EnWave (TSXV: ENW) (OTC: NWVCF) reported fiscal second-quarter 2020 results on Friday, May 29, before the market open. The cannabis player's revenue declined 15% year over year, driven by the fallout from the COVID-19 pandemic. It posted a loss per share of 0.02 Canadian, whereas it broke even in the year-ago period. The company's NutraDried segment, based in Washington state, makes all-natural dried cheese snacks. Its Canada-based EnWave segment licenses, manufactures, and installs equipment for dehydrating organic materials, including food, pharmaceuticals, and cannabis. The market reaction was slightly positive. On Friday, EnWave shares on Canada's TSX Venture Exchange (TSX) gained 2.6%, and shares traded over the counter (OTC) in the United States were up 1.3%. The S&P 500 index rose 0.5%. Image source: Getty Images. EnWave's key numbers All monetary figures are in Canadian dollars. Metric Fiscal Q2 2020 Fiscal Q2 2019 Change Revenue CA$7.49 million CA$8.77 million (15%) Net income (CA$1.85 million) (CA$0.22 million) N/A. Loss expanded more than 700%. Earnings per share (CA$0.02) CA$0.00 N/A. Result worsened to negative from breakeven. Data source: EnWave. Results are for the period ended March 31, 2020, and are based on International Financial Reporting Standards (IFRS). Segment revenue results were as follows: EnWave: Revenue rose 8% year over year to CA$2.2 million, driven by higher radiant energy vacuum (REV) dehydration technology machine sales primarily to customers in the food industry. NutraDried: Revenue fell 21% year over year to CA$5.3 million. The decline was driven by distribution within fewer Costco stores, partially offset by growth in the grocery and online sales channels. Gross margin came in at 25%, down from 36% in the year-ago period. The decline was driven by a change in sales mix. The NutraDried segment sports higher margins than the EnWave segment. Plans to launch REV tech into the U.S. cannabis market During the quarter, EnWave announced plans to begin the commercial deployment of REV technology into the U.S. cannabis market. The company said that it's "in talks with numerous U.S. cannabis companies." Pandemic's impact and company's mitigation response In its earnings release, EnWave included a lengthy discussion of the COVID-19 pandemic's impact on its operations. Here are what I view as the key points (wording directly from release): Both EnWave and NutraDried have maintained manufacturing operations without interruption. The international travel restrictions imposed globally to contain the spread of the virus have had a material impact on EnWave's international operations. [O]ur technical team has successfully developed remote installation and training programs for our 10kW REV machinery to mitigate the impact ... COVID-19 has had an impact on the distribution channels for NutraDried's products. Several states in the U.S. have issued stay-at-home orders, leading many non-essential retailers to close ... , thus disrupting NutraDried's distribution logistics. [The "several" in "several states" would more accurately be "many."] COVID-19 has challenged our ability to secure meetings with buyers to gain new points of distribution for Moon Cheese. In response to the pandemic, in late March, EnWave implemented a cost containment strategy. Among other actions, it's reduced headcount by 36 full-time-equivalent employees and stopped using contractors. Thus far (two months), the company has reduced expenses, at an annual run rate, by $4.7 million. EnWave's balance sheet remains solid. It has a working capital surplus of CA$24.4 million and cash position of CA$15.6 million. Indeed, management believes that it's "in a strong position to pursue growth across both segments." Looking ahead In light of the pandemic, EnWave turned in a fairly solid quarter. The company doesn't provide guidance. It's a given that its results in fiscal Q3 (corresponding to calendar Q2) will also be negatively affected by the global crisis -- and probably more so than in fiscal Q2, at least on the revenue side. It's also highly likely that fiscal Q4 results will be hurt, though the pandemic's impact on its operation seems poised to lessen by fiscal Q4. U.S. states have largely begun to reopen their economies, which should help its NutraDried segment get back on track. Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. And make no mistake – it is coming. Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks. Simply click here to get the full story now. Learn moreBeth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends EnWave. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.Source