1.12.2005: Meldung: WorldWater & Power Corp. Issues Operational Update
"I am eager to share with you our progress since my last operational update issued on June 20, 2005. In the first six months of 2005, WorldWater & Power"s contract backlog was $12.6 million in sales. As a result of increasing demand for our products and services, our current contract backlog has increased to $23 million. We anticipate adding to our current backlog through the remainder of 2005 and look forward to strong demand for our product and services in 2006 and beyond.
"I would like to take this time to discuss significant highlights over the last several months:
"Status of Projects: As of June 20, WorldWater & Power signed contracts consisting of seven projects totaling $12.6 million. The following summarizes the status of each project:
-- $1,800,000 for a California Tree Farm. Pre-engineering has been
completed. Groundbreaking is scheduled for the fourth quarter 2005.
-- $3.25 million joint venture with Conti Corp. for Atlantic County
Utilities Authority (ACUA). The project is scheduled for partial
completion in the fourth quarter. Final construction should be
completed in the first quarter of 2006.
-- $7.8 million solar installation for Farm ACW of Fallbrook, California.
Ground breaking is scheduled for the fourth quarter 2005.
-- $309,000 for the Idyllwild Water District (IWD) in Idyllwild,
California. The project is scheduled to be completed in the fourth
-- Three residential projects totaling $400,000. All three projects are
scheduled to break ground in the fourth quarter.
"Quantum Energy Group acquisition: The Company realizes that with strong growth comes the need for additional infrastructure. Quantum Energy Group, an energy, construction, and project management company acquired by WorldWater & Power in September this year, greatly enhances our ability to efficiently manage our growing customer base. Quantum brings extensive experience in engineering, design and construction of more than 400 solar projects. With this addition to our team, WorldWater expects to make significant advances in bringing projects to completion on a more timely basis and within budget, resulting in an overall improvement to our gross margins. The acquisition of Quantum Energy was our main focus in the third quarter to better position the Company to handle the emerging implementation volume. The integration of the two companies has been very smooth and we are already realizing the benefits.
"Sales & Marketing - Domestic: We have made significant progress in strengthening our sales team, both on the West and East Coasts, for commercial, industrial and residential business opportunities. I am excited by the significant increase of business activity as referenced above, and I believe that with our current backlog we are now well positioned to expand and drill deeper into these markets.
"Sales & Marketing - International:
Sri Lanka: WorldWater & Power received a U.S. Trade & Development Agency (USTDA) grant in the amount of $360,000 to support a pilot project for water supply in Sri Lanka. The project is designed to assess solar technology methods to provide safe, sustainable water supplies to people in six villages near the tsunami-ravaged southern coast of Sri Lanka. We currently have a team in Sri Lanka working the first stage of the assessment, and we are actively seeking the award of the full contract of $1.1 million in 2006. In addition, we are currently pursuing other projects there and are optimistic that our presence in Sri Lanka will result in additional business opportunities for the Company in the region. I believe the market for our products and services in developing countries, which have huge populations not tied to the electric grid, represents large future revenue and earnings.
"China: On June 21st we signed a representative agreement with Xinhua Financial Network to represent WorldWater in the Chinese water and energy markets. We see China as an important and viable future market for our proprietary solar power and water engineering.
"Financing & Recapitalization: On July 26th we announced the completion of a $4,000,000 financing with CAMOFI Master LDC, plus $450,000 received through the exercise of warrants. Through stock conversions, we reduced our long-term debt by $900,000 and eliminated a near-term note - from $1,000,000 to zero. We have received $3,000,000 from the CAMOFI transaction and expect shortly to receive the remaining $1,000,000.
"Mobile MaxPure(TM): This specially designed portable solar power and water purification unit was sent to Waveland, Mississippi to provide clean water for hurricane victims.
"E.I. DuPont de Nemours: Received first solar project for DuPont. WorldWater & Power Corp. will provide solar energy for the photovoltaic solutions technology laboratory in Wilmington, Delaware. The system will serve as a Photovoltaic Demonstration Unit for DuPont. General Electric Solar, a division of General Electric, will be the supplier of the photovoltaic panels.
"Revenue Guidance: The majority of revenue we had anticipated to be recognized in the fourth quarter will be pushed into 2006. There were several reasons for the bottleneck that we experienced. For example, Farm ACW, our largest contract to date ($7,800,000) experienced a very long permitting and approval period from both state and local authorities for securing grid interconnections. Both Idyllwild (IWD) and the ACUA installations, where whole new solar engineering methods needed to be introduced, experienced additional engineering designs. Both projects are now in the completion stage and will serve as centerpieces for the Company for the utility markets on both the West and East Coast. These issues have been significantly improved with the acquisition of Quantum Energy along with the reorganization of our engineering and project management procedures.
"Let me conclude by saying that WorldWater & Power has made great strides this year. We are experiencing the momentum of growing demand for our products and services, with a critical mass aiding in the focus on gross margins of profit. We are gaining international recognition in solar engineering and design by completing a number of industry landmark installations. We look forward to the future with confidence and great anticipation."
About WorldWater & Power Corp:
WorldWater & Power Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world"s electricity and water supply problems. For more information about WorldWater & Power Corp., visit the website at http://www.worldwater.com.
Forward Looking Statement
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.
Rose Mary Schwarz
WorldWater & Power Corp.
Phone: 609-818-0700, ext. 33
Denise Roche / Jason Rando
The Ruth Group
Phone: 646-536-7008 / 7025
Source: WorldWater & Power Corp.