IRVINE, CA--(Marketwire - February 11, 2008) - Composite Technology Corporation ("CTC") (OTCBB: CPTC) announced today its results for the fiscal quarter ending December 31, 2007.
CTC recorded record quarterly revenue for the first fiscal 2008 quarter of $18.2 million, an increase of 40% compared to revenue of $13.0 million for the comparable fiscal 2007 quarter and an increase of 184% compared to September 2007 quarter's revenues of $6.4 million. The December 2006 quarter included approximately $4.5 million of revenues relating to our E Services entity, which is no longer consolidated. Excluding those revenues, the year-over-year revenue growth from 2006 to 2007 is 114%. Compared to the September 2007 quarter, the GAAP net loss improved by $11.0 million, from $18.4 million or $0.09 loss per share to $7.4 million or $0.04 loss per share, on improvements in product margins of $6.3 million, operating expense decreases of $0.5 million, and interest and other expense reductions of $4.2 million. GAAP net loss increased $0.4 million to $7.4 million or $0.03 loss per share as compared to $7.0 million or $0.04 per share in the December 2006 quarter on increased R&D expenses related to our DeWind subsidiary's D8.2 prototype and increased interest expenses related to higher debt balances. "We are excited about our order successes and the improvements in our profitability for each of our business segments," commented Benton Wilcoxon, Chief Executive Officer for CTC. "Our key customer in China, Jiangsu New Far East, became certified to strand aluminum on our ACCC core product during the quarter, and we have just received orders in two new international markets for CTC Cable. For DeWind, our recent 40 turbine, approximately $90 million order, from an existing Czech customer represents both repeat business and a good price for our turbines. Additionally, with our recent D8.2 prototype installation in Texas, we are well positioned for sales revenue growth of the DeWind business."
"CTC Cable revenues of nearly $11 million and product margin improvement to 38% without increasing our cost structure resulted in $2.2 million in operating income for CTC Cable's December 2007 quarter, which demonstrates the viability of our CTC Cable business model," said D.J. Carney, Chief Financial Officer of CTC. "The order win with our Czech customer significantly increases our order backlog of the DeWind business to over $140 million for 2008 and 2009 turbine deliveries."
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