19.11.2004: Meldung: WorldWater Reports Third Quarter Financial Results
WorldWater & Power Corporation, maker of high-horsepower solar energy systems, today announced financial results for its third quarter and the nine months ended September 30, 2004.
Revenue for the quarter ended September 30, 2004 was $61,040, compared to $76,817 in revenue for the quarter ended September 30, 2003. Revenue for the nine-month period ended September 30, 2004 was $4,217,514, compared to $1,224,078 for the comparable period in 2003, an increase of 245%. The Company sustained a net loss of $2,262,016 for the quarter ended Sept. 30, 2004, compared to a net loss of $1,232,707 for the same quarter last year.
For the nine months ended Sept. 30, 2004 and 2003, the Company has incurred a net loss of $5,861,209 and $2,848,113, respectively.
The company started and completed the engineering and essential construction phases of the $2 million Seley Citrus Ranch project in California in the third quarter but could not recognize any portion of that sum as revenue because the company"s completed contract revenue recognition accounting policy only allows booking of revenues upon project completion, stated Quentin T. Kelly, WorldWater Chairman and CEO. That serving utility, San Diego Gas & Electric, has now notified Seley that the project is authorized to interconnect with the electric grid, thus achieving the accounting milestone required to record the revenue in the fourth quarter.
"The Company has generated record revenue this year, as evidenced by the significant increase in the year-to-date results," said Mr. Kelly. "We have now put into place several important solar power projects that have demonstrated the commercial viability of our solar power products and services, and are beginning to realize the market potential of our proprietary technologies."
As noted above, WorldWater recorded modest revenues in the quarter ended September 30, 2004, a result of the Company"s conservative completed contract revenue recognition accounting policy. WorldWater booked the majority of its nine-month 2004 revenue in the second quarter, and expects to show another significant increase in the fourth quarter ending December 31, 2004.
In addition to not reporting any Seley project revenues in the third quarter, the Company recorded an anticipated loss of $394,000, attributable to a valuation guarantee of Renewable Energy Credits (REC"s) to be generated by the Seley Ranch project. The REC market in the state of California is evolving now and is not yet well established and liquid. In other states, including New Jersey, the REC market is trading as high as $0.175 per Kilowatt hour.
In a separate announcement, the Company declared that because of its revenue growth in 2004 and its expected continued growth in 2005, WorldWater has determined at this time not to exercise its call on an additional $3.64 million option available from investment bank SBI USA. The Company has now drawn down two full tranches of its original equity option from SBI USA totaling $2.3 million.
About WorldWater & Power Corp.
WorldWater & Power Corp. is a full-service, international solar engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world"s water supply and energy problems. The Company"s recently patented AquaMax(TM) solar pumping systems are capable of driving motors up to 600 horsepower. For more information about WorldWater, visit the website at www.worldwater.com, or for investor-specific information, www.trilogy-capital.com.
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.
Debra J. Grady, 609-818-0700, ext. 14
Trilogy Capital Partners
Paul Karon, 800-342-1467
Source: WorldWater & Power Corporation