The CEO runs Tinkerine on a tight ship
Tinkerine (TTD.V), the Canadian manufacturer of the Ditto 3D Printer, released today its first quarter financial report. Revenues increased by 58% from CAD 109K to CAD 172K. In the first quarter ended 31 March 2016, Tinkerine performed strongly in Canada but lost market share in the USA and other markets.
In Q1 2016 revenue derived by geographic segment was Canada – CAD 153K and United States – CAD 18K versus geographic segmented sales in Q1 2015 of Canada – CAD 42K, United States – CAD 44K and Other – CAD 23K
The manufacturer is essentially targeting the Education market. Sales are therefore usually weaker in the first quarter and stronger in the second and third quarter.
Tinkerine faces possible cash issues
The company raised CAD 315K in the first quarter from the management and closely related persons. Cash outflow was CAD 244K in the first three months of 2016. At the end of the quarter the company had net cash available of CAD 272K.
Total outstanding number of shares has increased to 49M at the end of March 2016, giving the company a CAD 2.5M market capitalisation.
Tinkerine management has been able to reduce significantly its cost during the last 9 months. The company won’t be able to reduce them further. The company is now in a situation where it has to become cash-flow positive in the next months. Tinkerine has very limited resources to develop new products and to expand internationally. Considering the pressure from the competition in the USA and Europe, Tinkerine might fail to reach breakeven by the end of the year. This will put further pressure on its share price and limit its capacity to raise further funds.