Creative Realities FY17 and 4Q17 Financial Results
Adrian J Cotterill, Editor-in-Chief
Creative Realities, Inc. (CREX (OTCQB: CREX) has announced its financial results for the year ended December 31, 2017, including the quarter ended as of the same date.
Rick Mills, Chief Executive Officer, remarked, “CRI achieved record revenue growth in 2017, organically increasing revenue by more than $4 million. Our progress in 2017 is attributable to three things: successfully integrating Conexus, investing in our sales team, and solid execution of our strategic plan for profitable growth. Adjusting for the impact of one large non-recurring project delivered in the fourth quarter of 2016, I’m particularly pleased to report that CRI revenue and gross profit grew by 50%+ and 30%+ in 4Q17 compared to 4Q16. Our product offerings and sales team continue to gain traction in a rapidly changing marketplace, and we expect to further build upon this momentum in 2018.”
2017 Financial Overview
Revenues were $17.7 million for the year ended December 31, 2017, growing by $4.0 million or approximately 30% compared to 2016.
Gross profit was $7.4 million in 2017, up $0.5 million, or 8%, compared to 2016.
Gross margin declined to 42% in 2017 compared to 50% in 2016 due to sales mix. Hardware sales grew approximately 80% in 2017.
Operating Loss declined to $4.1 million, down $0.5 million, compared to 2016, excluding the effect of a $2.0 million one-time non-cash charge related to issuance of holdback shares in connection with the ConeXus acquisition.
4Q17 Financial Overview
Revenues were $4.1 million for the three-month period ended December 31, 2017, a decrease of 25% compared to the same period in 2016 and an increase of 16% sequentially.
Gross profit was $1.5 million for the fourth quarter of 2017, down $1.2 million compared to the same period in 2016; gross profit increased 6% sequentially.
Gross margin declined to 36% in 4Q17 compared to 49% in 4Q16 due to sales mix. Hardware sales represented approximately 40% of total revenue in the fourth quarter of 2017 compared to 10% in 2016.
Operating loss/income changed from operating income of $0.2 million in 4Q16 to an operating loss of $1.6 million in 4Q17; operating loss decreased sequentially by $2.0 million.
2018 Financial Guidance
The Company is announcing financial guidance 2018 as follows:
Revenue growth to exceed 86%, equivalent to FY18 revenue of $33 million.
2018 positive EBITDA of a minimum of approximately $3.5 million.
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