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LiqTech International (LIQT) Guides Q4 Well Below Expectations

January 6, 2015 4:12 PM EST

LiqTech International (NYSE: LIQT) eports that the Company's revenue and net earnings were below expectations in the fourth quarter - 2014.

Mr. Sune Mathiesen, LiqTech CEO, remarked, "Our revenue and net earnings for the fourth quarter 2014 were less than anticipated and not in line with the progress we made in the third quarter. We expect that fourth quarter revenues will be in the range of $2,200,000 to $2,700,000. The shortfall is primarily as a result of the delayed implementation of several significant projects in the swimming pool and oil markets, which we expected to realize in the fourth quarter - 2014 but were delayed for reasons beyond our control. We expect that the delayed projects will now be realized in the first and second quarters of 2015. The shortfall is also the result of decreasing prices in the oil market which has caused potential customers to delay planned projects. While low oil prices have created headwinds with some of our customers, we believe that we have made recent progress in some areas despite the headwinds, and in addition, we have implemented a targeted sales strategy to diversify our sales efforts into other end markets as discussed in previous earnings calls."

*** The Street is looking for breakeven loss and revenue of $6.8 million for Q4.

Mr. Mathiesen further commented, "We are clearly not pleased with the fourth-quarter results. One factor in the disappointing results, in addition to delayed projects, was the time and effort that the management team dedicated to integration of the Provital acquisition. We believe these efforts are largely completed and have been very successful; however, the time and effort dedicated to integration naturally resulted in some cost to our sales efforts in the second half of the year. Looking forward, we are encouraged by our current order intake and recent breakthroughs in several business areas. We expect to see revenue improvement in the first and second quarters – 2015 and we will continue our hard work for growth and profitability."



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