Research Frontiers (NASDAQ:REFR) Posts Earnings Results

Research Frontiers (NASDAQ:REFR) posted its quarterly earnings results on Thursday. The technology company reported ($0.02) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $0.09 million during the quarter. Research Frontiers had a negative return on equity of 159.20% and a negative net margin of 343.47%.

Here are the key takeaways from Research Frontiers’ conference call:

• Gauzy’s financial restructuring sharply reduced SPD emulsion and film production, causing lower royalties, delayed programs, and customer supply constraints. Management expects production to recover but acknowledged that the disruption could weigh on revenue for the next several quarters.
• Management said Gauzy’s restructuring is nearing completion, with court proceedings potentially concluding as soon as September and financing already supporting employee payments and production restarts. Research Frontiers believes Gauzy could emerge leaner and better capitalized, with full-scale production resuming under its preferred Plan A.
• The company said major automotive programs with Mercedes, Ferrari, Cadillac, and McLaren remain intact, while two new aircraft programs were won during the disruption. Customer support and continued program commitments were presented as evidence that SPD technology retains strong market acceptance.
• Research Frontiers added KLIM, a Polaris division, as a licensee to develop SPD motorcycle helmet visors and sports goggles, while also advancing Black SPD and architectural retrofit products. Management described the retrofit opportunity as potentially large and faster to commercialize than automotive programs once film supply normalizes.
• The company remains below Nasdaq’s $1 minimum bid requirement, with an initial compliance period extending to late November, and may need additional capital depending on how its manufacturing contingency plans develop. Management said it may pursue debt or equity financing, particularly if Research Frontiers directly acquires SPD production assets under Plan D.

Research Frontiers Stock Down 0.7%

REFR stock traded down $0.00 during trading hours on Friday, hitting $0.46. The company’s stock had a trading volume of 47,170 shares, compared to its average volume of 44,523. The company has a market capitalization of $16.18 million, a PE ratio of -6.63 and a beta of 0.55. Research Frontiers has a 12 month low of $0.35 and a 12 month high of $2.70. The stock has a 50 day moving average price of $0.58 and a two-hundred day moving average price of $0.83.

Hedge Funds Weigh In On Research Frontiers

A number of institutional investors have recently made changes to their positions in the business. Virtu Financial LLC acquired a new position in shares of Research Frontiers during the fourth quarter worth approximately $27,000. XTX Topco Ltd acquired a new position in Research Frontiers during the 4th quarter valued at $28,000. Finally, Raymond James Financial Inc. boosted its holdings in Research Frontiers by 151.5% in the 2nd quarter. Raymond James Financial Inc. now owns 41,337 shares of the technology company’s stock valued at $68,000 after purchasing an additional 24,902 shares during the period. 11.91% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Research Frontiers in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company currently has an average rating of “Sell”.

Research Frontiers Company Profile

Research Frontiers Inc (NASDAQ:REFR) is a materials science company specializing in the development and licensing of its proprietary SPD-Smart™ light control film. This patented Suspended Particle Device technology enables electronic tinting of glass to provide variable light transmission, glare reduction and solar heat management. SPD-Smart films are designed for integration into architectural windows, automotive sunroofs and skylights, as well as aerospace and specialty applications.

The company’s core business model revolves around licensing its SPD technology and supplying the functional film to manufacturing partners.