Red Cat Holdings Inc. shares fell 6% to $2.07 in Thursday’s after-hours trading after the company logged a decline in revenue for its fiscal third quarter.
Red Cat, which provides drone-based products and services, said its third-quarter loss narrowed to $2.56 million, or 5 cents a share, for the quarter ended Jan. 31, compared to a loss of $8.98 million, or 34 cents a share, in the year-ago period.
Revenue for the quarter fell to $1.86 million from $2.15 million. The company said the decrease in revenue was due to its focus on doubling manufacturing capacity for its Teal subsidiary.
Total operating expenses increased to $3.5 million from $1.72 million. Red Cat said this reflected two of the company’s acquisitions.
Chief Executive Jeff Thompson said the conflict in Ukraine is leading to inquiries for one of its drones and that the company is optimistic this will convert into material contracts.