Topic: Growth Stocks

Tech stocks: CriticalControl moves more tech services into shale gas

CRITICALCONTROL SOLUTIONS, symbol CCZ on Toronto, sells services and software that help businesses better manage, access and store their information. CriticalControl gets about 60% of its revenue from clients in the oil and gas industry, followed by government (20%), health care (10%) and finance and retail (10%).

The company also makes traditional dry flow meters for natural gas wells, and electronic flow measurement devices (EFMs) for shale-gas drilling.

In the three months ended June 30, 2011 CriticalControl’s revenue fell 2.0%, to $12.5 million from $12.8 million a year earlier. Revenue at the tech stock’s Service Bureau Operations division rose 11%, while revenue rose 4% at the Canadian Energy Services division.

Tech stocks: Higher service profits offset by shale gas spending

U.S. Energy Services revenue fell 16%. However, that was mainly because the division is shifting its production toward shale-gas equipment to take advantage of a major increase in shale-gas drilling in the northeastern U.S. As part of this plan, Critical Control is expanding its EFM plant in Indiana, Pennsylvania.

The tech stock’s earnings fell to $227,000, or nil per share, from $1.1 million, or $0.03 a share, a year earlier. Higher profits at the Service Bureau Operations were offset by the costs of shifting production at the U.S. Energy Services business.

We updated our advice on CriticalControl Solutions and other energy and tech stocks in our August 12, 2011, Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to learn how you can start profiting from Stock Pickers Digest right away.

(Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.