Productive Business Solutions Limited has released results for the second quarter ended June 2020, reflecting adverse effects of the COVID-19 pandemic.
Revenue was down US$10.6 million (25.4 per cent) to US$31.2 million versus the prior quarter (Q1 2020) in which revenue was US$41.5 million.
Gross profit for the quarter was US$13.9 million, down $4.9 million over 2019. EBITDA was US$4.7 million, flat versus 2019.
Net Loss for the period was US$862 thousand, down US$1.6 million on second quarter 2019 results.
“The decrease in revenue was partially offset by an increase in our technology related business segments…”– PBS directors
Earnings per share were -74 US cents for the June quarter compared to US$0.59 in earnings in the similar period in 2019.
Management said that despite lower sales, the company was able to maintain gross margin at pre-COVID-19 levels (44.6 per cent versus 44.7 per cent Q1).
They indicated that the loss in revenue was primarily related to the company’s printing business, specifically in the office, print shops, education and government segments.
They stated that leadership has been focused on expense reduction and maximising cash flow which has mitigated the impact that the COVID-19.
Administrative expenses declined by US$3.1 million (19.4 per cent) versus prior quarter, which substantially offset the second quarter revenue decrease, it was indicated.
Included in first half expenses are US$443 thousand of restructuring expenses.
Directors stated, “PBS is working with our partners in the printing business to implement marketing and incentive programs to recover page volume and associated revenue (paper, supplies, and services). The decrease in revenue was partially offset by an increase in our technology related business segments, which will strengthen and solidify PBS position in the years to come.”
PBS signed a Tier 2 regional distribution agreement with Apple in Q3.
Management said that this further strengthens PBS’ position in the Education market and high end Enterprise market and opened PBS’ ability to sell its existing portfolio solutions and services.
Chairman PB Scott said in remarks attached to the period’s results, “We are honoured to be selected by Apple to be their regional distributor.”