24.4.2003: Meldung: Solar Energy Systems:Third Quarter Report

Solar Energy Systems Ltd reports cash receipts of $751,000 for the period January to March 2003. This was significantly below internal budgets, but just $7,000 short of the record December quarter of $758,000.

A major factor affecting revenues were delays in production caused by supplier delays, in particular delays in solar panel shipments from Europe. Low inventories for other components resulting from higher than expected sales in the previous quarter also resulted in delays and increased working capital requirements.

Whilst net operating cash flows of ($385,000) were better than forecast, this figure was also adversely affected by panel supplies. A panel invoice of $304,000 was paid during the quarter, which was to cover a shipment approximately 160% above normal shipment levels. Interim air freighted shipments of panels also adversely affected margins for the quarter. Inventories at the end of March were at a record high of $647,915, meaning additional inventory purchase requirements for the coming quarter should be expected to be relatively low.

Focus is now being directed towards the development of an effective inventory management system, which is expected to be in place during the next financial year.

As a large proportion of the sales shipped in the quarter were shipped in the month of March, trade debtors are also at an all time high of $495,000, whilst a similar situation exists for trade creditors with $424,000 owed.

The average monthly cash deficit for the financial year to March is $72,000, approximately half of the figure for the 2001 / 02 year. Other than the factors already mentioned, this is in part due to a reduction in overheads, which at $349,000 were $104,000 below forecast for the quarter. This gives management confidence that the company is well placed to move towards profitability and positive cash flow for the coming financial year.


CONSOLIDATED STATEMENT OF CASH FLOWS

Cash flows related to Current Year to date
operating activities Quarter (9 months)
AUD"000 AUD"000

1.1 Receipts from customers 751 2,076
1.2 Payments for
(a) staff costs (206) (688)
(b) advertising & marketing (71) (178)
(c) research & development (37) (71)
(d) leased assets - -
(e) other working capital (843) (1,814)
1.3 Dividends received - -
1.4 Interest and other items of
a similar nature received 21 60
1.5 Interest and other costs of
finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -

1.8 Net Operating Cash Flows (385) (615)

Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses (item 5) - -
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets (1) (20)
(e) other non-current assets - -
1.10 Proceeds from disposal of:
(a) businesses - -
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets - -
(e) other non-current assets - -
1.11 Loans to other entities - -
1.12 Loans repaid by other entities - -
1.13 Other (provide details if material) - -

Net investing cash flows (1) (20)

1.14 Total operating and
investing cash flows (386) (635)

Cash flows related to financing activities
1.15 Proceeds from issues of
shares, options, etc. - -
1.16 Proceeds from sale of
forfeited shares - -
1.17 Proceeds from borrowings - -
1.18 Repayment of borrowings (6) (18)
1.19 Dividends paid - -
1.20 Other (provide details if material) - -

Net financing cash flows (6) (18)

Net increase (decrease) in cash held (392) (653)

1.21 Cash at beginning of quarter/
year to date 1,902 2,163

1.22 Exchange rate adjustments to item 1.20 - -

1.23 Cash at end of quarter 1,510 1,510

PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES

Current Quarter
AUD"000

1.24 Aggregate amount of payments to
the parties included in item 1.2 45

1.25 Aggregate amount of loans to the
parties included in item 1.11 -

1.26 Explanation necessary for an understanding
of the transactions

Salaries to Directors

NON-CASH FINANCING AND INVESTING ACTIVITIES

2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did
not involve cash flows

n/a

2.2 Details of outlays made by other entities to establish or
increase their share in businesses in which the reporting entity
has an interest

n/a

FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position.
(See AASB 1026 paragraph 12.2)

Amount Amount
available used
AUD"000 AUD"000

3.1 Loan facilities - -
3.2 Credit standby arrangements 20 4


RECONCILIATION OF CASH

Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash flows) AUD"000 AUD"000
to the related items in the accounts
is as follows.

4.1 Cash on hand and at bank 240 142
4.2 Deposits at call - -
4.3 Bank overdraft - -
4.4 Other (provide details) 1,270 1,760

Total: cash at end of quarter (item 1.22) 1,510 1,902



ACQUISITIONS AND DISPOSALS OF BUSINESS ENTITIES

Acquisitions Disposals
(item 1.9(a)) (Item 1.10(a))

5.1 Name of entity - -

5.2 Place of incorporation
or registration - -

5.3 Consideration for
acquisition or disposal - -

5.4 Total net assets - -

5.5 Nature of business - -


COMPLIANCE STATEMENT

1. This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations
Act (except to the extent that information is not required because
of note 2) or other standards acceptable to ASX.

2. This statement does give a true and fair view
of the matters disclosed.

C Middleton
DIRECTOR Date: 28/03/2003