Optec International Inc (OTCMKTS:OPTI) has been in the news this year, primarily for having branched out from only distributing OPTEC Fuel Maximizer globally and moving into the PPE (Personal Protection Equipment) distribution space.
It was a bold but understandable move considering the demand for PPE kits due to the coronavirus pandemic.
Last week, the OPTI stock rallied strongly after the company announced its financial results for the third quarter. The company delivered impressive numbers in the quarter and its stock gained as much as 18% as investors flocked to it.
But since then OPTI has shed nearly 20% of those gains and now sits at just $.039.
OPTEC generated revenues of as much as $337 million for the quarter, which reflects a significant rise both on sequential and year on year terms. In the year-ago period, the company generated revenues of $249 million, while the revenues stood at $257 million in the previous quarter.
On the other hand, the gross profits soared as well and hit $324 million for the quarter. In the same quarter in 2019, OPTEC had announced gross profits of only $92 million.
The rally in the stock last week was quite understandable. However, in addition to these encouraging numbers, OPTEC also managed to reduce its per share losses significantly on a year on year basis.
The earnings per share for the third quarter were $0 and that is a far cry from the $0.25 loss per share that had been suffered by OPTEC in the year-ago period. In this regard, it is also necessary to point out that in the first week of November; OPTEC also announced that it signed a contract for supplying Brand Specific PPE to an international commodities-related consortium.
It is a significant deal for the company and is valued at as much as $2 billion. OPTEC also revealed that it signed another contract with a Freight and Logistics company by way of which it is going to transport certain items to healthcare clients. Stay tuned as this story is one of the more interesting ones in the OTC market.