The Calix Ltd (ASX: CXL) share price was a very strong performer on Wednesday.
The environmental technology company’s shares ended the day 11% higher at $5.67 after investors responded positively to its half year results.
Calix share price surges higher following results
- Total sales revenue grew 6.5% to $9.8 million
- US gross margins improved from 31.4% to 36.4%
- Operating loss of $5.2 million
- Loss after tax of $7.5 million
- Cash balance of $26.3 million with a further $8 million in grant income to come
Management commentary
Calix’s Managing Director and CEO, Phil Hodgson, commented: “FY22 is the year we accelerated on technology development, given the growing tailwinds that have transformed the financial markets since early 2021.”
“As a result, we have invested aggressively in people, capital and external expertise. This is starting to pay off. The investment by Carbon Direct into our cement de-carbonisation technology in September ratified this strategy, providing look-through value into just one arm of our business. The opportunities continue to build across all our lines of business, and we are well resourced and positioned to capitalise on them,” he added.
Outlook
No guidance was given for the second half. However, management has provided the market with its plans for the half and beyond.
It said: “The Company will continue working towards the FY22 targets across each line of business. Particularly, with a rapidly growing pipeline of opportunities in the CO2 and sustainable processing business, there is significant potential to convert existing relationships into licensing / project agreements, which Calix anticipates reporting in the near term.”
Management also provided an update on a scoping study that was undertaken with Pilbara Minerals Ltd (ASX: PLS) to assess Calix’s renewably powered technology as part of a local lithium salt production process.
The results from the scoping study remain subject to both the Calix and Pilbara Minerals’ Boards’ approvals to proceed further, possibly with an even higher capacity plant than first considered. Planning for the full hydro-metallurgical pilot trials is underway, and discussions on a joint venture between the parties to commercialise the process are on-going in parallel to the technical development work.
The post Calix (ASX:CXL) share price jumps 11% following half year update appeared first on The Motley Fool Australia.
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