Benzinga | Jun 1, 2021 09:59AM EDT

Canaan Shares Are Trading Higher On Q1 Earnings Results

* Canaan Inc (NASDAQ:CAN) reported first-quarter FY21 revenue growth of 490% year-on-year to $61.5 million. Total computing power sold rose 122% Y/Y to 2.0 million Thash/s.

* Revenues from Products rose 492% Y/Y to $60.5 million; Leases increased 496% Y/Y to $0.9 million; Services grew 833% Y/Y to $0.03 million. Other revenue declined 70% Y/Y to $0.01 million.

* The gross margin expanded 4,470 basis points to 48.2%.

* Operating loss declined 81% Y/Y to $2.1 million.

* Adjusted net income grew to $21.9 million, with a EPS of $0.

* Canaan held $204.2 million in cash and equivalents.

* The financial performance improved significantly in the quarter, driven by the Bitcoin price rally, higher customer demand for quality mining machines, and the ability to ramp up mining machine production and deliveries said Chair and CEO Nangeng Zhang.

* Price action: CAN shares traded higher by 9.23% at $9.17 in the market session on the last check Tuesday.