Worldwide Energy and Manufacturing USA Announces Record Revenue and Net Income for the Second Quarter 2008
Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU)
-- Revenue increased 167% to $6.9 million for the second quarter 2008 -- Revenue increased 134% to $12.2 million for the six months ended June 30, 2008 -- Net income increased 90% to $425,000 for the second quarter 2008 -- Net income increased 100% to $655,000 for the six months ended June 30, 2008
Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive, today announced record revenue and net income for the second quarter ended June 30, 2008.
Second Quarter Ended June 30, 2008
Net sales for the three months ended June 30, 2008 totaled $6.9 million, an increase of $4.3 million or 167%, compared to $2.6 million for the three months ended June 30, 2007. Revenue increased due to an increase in orders in the energy division of approximately $3.3 million for solar modules and an increase of approximately $300,000 in the die cast factory as a result of an order from Shanghai GM. Shanghai GM is one of the largest vehicle manufacturers in China and GM is the seventh Fortune 500 customer obtained by Worldwide Energy.
Gross profit totaled $1.3 million for the period ended June 30, 2008, an increase of 43%, compared to $936,000 for the period ended June 30, 2007. Cost of goods sold for the second quarter of 2008 was $5.5 million compared to $1.6 million for the same period in 2007. The increase was the result of greater revenues in the energy division and die cast factory.
Gross margin was 20% for the three months ended June 30, 2008 compared to 36% for the same period in 2007. The decline was the result of the Company utilizing more outside services for the production of solar modules. Gross margins are expected to continue to improve as the Company continues its transition to becoming a direct manufacturer of its products.
Net income for the three months ended June 30, 2008 totaled $425,000 or $0.20 per share, an increase of 90% compared to $223,000 or $0.11 per share.
Six Months Ended June 30, 2008
Net sales for the six months ended June 30, 2008 totaled $12.2 million compared to $5.2 million for the six months ended June 30, 2007, an increase of 134%. Orders from the energy division increased during this period by $5.8 million and represented 47% of sales. Sales generated from Shanghai GM totaled $1.3 million during this period.
For the six months ended June 30, 2008 gross profit totaled $2.5 million, an increase of 49%, compared to gross profit of $1.7 million in the same period in 2007. Cost of sales for the six months ended June 30, 2008 totaled $9.8 million compared to $3.6 million for the same period in 2007. Gross margin was 20% for the six months ended June 30, 2008 compared to 32% in the same period in 2007.
For the six month period in 2008 net income increased 100% to $655,000 or $0.29 per share, compared to $339,000 or $0.16 per share for the six month period in 2007.
Cash and cash equivalents totaled $1.7 million on June 30, 2008, compared to $2.1 million at year end. Accounts receivable increased to $4.7 million for the period ended June 30, 2008 compared to $3.3 million at year end. Days sales outstanding improved to 62 for the period ended June 30, 2008 compared to 130 for the period ended December 31, 2007.
Total current assets and total assets were $11.6 million and $12.3 million on June 30, 2008. This compared to total current assets and total assets of $8.2 million and $8.8 million at year end.
Total current liabilities and total liabilities totaled $2.7 million and $3.1 million on June 30, 2008 compared to total current liabilities and total liabilities of $4.4 million and $5 million at year end. The Company’s current ratio improved to 4.31 to 1 for the period ended June 30, 2008 compared to 1.85 to 1 at year end.
On May 20, 2008, the Company paid off its line of credit in the amount of $960,000 and established a new line of credit. As of August 1, 2008 the amount used on the line of credit totaled $1.1 million. Additionally, in June 2008, the Company raised $5 million and issued 1.1 million shares of restricted common shares along with warrants to purchase an additional 722,000 shares at $7.00 and 389,000 shares at $9.00. These funds were used to expand the energy division and to provide additional working capital to expand and develop the Company’s business segments.
Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing, stated, “We are very pleased to announce the best second quarter in the company’s history. Our Energy division is performing well and with increased capacity and new solar contracts, we expect to experience this strong financial growth for the remainder of 2008 and beyond. We are pleased to be working with yet another Fortune 500 company such as Shanghai GM. Our strong financial performance clearly demonstrates the company’s business plan is working effectively. The remainder of 2008 is on track for explosive growth with records for both revenue and profitability.”
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. (“Worldwide”), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company’s worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.
For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.’s future press releases or request to be added to the Company’s distribution list by contacting John Ballard.
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of business risks, external factors and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events, or otherwise.
Contact: Worldwide Energy and Manufacturing USA John Ballard 303-885-5501 firstname.lastname@example.org HC International, Inc. Alan Sheinwald, Partner (914) 669-0222 Alan.email@example.com
SOURCE: Worldwide Energy & Manufacturing USA, Inc.