16.8.2006: Meldung: WorldWater & Power Announces Q2 Results

WorldWater & Power Corp., developer and marketer of proprietary high-power solar systems, reported financial results for the second quarter and six months ended June 30, 2006.

Operational Highlights

* Began work on the company"s largest project to date, the $7.8 million Farm ACW avocado ranch project in Fallbrook, CA. Construction for the system, approximately one megawatt in size, is anticipated to be completed in the fourth quarter of this year or early in 2007. Farm ACW is a leading avocado grower with over 50,000 trees, which will likely become the largest farming operation in the world to be powered by solar energy.
* Started several other new projects, including for Voorhees Township Public Schools, Eagle Academy, and Akins Mansion.
* Completed the installation of Eagle Academy, DuPont, and the Road Runner tree farm.
* Entered into a letter of intent to acquire ENTECH, a leader in advanced concentrating solar technology that allows for the installation of massive solar farms - using greatly reduced requirements for silicon and other solar cell materials, driving down the cost of ownership.
* On track for record sales in 2006, with third quarter revenue forecast to be in the range of $5-$6 million.
* Record Gross Margin--15.5%, an increase from 7% in the first quarter.

"This quarter, WorldWater took a number of decisive steps, strategically and operationally, to improve our performance for the remainder of 2006," stated Quentin T. Kelly, Chairman of WorldWater & Power Corp. "Most importantly, we started construction of the Farm ACW solar irrigation project in California, which is now on track and expected to be nearly complete by the end of 2006. This $7.8 million system, the largest of its kind, solidifies WorldWater"s position as a leading player in the solar field, paving the way for similar deals that can leverage our capabilities in solar technology, energy conversion, and high-horsepower pumps. In addition, we signed a letter of intent to acquire ENTECH, a developer and manufacturer of advanced concentrating solar photovoltaic and thermal technologies, on July 10, 2006. We are very excited about the prospects offered by ENTECH"s technology, and the due diligence is proceeding as scheduled. With the combination of WorldWater and ENTECH, solar installations will be capable of generating and delivering electrical and thermal energy on site at costs competitive to current retail prices, without the need for rebates. WorldWater and ENTECH are already working together on a number of joint bids for large solar farms, with strong demand anticipated going forward.

"Also just after the end of the quarter, WorldWater hired a new CFO, Larry Crawford, to focus on the increased financial reporting requirements of the company while providing direction on a number of growth initiatives. This has enabled our prior CFO, Jim Brown, to concentrate on streamlining and accelerating the financing process for numerous projects in our backlog.

"We are very confident of the projects now underway and forecast third quarter revenue of between $5-$6 million, the largest in the company"s history, with even greater revenue anticipated in the fourth quarter. Given current geopolitical events and the continued high price of oil, we see increasing demand for solar applications that can provide long-term energy independence, and we are focused on meeting these demands while improving returns for our shareholders. With an active pipeline of proposals and our pending acquisition of ENTECH, we view the remainder of 2006 very positively, positioning us for even greater growth - and improved performance - in 2007."

Financial Results

Revenue for the second quarter was $1.8 million, compared with $0.2 million reported in the second quarter of 2005. Gross profit for the quarter was $0.3 million or 15.5% gross margin, versus a loss of $(0.1) million in the prior-year period. The company posted an operating loss of $(1.5) million compared with an operating loss of $(1.2) million in the second quarter of 2005, representing increased marketing costs and stock compensation expense. Including the impact of warrant fees, WorldWater"s net loss for the second quarter was $(2.0) million, or $(0.01) per share, compared to $(1.5) million, or $(0.02) per share, in the prior-year period.

For the first six months of fiscal 2006, WorldWater reported revenue of $3.7 million, versus $0.2 million in the same period last year. Gross profit was $0.4 million for the first two quarters of 2006, as compared with a loss of $(0.2) million in 2005. WorldWater"s net loss for the period was $(5.5) million, or $(0.04) per share, versus a net loss of $(2.8) million, or $(0.03) per share, last year.

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 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.

WORLDWATER & POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2006 AND DECEMBER 31, 2005

June 30, December 31,
2006 2005
------------- -------------
(Unaudited) *
Assets

Current Assets:
Cash and cash equivalents $ 576,155 $ 798,649
Restricted cash and cash equivalents 259,036 12,143
Accounts receivable, net of allowance for
doubtful accounts of $69,908 as June 30,
2006 and December 31, 2005 1,153,623 354,739
Accounts receivable, related party 22,500 32,426
Inventory 441,465 383,722
Costs and estimated earnings/losses in
excess of billings 945,029 466,985
Prepaid expenses and deposits 1,337,977 109,104
Advances to employees 5,946 17,282
------------- -------------
Total Current Assets 4,741,731 2,175,050

Equipment and Leasehold Improvements, Net 115,708 50,615

Intangible And Other Assets
Loan origination costs, net 103,125 287,688
Other intangible assets, net 89,667 109,667
Deposit on proposed acquisition 500,000
Other deposits 11,444 41,384
------------- -------------
Total Assets $ 5,561,675 $ 2,664,404
============= =============

Liabilities and Stockholders" Deficiency

Current Liabilities:
Accounts payable and accrued expenses $ 2,840,449 $ 2,288,607
Long-term debt and notes payable, current
portion 461,287 769,180
Customer deposits 1,863,623 89,719
REC guarantee liability, current portion 73,976 87,220
Billings in excess of costs and estimated
earnings/losses 97,599 31,802
Notes payable, related parties 33,156 35,748
Accrued losses on construction in progress 31,316 155,090
------------- -------------
Total Current Liabilities 5,401,406 3,457,366

Long-term debt and notes payable 727,538 2,759,446
REC guarantee liability, net of current
portion 315,772 329,351
------------- -------------
Total Liabilities 6,444,716 6,546,163
------------- -------------

Commitments and contingencies - -

Convertible redeemable preferred stock
Series C convertible redeemable preferred
stock 625,000 -
------------- -------------
Total Convertible Redeemable Preferred
Stock 625,000 -
------------- -------------

Stockholders" Deficiency:
Preferred Stock Convertible $.01 par value
authorized 10,000,000; issued and
outstanding: Series B 7%- 611,111 shares
liquidation preference $550,000 as of
June 30, 2006 and December 31, 2005 6,111 6,111
Common Stock, $.001 par value; authorized
200,000,000; 140,163,853 issued and
outstanding at June 30, 2006 and
108,786,949 issued and outstanding at
December 31, 2005
140,164 108,787
Additional paid-in capital 41,760,197 33,893,104
Deferred compensation (30,000) (45,000)
Accumulated deficit (43,384,513) (37,844,761)
------------- -------------
Total Stockholders" Deficiency (1,508,041) (3,881,759)
------------- -------------

Total Liabilities, Convertible Redeemable
Preferred Stock and Stockholders"
Deficiency $ 5,561,675 $ 2,664,404
============= =============


The Notes to Condensed Consolidated Financial Statements are an
integral part of these statements.

* Derived from audited financial statements.


WORLDWATER & POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)

Three Months Six Months
-------------------------- --------------------------
6/30/06 6/30/05 6/30/06 6/30/05
------------- ------------ ------------- ------------
Revenues:
Contract $ 1,700,902 $ 200,706 $ 3,599,079 $ 200,706
Grant 85,650 16,457 144,422 32,900
------------- ------------ ------------- ------------
Total 1,786,552 217,163 3,743,501 233,606
------------- ------------ ------------- ------------

Cost of Revenues:
Contract 1,433,796 336,276 3,230,031 336,276
Grant 75,623 - 105,423 -
Loss on
renewable energy
certificates - - - 59,290
------------- ------------ ------------- ------------
Total 1,509,419 336,276 3,335,454 395,566
------------- ------------ ------------- ------------

Gross Profit
(Loss):
Contract 267,106 (135,570) 369,048 (194,860)
Grant 10,027 16,457 38,999 32,900
------------- ------------ ------------- ------------
Total 277,133 (119,113) 408,047 (161,960)
------------- ------------ ------------- ------------

Operating Expenses:
Marketing,
general and
administrative
expenses 1,704,251 1,010,574 3,654,815 1,929,664
Debt sourcing
fees and
commissions 36,253 52,895 194,563 106,127
Research and
development
expense 62,548 33,195 151,281 76,015
------------- ------------ ------------- ------------
Total Expenses 1,803,052 1,096,664 4,000,659 2,111,806
------------- ------------ ------------- ------------
Loss from
Operations (1,525,919) (1,215,777) (3,592,612) (2,273,766)
------------- ------------ ------------- ------------

Other (Expense)
Income
Warrant exercise
inducement fees (352,380) - (1,343,988) -
Interest expense,
net (179,105) (280,224) (699,963) (567,285)
Other income, net 93,250 1,336 96,811 1,657
------------- ------------ ------------- ------------
Total Other
(Expense)
Income, Net (438,235) (278,888) (1,947,140) (565,628)
------------- ------------ ------------- ------------
Net Loss $ (1,964,154) $(1,494,665) $ (5,539,752) $(2,839,394)
============= ============ ============= ============


Basic and diluted
net loss per
share $ (0.01) $ (0.02) $ (0.04) $ (0.03)
============= ============ ============= ============

Weighted Average
Common Shares
Outstanding used
in Per Share
Calculation 135,434,842 85,475,600 127,982,545 83,312,259


The Notes to the Condensed Consolidated Financial Statements are an integral part of these statements.


Contact:

WorldWater & Power:
Jessie Sullivan, 609-818-0700 ext.20
JSullivan@worldwater.com
Aktuell, seriös und kostenlos: Der ECOreporter-Newsletter. Seit 1999.
Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x