Pioneering Technology expects 2017 revenues to grow 50% after record quarter

Pioneering Technology Corp. (CVE:PTE) said it is on track for revenue growth of 50% in 2017 following record quarterly results.

The maker of cooking fire prevention technologies reported revenue of $2.5mln in the third quarter to 30 June, up 58% on the same period a year earlier on strong demand for its products.

Net income jumped 270% to $1.2mln from $240,601 last year.

Chief executive Kevin Callahan said: “We continue to grow our business profitably. We are ahead of our plan year-to-date and believe our forecast of 50% revenue growth in 2017 is achievable.”

Callahan added that Pioneering is pursuing new opportunities that will allow the company to expand its product offering and penetrate new sales channels.

Pioneering designs and produces solutions for cooking fire prevention and energy reduction and markets them mainly in the multi-residential space, and through retail channels.

“The market for our product solutions is massive, awareness is growing and we are just in the early stages of market penetration,” Callahan said.

During the period the group reached a milestone with its SmartBurner product – which cuts out before fires can ignite – passing a new fire prevention testing requirement for electric coiled cooktops and ranges. It said SmartBurner is believed to be the only solution to meet the new UL858 industry standard.

Another highlight for the company in the quarter was a deal to provide a major hotel chain in North America with the SmartBurner product in 5,700 rooms.

In June Pioneering said it has completed its definitive partnership agreement with Finland’s Innohome Oy. Under the deal Pioneering will include Innohome’s award winning Stove Guard heat sensor in a new product it will introduce in North America.

The group also repaid its outstanding long-term loan with Roynat Capital Inc., using some of the proceeds raised in its recently completed $6.6mln equity financing

The company is now debt free and continues to have access to a low interest line of credit facility with TD Bank.

Story by ProactiveInvestors