Edmonton, Canada - Resin Systems Inc., a polyurethane composite products development company, posted a C$10.4 million ($9.3 million) net loss for the second quarter of this year.
The Edmonton-based firm, which also reported modest quarterly sales of C$400 000, blamed the net loss on marketing and business development expenses, a C$3.7 million corporate overhead and C$2 million in financing charges.
Resin Systems (RS) said its primary focus during the quarter was an increase in efficiency at its Calgary plant, which it failed to achieve due to temperature and humidity-related surface quality issues and delays relating to equipment design.
"We have met some unexpected technical issues with our production," RS chairman and chief executive Greg Pendura said.
"The good news is we have addressed the issues and believe they are now behind us."
The company said it had gained ''traction'' in the North American utility pole market, boosting new orders during the quarter to more than C$2 million.
"The North American market awareness is increasing as seen by our order numbers and continued regular customer contact and interest," Pendura said.
"We continue to see repeat orders and a strong interest from new utility and engineering companies.
''In fact, during this quarter we completed our first wind farm transmission line with a new customer."
RS said it expected initial testing of its RStandard modular composite utility poles in China to be finished during the third quarter of this year and orders to be shipped by the end of the quarter.
The company entered into a joint venture with China's Jiangsu Far-East Group Co. Ltd and Shenzhen Chamber of Commerce for Electric Power Service in Oct last year to manufacture the RStandard poles.
RS said its Australian and New Zealand licence-holder Armor Utilities Structures Pty Ltd had achieved ''successful'' installations in three separate live grids and also claimed that it was in ''advanced discussions with various interested parties'' in South Korea, Philippines, India, the Middle East, Brazil and Mexico.