Allen-Vanguard sees red in Q2

Allen-Vanguard Corp. posts a net loss of $1.1 million ($0.2 cents a share) in Q2, despite revenue climbing to $23.5, a 75% increase from the same period last year. The bomb detection equipment maker says earnings dipped into red figures as the company Allen%20Vanguard.jpgtabulated management bonuses since reporting net earnings of $200,000 ($0.1 a share) a year ago. Though marked in Q2, the $3.5-management bonus is not payable until June 1. Strong revenue reflected increased business with US customers, which increased fivefold to a record $10.4 million, the majority of which came from the company’s deal with Lockheed Martin to supply electronic counter measures equipment to the U.S. Department of Defense. “The company achieved significant new levels of revenue and EBITDA performance in this quarter,” says CEO David Luxton. “We also achieved important milestones including scaled-up production and manufacturing quality control for ECM orders to Lockheed. As well, our balance sheet improved with $53 million in a bought-deal equity offering, including the over-allotment exercise, as well as $12 million from warrant conversions, and we ended the quarter with record capital revenues.” Allen-Vanguard closed a $50-million financing deal with underwriters Versant Partners Inc. and Paradigm Capital Inc. in the second week of March.

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