TORONTO, Aug. 26 /CNW/ - SonnenEnergy Corp. (TSX-V: PWR) ("SonnenEnergy" or "the Company"), an established photovoltaic solar power systems integrator and solar power producer, today announced its fiscal 2008 second quarter results.
Q2 2008 highlights:
- Revenue increased by 33% from the second quarter of 2007
- Solar power production generated revenue of $0.4 million
- Phase 1 of Solar Park Hausen commenced operations and produced revenue
of $0.2 million
- Solar power integration business installed 10 solar power systems with
total capacity of 226kWp
- Commenced construction on $6.5 million, 1.1 MWp solar park for a
customer in Germany
- Opened sales office in Italy
Financial Results
The company's financial results are presented in Canadian dollars based on
Canadian generally accepted accounting principles ("GAAP").
3-Months Ended 3-Months Ended
June 30, 2008 June 30, 2007
Revenue $1,499,043 $1,125,526
Gross Margin $754,557 $957,375
Net Income (Loss) ($1,348,975) $4,757
Earnings Per Share ($0.02) N/A
EBITDA ($556,000) N/A
Financials
Revenue for the three months ended June 30, 2008 was $1.50 million, an increase of 33.0% compared to the second quarter of 2007. The increased revenue resulted from power generation revenues from Solar Park Hausen, which began operations during the second quarter of 2008, as well as increased sales and marketing efforts in the company's integration business.
General and administrative expenses for the three months ended June 30, 2008 were $0.52 million, an increase of 5% from $0.50 million in the second quarter of 2007. The increased general and administrative expenses in the second quarter of 2008 resulted largely from the costs associated with a marketing research program as well as costs associated with the transition from private to publicly-listed company.
Wages and benefits for the three months ended June 30, 2008 were $0.62 million, an increase of 46% from $0.43 million in the second quarter of 2007. The increase in wages and benefits is attributable to significant staff expansion in Germany in 2007 and the addition of Toronto-based directors and staff in 2008.
The net loss for the three months ending June 30, 2008 was $1.35 million, an increase of $1.40 million from gain of $0.005 million for the second quarter of 2007. The increased net loss resulted in large part from an increase of $0.2 million in salaries and wages; $0.3 million of interest related to leased assets; $0.4 million of amortization related to leased and owned assets and $0.2 million of professional fees related to costs of being a public-listed company.
Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA") for the quarter ended June 30, 2008 was ($0.56) million including stock options. The Company defines EBITDA as adding the following to net income; interest, taxes, depreciation, amortization and stock option expenses. Although EBITDA is non-GAAP measure, management uses it as a gauge of operating performance and has set a goal to be EBITDA positive for the remainder of the year.
For the six-month period ended June 30, 2008 revenue was $3.08 million compared to $1.13 million for the six-month period ended June 30, 2007. General and administrative expenses for the six-month period ended June 30 2008 were $1.01 million compared to $0.81 million during the first half of 2007. Wages and benefits for the first half of 2008 were $1.23 million compared to $0.66 for the comparable period in 2007. Net loss for the six-month period ended June 30, 2008 was $2.60 million compared to a gain of $0.005 million for the comparable period in 2007. EBITDA for the six-months ended June 30, 2008 was ($1.05 million) including stock options.
The company's complete 2008 second quarter financial statements and management discussion and analysis are available at www.sedar.com or on the company's website at www.sonnenenergy.com.
2008 Second Quarter Conference Call & Webcast
SonnenEnergy management will host a conference call on Thursday, August 28 at 10:00am (EST) to review the financial results for the second quarter of 2008. The dial-in number for the call is 416 644 3423 or toll free at 1-800 595 8550. The call will also be audiocast live and archived for 90 days at www.newswire.ca or www.sonnenenergy.com. A taped replay of the conference call will also be available until Thursday, September 4, at midnight by calling 416-640-1917 or 1-877-289-8525, reference number 21281524 followed by the number sign.
About SonnenEnergy
SonnenEnergy Corp. is a solar power systems integrator and solar power producer. The company markets, sells, designs, installs, operates, and maintains grid-connected solar power systems and has installed more than 160 photovoltaic ("PV") solar power commercial and residential systems since 2004. SonnenEnergy's corporate offices are located in Toronto, Ontario and its European operations are based in Polling, Germany. The Company has installed solar power systems with a combined capacity of 5,000 kWp. For more information, please visit SonnenEnergy's website at www.sonnenenergy.com.
Forward-Looking Statements
Forward-looking statements in this news release are based on current expectations that are subject to significant risks and uncertainties. Actual results might differ materially due to various risks and uncertainties as described in the company's amended and restated preliminary prospectus available at www.sedar.com. Such risks and uncertainties include, but are not limited to, the retention of key personnel, its dependence on suppliers for components for the systems that it designs and installs, the availability of silicon, its ability to expand sales, technology changes, unexpected warranty expenses or service claims, and its ability to meet its clients' expectations. SonnenEnergy assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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