March 31, 2008 - Six Month Results - Corporate Update
Calgary, Alberta - May 30, 2008 - Sustainable Energy Technologies Ltd. (TSXV: STG), www.sustainableenergy.com reported its financial and operating results for the six months ending March 31, 2008. The Financial Statements, Management Discussion and Analysis and Corporate update containing a more fulsome discussion can be found with the Company's public documents on SEDAR (www.sedar.com) and at the Company's website (www.sustainableenergy.com) under Investor/Financials/Fiscal 2008.
During this period, Sustainable completed its optimization of the SUNERGY platform. The new platform uses a modular approach to support a range of single phase and three phase low voltage products with power ratings from 3kW to 20kw. The Company believes that the new SUNERGY platform will be the low cost leader in its class. Product rollout is scheduled for September/October of this year.
Beginning in the second quarter, the Company redirected its marketing resources towards developing multi-year, multi megawatt OEM and private label relationships. The Company is executing on its strategy.
* On May 16, 2008 the Company signed a letter of intent with Ingeteam SA ("Ingeteam") under which Ingeteam will distribute SUNERGY inverter in Spain and Italy for specialty applications and Sustainable will have the right to distribute the Ingeteam central inverters under a Sustainable label or joint Sustainable/Ingeteam label. Ingeteam is ranked 2nd in the world in solar inverter sales.
* On May 26th 2008, the Company reached an agreement with Spanish construction and energy giant Copcisa SLU ("Copcisa") to develop and jointly market a package consisting of thin film PV modules, inverters, racking and wiring to the building products industry for industrial rooftops in Spain. The goal is to reduce the installed cost per watt by using Sustainable's parallel system to ensure 100% area coverage and simplify the system design and installation. Copcisa is one of the largest construction companies in Spain, and has the financial strength and market presence to dominate this market.
* During the period, Sustainable announced agreements with two leading CPV developers for trials of the SUNERGY inverter underway and several others are planned for the next few months. In each case, the potential is for multi-megawatt project applications. The Company and Ingeteam will collaborate with Ingeteam to jointly market their products to the CPV market segment, which many believe will be several hundreds of megawatts in the next 1 - 3 years.
* The Company also noted that negotiations with several PV module manufacturers and systems integrators to private label the SUNERGY inverter platform are in progress.
"Our marketing strategy is to lever our cost advantages to gain high volume, and to lever our technology advantages to achieve a larger share of revenues from each project. It is working, and the significance of the partnerships with Ingeteam and Copcisa cannot be overstated," said Michael Carten President & CEO of the Company. "The partnerships are a strong validation of value of our technology in well defined market segments, and will be the platform for growth in Spain and other markets.
"Marketing to promoters of large utility scale projects has been more problematic than we anticipated for a variety of reasons. The change in strategy plays to our strengths, and the response has been very positive," added Carten.
Revenues for the six months were $652,991 down from $946,960 for the same period in 2007 reflecting price competition from higher power rated central inverters in utility scale project markets and a loss of at least one large transaction due indirectly to the Spanish banking liquidity crisis in January/February 2008. The operating loss (before interest taxes and amortization) for the months was $1,475,204 down from $1,629,579 for the same period last year.
Liquidity, as measured by working capital, was $4,419,323 at March 31, 2008 vs. $5,809,342 as of March 31, 2007. Cash and short term investments totaled $3,736,661 at March 31 2008 with component and finished product inventory at $1,839,505. The Company's average monthly burn rate (excluding inventory purchases) is approximately $250,000 per month.
About Sustainable Energy: Based in Calgary Alberta, Sustainable Energy Technologies (www.sustainableenergy.com) designs and manufactures and distributes power inverters for distributed alternative energy applications, including solar PV and small wind power systems and energy storage systems, such as batteries and stationary fuel cells.
Sustainable's SUNERGYTM solar inverter is an "extra low voltage" platform which offers several very distinct advantages over high voltage inverters for grid connected solar PV systems, especially for thin film rooftop solar PV systems and building integrated PV applications.
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.