MicroPlanet Reports Q1 Results; Sales Increase 59%

Jun. 16, 2011 (Canada NewsWire Group) --

Stock Listing: MP:TSXV
Stock Listing (US): MCTYF: OTC
Web Site: www.microplanet.com

SEATTLE, WA, June 16, 2011 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a provider of energy conservation and power quality products, today reports interim unaudited consolidated financial results for the three-month period ended March 31, 2011 (the 'Quarter"). All dollar figures are reported in U.S. currency, unless otherwise stated.

Quarter Results

MicroPlanet reported sales of $1,025,714, a 59% increase over the Prior Year Quarter. Gross margins for the Period were 33%, compared to 31% in the Prior Year Quarter. Total operating expenses of $807,409 represent a decrease of 38% ($500,700) as compared to the Prior Year Quarter. The increased revenue, combined with cost controls, resulted in a 58% reduction in the net loss for the Quarter ($466,924), as compared to the Prior Year Quarter. Sales for the Quarter consisted of deliveries of the Company's Second Generation Low Voltage Regulators (LVR2) to energy utilities in Australia and domestic deliveries of first generation commercial energy conservation products.

"During 1Q 2011 we the delivered best net operating results in MicroPlanet history," said Brett Ironside, President and CEO. "We were able to ramp back up our production levels taking advantage of manufacturing platform upgrades we initiated in 3Q 2010 with plenty of capacity to spare. These results validate our decision to segregate the manufacture of controller boards from finished regulators and confirm that we can leverage this model for scaling manufacturing into other jurisdictions. We are pleased with our manufacturing partners and look forward to leveraging their competencies to the manufacturing of our new regulators serving new power consumption and rating profiles."

"We are very pleased with the now obvious results of our cost control and corporate right sizing efforts the past year as discussed in prior shareholder communications," Ironside continued. "Sales and marketing costs may start to increase again later in the year as we ramp up sales and distribution efforts to capitalize on the certification and availability of our product line redesign."

Outlook

"We are poised to gain Underwriters Laboratories approval for an entirely new product line that will serve smaller, split-phase multi-family housing units. We expect to deliver multiple units to US Department of Defense customers imminently. The new product line will also serve multiple customer profiles supporting the integration of renewable generation on the grid, an area in which we have seen much more interest during the past few months."

The Company expects a significant slowing of LVR2 deliveries to Australia for the balance of 2011. "The large volume of deliveries in the first quarter has provided significant on-hand inventory for our customer," Ironside explained. "The recent flooding in Queensland will also undoubtedly affect our customer's ability to absorb LVR2 units into its grid. However, we expect that the deferral of sales to Queensland may be at least partially offset by sales of LVR2s to new customer utilities in Australia, New Zealand and in other jurisdictions."

The Company continues to make progress on the development of our commercial 50 Hz product lines for Australia, the UK, and other global markets. "We expect that initial trials followed by certification efforts over the next several months will lead to product availability before year end. Sales efforts by our distribution partners will start earlier, as soon as delivery dates can be reasonably forecast," Ironside concluded

Financial Highlights

Net comprehensive loss for the Quarter was $615,088 or $0.01 loss per share (basic and diluted) compared to a net comprehensive loss of $1,263,979 or $0.03 loss per share (basic and diluted) in the same Prior Year Quarter.

The financial statements for the Company were prepared using International Financial Reporting Standards ("IFRS") for the first time, in accordance with Canadian Accounting Standards Board and securities regulatory commission requirements. Certain previously-reported GAAP-based results for the Prior Year Quarter were reclassified or adjusted to IFRS for comparison purposes. The results for the Quarter, along with reclassifications of results of the Prior Year Quarter, are unaudited.

MicroPlanet's financial information for the three-month and nine-month periods ended March 31,2011 and 2010, along with the accompanying Management's Discussion and Analysis for the same period is available on SEDAR (www.sedar.com) and company's website at www.microplanet.com.

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. solutions improve power quality and save energy by dynamically managing incoming voltage to a home or business through the use of patented, advanced power electronics. MicroPlanet's technology has been deployed in seven countries by more than 20 utilities, the U.S military and multiple commercial customers to save energy, improve power quality and grid efficiency and to facilitate the integration of renewable energy sources, including solar and wind. MicroPlanet is based in Seattle, WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. www.microplanet.com.

THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS.  ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.

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