Blue Hat Clocks 206% Revenue Growth In Q2, Margin Shrinks Reflecting Higher Costs

Blue Hat Interactive Entertainment Technology BHAT reported second-quarter FY21 revenue growth of 206.4% year-on-year to $8 million.
Blue Hat is a communication services and Internet Data Center (IDC) business provider and developer and operator of mobile games and augmented reality (AR) education curricula and products in China.
Higher contributions from the mobile games and communication services businesses and the acquisitions of Xunpusen and Fuzhou Csfctech Co., Ltd. And its two subsidiaries drove the growth.
The gross margin contracted 1,680 bps to 58.9% due to higher initial costs of establishing the new businesses and integrating acquisitions.
Income from operations increased 159% Y/Y to $1.9 million. EPS was $0.003 versus $0.014 last year.
Blue Hat held $11.5 million in cash and equivalents.
Price Action: BHAT shares traded lower by 2.64% at $0.5647 on the last check Monday.

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