Guidance Adjustment
Photocat adjust the forecast for turnover for the year 2017 down from 10 MDKK to between 6 MDKK and 8.5 MDKK mainly due to substantial periodization of the contractual purchase obligations for 2017.
The lower than expected growth in year-to-date 2017, and the reasoning for furthermore adjusting revenue expectations downwards is caused by two factors:
- A substantial amount in contractual purchase obligations have not been met. This is the case for the Bitumen-, Concrete- and Indoor- technology customers. We are in negotiations with our customers to close this gap but are not certain that the negotiations will finalize in 2017.
- Sales of Photocat Garden has continued in Q3 to underperform due to bad weather in Scandinavia and due to increased price competition amongst the professional Photocat Garden customers this has also affected the private label market which as a result is not able to meet its contractual obligations in 2017.
It is our belief that the market for our photocatalytic technologies is still in its early stages. The customer base for our products has grown, and our customers experience positive feedback from their customers. The general trend is however that Photocat's customers have had an overly optimistic perception of how fast the market accept products with our technology to clean air from toxic pollutants such as NOX. It is important to point out that no customers have been lost or have withdrawn products from the market with the Photocat technology and that we are in continuous negotiations with potential new customers.
Further explanation of the current market conditions and an updated market guidance for our revenue expectation will be given together with the publication of our third quarter report on the 3rd of November 2017.