WorldWater & Solar Technologies Announces Third Quarter Results Wednesday November 14, 3:01 am ET Revised Revenue Guidance for 2007--$20-$22 Million Revenue Guidance for 2008 -- $80-$90 Million ($50 Million Core Business; $30-$40 Million ENTECH)
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 third quarter and nine months ended September 30, 2007 and issued guidance for the years 2007 and 2008. ADVERTISEMENT Reflecting startup delays in implementation which pushed third quarter business into the fourth quarter of 2007 and first quarter of 2008, revenue for the third quarter was $4.4 million, compared with $6.5 million reported in the third quarter of 2006. Gross profit for the quarter was $0.6 million, versus $1.5 million in the prior-year period. Large projects which were scheduled for groundbreaking in the second and third quarters are now starting installation in the fourth quarter. The Company?s net loss for the third quarter of 2007 was $3.8 million, or $(0.02) per share, compared to a loss of $0.9 million, or $(0.01) per share, in the third quarter of 2006. The 2007 third quarter reflects investments in R&D, marketing, and operations to support WorldWater?s strategic growth initiatives, which include moving to fewer, multi-megawatt projects from higher volume smaller projects.
For the nine months ended September 30, 2007, WorldWater reported revenue of $7.6 million, compared with $10.3 million for the first nine months of 2006. Gross profit year to date was $1.1 million, versus $1.9 million in the prior-year period. Net loss for the first three quarters of 2007 was $8.7 million, or $(0.05) per share, compared to a loss of $8.6 million, or $(0.07) per share, last year.
?We saw results somewhat lag expectations this quarter due to unavoidable delays regarding our $17 million project for Fresno Yosemite International Airport, our $13.3 million project at Denver International Airport, and our $7.2 million project at Valley Center Water District in California, such that our updated guidance for this year is revenue of $20 million to $22 million. The delays, mainly for permitting or contractual changes in the scope of work, are not unusual in our industry and have meant that certain revenue reporting has shifted from the third quarter into the fourth quarter of 2007 and the first quarter of 2008,? said Quentin T. Kelly, Chairman and CEO.
?Our guidance for 2008 is $80 million to $90 million in revenue broken out as $50 million in WorldWater core business and $30-$40 million in new ENTECH concentrator business. We are very enthusiastic about the execution of current and upcoming contractual projects and the business pipeline for next year and beyond,? Mr. Kelly continued. ?2007 has been a year with great accomplishments, including the signing of the Agreement to merge with ENTECH, Inc., setting the stage for extensive growth as we enter 2008. We have succeeded in our shift in focus to larger solar projects, as demonstrated by contracts for the two international airports and the Valley Center Water District, among others.
?In addition, our lawyers in Spain are continuing to finalize contracts with M&G Promociones de Vivienda Urbana S.A., a real estate development firm, while we analyze many other projects there in conjunction with our Spanish advisor, Prime Solar Senergy. Our pipeline of business opportunities both domestically and internationally for large solar projects continues to expand, and we have begun the manufacturing line to produce 50 MW of ENTECH 20x concentrator modules for the U.S. and European markets.
?To accommodate our growth, on October 1 we also moved to new, much larger facilities in Ewing, NJ and have added engineering, project management and sales personnel to execute our business pipeline. With the combined technologies of WorldWater, ENTECH and our strategic partner EMCORE, our solar systems will be uniquely capable of providing utility-scale electrical and thermal energy on site at prices that we expect to be competitive with the lowest-cost solar electric providers in the world. This patented concentrator technology, integrated with WorldWater?s proprietary control devices, allows for the installation of large solar ?farms? with greatly-reduced requirements for silicon cell materials. Given our position with such advanced solar applications, we look forward to strong, solid expansion in 2008,? Mr. Kelly concluded
Gruß Bow
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