Press Release Source: WorldWater & Solar Technologies Corp.
WorldWater & Solar Technologies Announces Fourth Quarter Results
Tuesday March 18, 3:01 am ET
Reports Record Annual Revenue of $18.5 Million; Strong Balance Sheet to Support Growth in 2008
EWING, N.J.--(BUSINESS WIRE)--WorldWater & Solar Technologies Corp. (OTC BB:WWAT.OB - News), developer and marketer of proprietary high-horsepower solar systems, today announced results for the fourth quarter and twelve months ended December 31, 2007.
Revenue for the fourth quarter was $10.9 million, compared with $7.1 million reported in the fourth quarter of 2006 and $4.4 million in the third quarter of 2007. The increase in revenue was due primarily to the addition of several large contracts, including the Fresno Yosemite Airport. Some projects, however, including the Denver International Airport, were delayed due to logistical issues related to permitting and client finalization. Gross profit for the quarter was $0.6 million, versus $0.9 million in the prior-year period. Gross profit, and gross margins, were impacted by contract timing and startup costs tied to certain large projects currently underway. The Company’s net loss attributable to common shareholders for the fourth quarter of 2007 was $5.7 million, or $(0.03) per share, compared to a loss of $6.5 million, or $(0.04) per share, in the fourth quarter of 2006. The 2007 fourth quarter reflects additional investments in R&D, marketing, and operations to support WorldWater’s strategic growth initiatives.
For the twelve months ended December 31, 2007, WorldWater reported revenue of $18.5 million, compared with $17.3 million in 2006. Gross profit for the year was $1.7 million, versus $2.7 million in 2006. The net loss attributable to common shareholders for 2007 was $14.4 million, or $(0.09) per share, compared to a loss of $15.1 million, or $(0.11) per share, last year. In total, the Company installed 2.6 megawatts in 2007, versus 2.4 megawatts in 2006 and 275 kilowatts in 2005.
“2007 was, as expected, a pivotal year for WorldWater & Solar Technologies,” said Chairman Quentin T. Kelly. “We recorded our highest revenue ever – $18.5 million – and won some very large contracts, including innovative solar installations for the Denver International Airport and Fresno Yosemite Airport. In addition, we expanded our offices, hired critical staff, and signed letters of intent for a number of next-generation solar farms in Europe.
“More recently, since the start of 2008, we have seen several important events take place. We closed the acquisition of ENTECH, raised $35 million in funds from the Quercus Trust, and added key members to our Board of Directors – including David Gelbaum, the highly-regarded head of Quercus. These achievements bolster the company’s long-term growth outlook and solidify our leadership position in large, complex solar solutions. We now have ample funds to complete our 50 MW production line for ENTECH modules in Texas, and we hope to have this operation up and running in the next few quarters.
“We are also now in the process of finalizing many projects previously announced, while actively bidding on a plethora of new opportunities in the U.S. and abroad. We are seeing a significant number of projects that can leverage our ENTECH technology, and we anticipate these contracts will accelerate growth later this year. As for our already-announced letters of intent in Italy and Spain, we continue to wait for certain legislative issues to be resolved before the contracts can be concluded. In Italy, our 3.25 megawatt farm is moving forward but has seen delays tied to new legal requirements regarding photovoltaic applications. Likewise, in Spain, our projects – both the 3 MW solar farm in Aragon and the initial 10 MW one in Lorca – still await a decision by the Spanish Government on the exact incentive scheme (feed-in tariff) for solar power. As previously disclosed, the current feed-in tariff of 44 Euro cents per kilowatt hour is set to expire at the end of September, and the new government is now determining the feed-in tariff values going forward. While we cannot estimate the exact timing for the new tariff determination, which is out of our control, we remain optimistic that progress with our projects can soon be made, particularly given our representation in Spain and Italy and the overall strong support for alternative energy generation in Europe. WorldWater is strongly positioned for any contracts with our cost-efficient, ENTECH technology, whether or not the incentives are changed.
“In the meantime, we continue to bid on a record number of RFPs. With our recent capital infusion from the Quercus Trust and completion of the ENTECH acquisition, WorldWater enters 2008 better prepared than ever to take advantage of the many opportunities available to us. Given the many variables affecting our industry, however, we have determined that providing guidance is, for the time being, impractical. Whether the projects be small, like the sale of 12 Mobile MaxPure™ units destined for use by farmers in Iraq, or large projects such as complete energy systems for airports and solar farms, it is commonplace for governments and commercial enterprises to face interruptions or delays that have nothing to do with our products, technology, or service.
“We are very excited about the future for the company, both in 2008 and beyond. We appreciate our shareholders’ commitment and patience. With our extensive pipeline of projects, cutting-edge technology, and dedicated staff, we expect the coming years to provide long-term, attractive returns for our investors.”
Gruß
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