PENNINGTON, N.J., Aug. 13, 2007 (PRIME NEWSWIRE) -- WorldWater & Solar Technologies Corp. (OTCBB:WWAT), developer and marketer of proprietary high-horsepower solar systems, today announced results for the second quarter and six months ended June 30, 2007.
Financial Results
Revenue for the second quarter was $2.2 million, compared with $1.8 million reported in the second quarter of 2006. Gross profit for the quarter was $0.3 million in each of the two years. Net loss for the second quarter of 2007 was $2.8 million, or $(0.02) per share, compared to a loss of $2.0 million, or $(0.01) per share, in the second quarter of 2006. The 2007 second quarter reflects an increase in marketing and sales expense tied to the Company's aggressive growth goals.
For the six months ended June 30, 2007, WorldWater reported revenue of $3.2 million, compared with $3.7 million for the first six months of 2006. Gross profit year to date was $0.5 million, versus $0.4 million in the prior-year period. Net loss for the first two quarters of 2007 was $4.9 million, or $(0.03) per share, compared to a loss of $5.5 million, or $(0.04) per share, last year.
"WorldWater remains positioned for strong growth in the coming quarters with major projects, and we expect the last half of 2007 to show double-digit revenue growth over last year. Our strategy of pursuing - and winning - large, complex solar power installations is succeeding, but we are seeing quarterly shifts as a result, with some business backing into later quarters than anticipated, from 2007 to 2008. This causes our earlier guidance for 2007 to be revised from $30 to $34 million to $25 to $30 million. The business is there but will be implemented over a longer schedule," said Quentin T. Kelly, Chairman and CEO. "We have a $200 million pipeline of potential contracts plus additional large, pending projects. We believe WorldWater has the unique, proprietary technology and resources to offer the most cost-efficient solutions to a world demanding clean, renewable energy."
During the second quarter, the Company announced a number of initiatives that are transforming its business, most notably the Letter of Intent with M&G Promociones de Vivienda Urbana S.A. to build several solar farms in Lorca, Spain over the next five years. M&G plans to build up to 130 MegaWatt (MW) of generating capacity, and we look forward to concluding negotiations and finalizing contract details this fall. In addition, WorldWater recently broke ground on the 20-year, 2 MW solar power installation at Fresno Yosemite International Airport, which will be the world's largest airport solar system. "We are growing - and our growth is registering in the market place," Mr. Kelly said. "I think this was reflected by WorldWater's invitation from the State of California to accompany Governor Schwarzenegger on his recent tour of Canada to investigate areas for collaboration with Canadian companies in alternative energy solutions."
Also during the quarter, WorldWater signed a strategic Memorandum of Understanding with Solargenix, a leading provider of innovative solar thermal energy solutions, to jointly market PV electric and thermal heating technologies. "WorldWater also signed a revised Letter of Intent with ENTECH this past quarter and began engineering for the manufacturing line of ENTECH 20x concentrator panels for delivery of product in early 2008," Mr. Kelly continued. "Our latest proxy, dated August 3, as well as this second quarter's form 10-Q, describes the terms of the agreement with ENTECH and outlines the procedures for a special meeting of shareholders to occur as soon as practicable after review by the SEC. While we cannot be certain when this will take place, we are optimistic that it will be completed by the early part of the fourth quarter. We and ENTECH are committed to completing the acquisition."
About WorldWater & Solar Technologies Corp:
WorldWater & Solar Technologies Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that can drive motors and pumps up to 1000 hp and provides solutions to a broad spectrum of the world's electricity and water supply problems, including the capability of driving 1000 hp motors and pumps from sunshine independently or in conjunction with the electric grid. For more information about WorldWater & Solar Technologies Corp., visit the website at www.worldwater.com.
The WorldWater & Solar Technologies logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=1629
Forward Looking Statements:
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB and its quarterly reports on Form 10-QSB both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.
WORLDWATER & SOLAR TECHNOLOGIES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(UNAUDITED)
Three Months Six Months
-------------------------- --------------------------
6/30/07 6/30/06 6/30/07 6/30/06
------------ ------------ ------------ ------------
Revenues:
Contract $ 2,238,064 $ 1,700,902 $ 3,187,341 $ 3,599,079
Grant $ -- $ 85,650 $ -- $ 144,422
------------ ------------ ------------ ------------
Total 2,238,064 1,786,552 3,187,341 3,743,501
------------ ------------ ------------ ------------
Cost of
Revenues:
Contract $ 1,900,799 $ 1,433,796 $ 2,650,685 $ 3,230,031
Grant $ -- $ 75,623 $ -- $ 105,423
------------ ------------ ------------ ------------
Total 1,900,799 1,509,419 2,650,685 3,335,454
------------ ------------ ------------ ------------
Gross Profit
(Loss):
Contract $ 337,265 $ 267,106 $ 536,656 $ 369,048
Grant $ -- $ 10,027 $ -- $ 38,999
------------ ------------ ------------ ------------
Total 337,265 277,133 536,656 408,047
------------ ------------ ------------ ------------
Gross Profit
Percentage 15.1% 15.5% 16.8% 10.9%
Operating
Expenses:
Marketing,
general and
administrative
expenses $ 3,005,812 $ 1,704,251 $ 5,305,434 $ 3,654,815
Research and
development
expense $ 70,023 $ 62,548 $ 117,501 $ 151,281
------------ ------------ ------------ ------------
Total
Expenses 3,075,835 1,766,799 5,422,935 3,806,096
------------ ------------ ------------ ------------
Loss from
Operations (2,738,570) (1,489,666) (4,886,279) (3,398,049)
------------ ------------ ------------ ------------
Other (Expense)
Income
Debt sourcing
fees and
commissions $ -- $ (36,253) $ -- $ (194,563)
Warrant
exercise
inducement
fees $ -- $ (352,380) $ -- $ (1,343,988)
Interest
Income/
(Expense),
Net $ (36,990) $ (85,855) $ (19,343) $ (603,152)
------------ ------------ ------------ ------------
Total Other
(Expense)
Income, Net (36,990) (474,488) (19,343) (2,141,703)
------------ ------------ ------------ ------------
Net Loss (2,775,560) (1,964,154) (4,905,622) (5,539,752)
Accretion of
preferred
stock
dividends $ (11,250) $ -- $ (22,500) $ --
Net Loss
Attributable
to Common
Shareholders $ (2,786,810) $ (1,964,154) $ (4,928,122) $ (5,539,752)
============ ============ ============ ============
Net Loss
applicable per
Common Share
(basic and
diluted) $ (0.02) $ (0.01) $ (0.03) $ (0.04)
============ ============ ============ ============
Weighted Average
Common Shares
Outstanding used
in Per Share
Calculation 163,575,474 135,434,842 157,477,496 127,982,545
============ ============ ============ ============