Premier Power Reports Record Q2 2011 Revenues of $26.6 Million

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Premier Power Renewable Energy, Inc. (OTCBB:PPRW), a global leader in the development, design, engineering, and construction of solar power systems for commercial, government, and utility markets globally today announced results for its first quarter ended June 30, 2011. Revenue for the second quarter of 2011 increased 194% to $26.6 million, up $17.5 million from $9.0 million achieved in the same period last year. Second quarter revenues were driven by strong performance from the company’s North America and European business segments that was enhanced by the continued expansion in to Eastern Europe and the stability of the new Italian Feed-In-Tariff. North American segment recorded revenue of $9.9 million in the second quarter, up $8.9 million as compared to the same period in 2010. This growth was largely driven by the expansion of our commercial projects offset by the elimination of our residential business line. Our European segments recorded revenue of $16.7 million, up $8.6 million and 108% as compared to the same period in 2010. Revenue from our Italian segment was $8.3 million, up from $3.4 million in the same period in 2010. Revenue from our Other European segment was $8.4 million, up from $4.6 million in the same period in 2010. “We are proud that we continue to see revenue growth in the ever changing solar market. With this revenue growth we are focused on reaching profitability and are making every effort to accomplish this,” said Dean Marks, chairman and chief executive officer of Premier Power. “In particular we are proud of the completion a 2MW solar plant in Southern Italy; a 2MW commercial project in the Los Angeles basin in the second quarter; and a 3.1MW school district in Colorado.” Non-GAAP operating loss, excluding share-based compensation and amortization of intangibles, decreased to $1.5 million for the second quarter of 2011 from a Non-GAAP operating loss, excluding share-based compensation and amortization of intangibles, of $1.6 million for the comparable period in 2010. Included in the second quarter of 2011 included several nonrecurring charges amounting to approximately $0.4 million related to the write-off of one European project and legal fees associated with a potential acquisition that was not completed. “Our operating expenses, excluding share-based compensation and amortization of intangibles, have continued to decrease as we continue to streamline our operations,” said Frank J. Sansone, chief financial officer of Premier Power. “We look at the upcoming third quarter as a very positive sign for the company as we expand our efforts in to Eastern Europe and progress on several high profile North American projects.” In the second quarter, the Company received a strategic investment. The Company issued 2,350,000 shares of Series C Stock, a warrant to purchase 2,000,000 shares of the Company’s common stock (“Series C warrant”) and a six month option to acquire 250,000 additional shares of the Series C Stock (“Series C Option”) in exchange for $2,350,000. The Company incurred expenses of $250,000 related to the offering, resulting in net proceeds of $2,100,000. The Series C Stock is convertible into shares of the Company’s common stock and have a stated value equal to $1.30 and a conversion value of $1.00 per share. At the time of closing the Company’s stock price was $0.69 per common share. 2011 Financial Outlook: The company reaffirms its revenue guidance for the year ended December 31, 2011, revenues in the range of $100 million to $120 million, representing year-over-year growth of 15% - 38%. Raising capital remains an important component to Premier Power meeting its 2011 financial outlook as we continue to focus our efforts in the North American and emerging solar markets.