Surna Inc (OTCMKTS:SRNA) Updates On Sales Contract Backlog
Published
58 mins ago
on
January 3, 2018
By
Melissa Kay
Surna Inc (OTCMKTS:SRNA) Q3 2017 backlog of $4.311 million comprises of $1.972 million attributable to sales contracts implemented during the quarter closed September 30, 2017, and the remaining $2.339 million related to prior quarters. Nearly 45% of Q3 2017 backlog, 30% increase from Q2 2017, is attributable to assignments for which company has not received a further deposit on its proprietary equipment, hence there are possible risks of project delays or cancellation.
The details
The increase in backlog can be attributed to new contracts awarded in Q3 2017 totaling $2.385 million, bringing their total new sales contracts conferred for the nine months closed September 30, 2017 to $7,182 million. However, depending on the prevailing status of their outstanding sales contract, they consider at least 50% of their Q3 2017 backlog could be recorded as revenue in Q4 2017.
In an attempt to increase Surna bookings of new sales deals and grow revenue, the company is in the course of upgrading its lead generation and business advancement system; overhauling project management processes; continuing to build its direct sales team with experienced personnel; reallocating sales territories to enable the sales personnel to emphasis on individual regional requirements and to become personally involved in the respective markets; and implementing better management information systems to enhance sales pipeline visibility and the related accountability for each of their direct sales people.
However, the ever-changing nature of their sales and the needs of their clients make it difficult for them to predict when they will recognize revenue. The company continue to remain focused on swelling its sales contract backlog and getting larger projects in an attempt to increase revenue.
On Thursday trading session, the stock price of Surna gained more than 2% to close the day at $0.223. The gains came at a share volume of 3.12 million compared to average share volume of 826,617.
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