author: CapitalWatch Staff
Canaan Inc. (Nasdaq: CAN) posted 67% revenue growth for the fourth quarter, but the company’s recent troubles amid the overall market uncertainty have weighed on its stock performance.
In a statement posted after markets closed Thursday, Canaan reported revenues of $66.5 million for the year-end trimester, which it attributed to an 87% increase in computing power sold. Net loss during the quarter was $114.7 million, or 77 cents per American depositary share, according to the report.
For the full year 2019, Canaan posted revenues of $204.3 million on losses of $148.6 million. It sold 10.5 million TH/s in supercomputing power last year, up from 7.2 million TH/s in 2018.
In November 2019, Canaan became the first Chinese supercomputing company to become publicly traded on Wall Street. The Hangzhou-based company raised $90 million in its IPO by selling 10 million of its American depositary shares.
The deal was underwritten by Citigroup Global Markets Inc., China Renaissance Securities (Hong Kong) Ltd. and CMB International Capital Ltd.
“For me, the listing of Canaan is only a start,” Nangeng Zhang, Canaan’s founder, chairman and chief executive officer, told CapitalWatch in an interview on IPO day.
Canaan provides supercomputing solutions globally through its high-performance ASICs, application-specific integrated circuits. It also delivers artificial intelligence (AI) solutions, including AI chips, algorithm development and optimization, hardware modules, end-product and software services.
In the first six months of 2019, Canaan was the second-largest maker of Bitcoin mining machines in the world in terms of computing power sold, according to data by independent market research firm Frost & Sullivan.
In the statement today, Zhang said, “The success of our initial public offering in November 2019 has elevated the global recognition of our brand and demonstrated the attractiveness of our…