cash Equivalents’ to close at $18.25 million (2021: $47.53 million).
Shareholders’ Equity as at September 30, 2022 was $231.49 million compared to $256.05 million for the comparable period of 2021. This resulted in a book value per share of $2.18 compared to $2.42 the prior year.

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