Canaan Inc. (CAN), a high-performance computing solutions, and bitcoin company, on Tuesday reported a loss for the third-quarter of 2023, amidst a decline in revenue, mainly due to a fall in demand. <\/p>\n
James Jin Cheng, CFO of Canaan, said: “While total revenue beat our guidance, it was reflective of the ongoing market dynamics characterized by soft demand and price concessions in computing power. As anticipated, our mining business<\/span> was impacted by the suspension of operations in Kazakhstan due to new local policies and counterparty default at a U.S. project.”<\/p>\n For the three-month period to September 30, the firm posted a net loss of $80.103 million or 3.13 cents per share, compared with a profit of $6.307 million or 0.24 cents per share, recorded for the same period previous year.<\/p>\n The net loss includes a $53.9 million inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments accrued during the quarter.<\/p>\n Loss per ADS stood at $0.47, compared with last year’s profit of $0.04 per ADS.<\/p>\n Excluding items, loss was at $70.4 million, versus a profit of $22.5 million a year ago.<\/p>\n Loss before income tax expenses stood at $100.546 million, compared with a profit of $5.240 million in 2022.<\/p>\n Loss from operations moved up to $112.846 million from $10.511 million a year ago. <\/p>\n Total revenue tumbled to $33.319 million, from last year’s $145.545 million.<\/p>\n Products revenue stood at $29.9 million, lesser than previous year’s $136.3 million. This is mainly due to lower selling prices, which resulted from overall softening in market demand.<\/p>\n Mining revenue was down at $3.3 million from last year’s $9.2 million, as a result of the decline in mining computing power which resulted from the temporary shutdown of around 2.0 Exahash\/s computing power in Kazakhstan to ensure legal compliance.<\/p>\n Looking ahead, for the fourth quarter, the company expects total revenue to be around $34 million. <\/p>\n For the fourth-quarter of 2022, Canaan had registered a revenue of $56.8 million. <\/p>\n