XZERES Reports Second Quarter Financial Results; The Fifth Straight Quarter of +30% Sequential Sales Growth; Revenues Increased 278% Over the Same Period Last Year
WILSONVILLE, Ore., Oct. 17, 2011 /PRNewswire/ — XZERES Corp. (OTCBB: XPWR), designer, developer and producer of distributed generation, wind power systems and power management and power efficiency devices for the renewable and clean energy markets, announced today its financial results for its fiscal second quarter ended August 31, 2011.
Revenue for the second quarter ended August 31, 2011 totaled $1.367 Million, a 34% sequential increase over Q1 2011 and a 278% year-over-year increase. It represented the fifth consecutive quarter that sales have increased by more than 30%. The Company reported a net loss of $1.76 million, a sequential improvement over the first quarter net loss of $1.99 million.
“We are extremely pleased with our second quarter performance and even more excited about what the near-future holds,” stated Frank Greco, CEO. “Our success in building a capable infrastructure and expanding our footprint internationally have set the stage for XZERES to generate a much higher level of sales activity in the coming quarters, which we believe will allow us to reach profitability within the next three quarters,” further commented Greco.
Since beginning its sales efforts just over one year ago, more than 80% of XZERES’ sales have been to the US market. While the company expects growth in the United States to continue, it believes there are much larger immediate and mid-term growth opportunities for its products overseas, particularly in the United Kingdom (UK), Continental Europe and Vietnam. The company’s efforts to develop these international sales channels include; establishing a subsidiary, office, and sales team in the UK; achieving the critical MCS Certification award in the UK for our 10kW Turbine (1 of only 3 companies in our size range to successfully do so); and successfully completing a critical pilot study with a large customer in Vietnam.
Thus far these international efforts have resulted in announcements of agreements with the Republic of Vietnam and with the largest distributed wind energy dealer in the UK – VG Energy LTD. These two agreements alone are expected to add more than $7-8 million in additional sales over the next 12-15 months. As we further capitalize on our global focus, we expect more agreements to follow.
According to David N. Baker, XZERES Chairman and Co-Founder, “Working together with the largest dealers and distributors in Europe and the United States, our plan is to change the face of the renewable and clean energy marketplace by offering customers a diversified technology-centric product offering. Equally important to our expected top-line growth, we anticipate our fixed costs going forward to remain stable, as we now have the necessary infrastructure in place to support the expected growth. As a result, the Company anticipates meaningful bottom-line performance improvements going forward as sales continue to expand.”
Despite potential quarterly fluctuations, due to product development activities or establishment of production processes associated with bringing new products to market, on an annual basis, we still expect gross margins to rise substantially from current levels over the next two fiscal years as we develop, acquire and deploy new products, services and business models. Furthermore, we maintain our goal [not a guarantee] for FY 2012 ending February 28, 2012, to significantly more than quadruple our revenues, as compared to the recently completed fiscal year 2011.
XZERES Investor Relations
XZERES Corp. is a renewable energy and clean energy technology company that designs, develops, manufactures and markets distributed generation, wind power systems as well as power management and power efficiency solutions for the commercial, light industrial and residential markets. Our grid connected and off grid wind turbine systems, which consist of our 2.5kW and 10kW devices and related equipment, are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural and island electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure and government applications. Our wind power systems are focused on distributed energy, where a specific machine’s energy output is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our customers take advantage of their local net-metering rules within the United States and Feed In Tariffs that are often available in Europe and Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs to carry the energy produced to another location and are therefore well suited for remote electrification, available with or without a battery coupled solution. Our power management and power efficiency solutions are deployed primarily for commercial and light industrial applications, and secondarily residential usage and target both urban and rural customers. For more information please see the Company’s web site at www.xzeres.com and www.xzeresenergy.com
Forward Looking Statements and Safe Harbor Statement:
The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. XZERES Corp. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These “Forward-looking statements” are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results included in our Exchange Act reports, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “goals”, “forecasts”, “hopes”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a)new business models may be more difficult and/or take longer than anticipated, may be more costly than anticipated and may have unanticipated adverse effects relating to the Company’s business; (b) the challenge of compensating and retaining key employees; (c) the impact on the Company and our customers from the current domestic and international economic, geo-political and financial market conditions; (d) the success of our new products and new business models in achieving their expected benefits; (e) to perform as expected without material defects; (f) to be qualified and accepted by our customers, (g) to successfully compete with products, systems, technologies and services offered by our competitors; (h) we may not be successful in undertaking the steps currently planned in order to further develop the business; and (i) other risks and uncertainties described in our filings with the Securities and Exchange Commission.
Neither XZERES Corp. management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission that are available on the SEC’s web site located at www.sec.gov. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We assume no obligation to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.
SOURCE XZERES Corp.