Open Energy Corp. (OTC BB: OEGY), a renewable energy company focused on the design and manufacturing of solar energy products, announced today financial results for the fiscal year ended May 31, 2006 and provided guidance for fiscal 2007.
FY 2006 Business Highlights
• Discontinued oil and gas operations and shifted focus to the renewable energy industry;
• Signed international licensing agreement for SunCone™ CSP and successfully completed initial testing of the first prototype;
• Closed the acquisitions of Solar Roofing Systems, Inc. and Connect Renewable Energy, Inc. thereby establishing a diversified portfolio of building integrated photovoltaic products including roofing membranes, PV tiles and architectural glass
• Assembled experienced Board of Directors and management team;
• Achieved CSA listing, UL 1703 certification, and Class A fire rating for SolarSave® SP 480 Membranes.
• Secured $15.75 million financing with a commitment for an additional $3.5 million due upon effectiveness of Company’s SB-2 Registration Statement.
• Completed the installation of SolarSave® Roofing Tiles at the Tahoe Center for Environmental Science at Sierra Nevada College in Incline Village, NV, and at the Evelyn Pease Tyner Interpretive Center in Glenview, IL;
• The Company also reported that its projected sales pipeline currently includes a variety of residential, commercial and industrial projects with a total potential sales value of $10.3 million.
• Expects to generate revenue in the range of $22 to $24 million in fiscal 2007, with gross margins of approximately 20%;
"We achieved many goals in Fiscal 2006 and created infrastructure to dramatically increase sales in Fiscal 2007," commented David Saltman, President and CEO of Open Energy. "By the end of fiscal 2006, we successfully completed two acquisitions and transformed into an integrated company designing, manufacturing and selling high-quality renewable energy products for residential and commercial markets.
“To properly position our company for long-term growth in the solar industry, we are building strategic alliances with existing solar integrators, builders, roofers and contractors,” Mr. Saltman continued. “We believe we are well positioned to add many additional alliances in the near future as more builders and solar integrators nationwide recognize our superior product offerings which recently received CSA listing, UL 1703 certification and Class A fire rating.”
For the year ended May 31, 2006, Open Energy reported revenues of $152,532, which were generated primarily from the sale of SolarSave® Roofing Tiles. Net loss for the year totaled $12.2 million, or $0.22 per share. The net loss was attributable to expenses related to the company’s acquisitions and built-out of its infrastructure, a loss from discontinued operations for the oil and gas assets, and research and development expenditures. The company expects to achieve revenue in the range of $22 to $24 million for its fiscal year ended May 31, 2007, gross margin of 20% for the year and positive cash flow from operations by the fourth quarter ended May 31, 2007.
“Based on the strong industry fundamentals and robust sales backlog, we are very excited about our future. We look forward to introducing our SolarSave® PV products to new markets, commercializing Sun Cone™ CSP in 2007, and pursuing new strategic acquisitions to expand portfolio of our renewable energy technologies. We believe we have raised sufficient financial resources to fully capitalize on solar energy opportunities and to achieve strong revenue growth and profitability, and create long-term shareholder value,” concluded Mr. Saltman.
About Open Energy
Open Energy Corporation (OTC BB: OEGY) focuses on the development and commercialization of renewable energy products and technologies for a wide range of applications including electrical and thermal power production and water desalination. The Company pursues these objectives through technology innovation, acquisitions, strategic partnerships and other business strategies. The company's mission is to enhance life by harnessing the power of the sun.
Safe Harbor for Forward Looking Statements
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to, the performance of our management team, market acceptance of our products, our ability to consummate the sales in our pipeline which includes projects in various points in the sales cycle, entry of competitors, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, potential technical or manufacturing difficulties that could delay product deliveries or increase costs, and other risks identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding other potential risks and uncertainties, see the "Risk Factors" section of the company's Form 10-KSB for the year ended May 31, 2006. Open Energy Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.
CONTACT:
Integrated Corporate Relations, Inc.
John Mills (Investor Relations)
(800) 250-2610
jmills@icrinc.com
James McCusker (Media)
203-682-8245
jmccusker@icrinc.com
No comments:
Post a Comment