9.8.2006: Meldung: Carmanah Technologies Corporation: Financial Results für Q2 2006

CARMANAH ANNOUNCES FINANCIAL RESULTS FOR Q2 2006

Victoria, British Columbia, Canada - Tuesday, August 8, 2006 -
Carmanah Technologies Corporation (TSX: CMH) is pleased to announce
its second quarter results for the three and six months ended June
30, 2006 and 2005.

HIGHLIGHTS FOR THE QUARTER

- Record Q2 2006 revenues of $15,844,155, representing a 142%
increase over Q2 2005 and 25% over Q1 2006 at $12,693,769.
- Record 2006 year-to-date revenues at $28,537,924, representing a
151% increase over the same six-month period in 2005.
- Record Q2 2006 orders booked of $16,152,968.
- Sales order backlog of $6,681,294.
- Gross margin at 34% for Q2 2006 and for the six months ending
June 30, 2006.
- Q2 2006 EBITA in the amount of $773,025, representing an increase
of 503% over Q1 2006 at $128,249.
- Q2 2006 net earnings in the amount of $123,543, compared to Q1
2006 loss of $(23,290).

Download financial results:
www.carmanah.com/documents/news_releases/060808_CarmanahRelease.pdf

SUMMARY OF RESULTS

Q2 2006 is trending as per management"s expectations. During the
quarter, Carmanah achieved record revenues of $15,844,155, which
represents growth of 142% over the same quarter in 2005 at $6,542,507
and 25% over Q1 2006 at $12,693,769. The Company also booked a
record $16,152,968 in sales orders and held a significant sales order
backlog of $6,681,294 going into Q3 2006. In addition, gross margins
were stable at 34% and all operating expenses declined as a
percentage of sales.

"The last of the unusual expenses related to our integration of
Soltek Powersource Ltd. and the capital costs associated with
multiple facility moves and improvements were effectively completed
in Q2", states Art Aylesworth, Carmanah"s CEO. "Revenues and profits
are now growing quarter over quarter and we are seeing our operating
expenses decline as a percentage of sales. The past quarter also saw
the Company enjoy several important milestones, including the
successful launch of and orders for our feature-rich A704-5 aviation
light, as well as the follow-on order from London Buses to extend the
system-wide rollout of our solar LED bus stops. In addition, our
solar LED roadway beacons received formal approval from the state of
Florida and our mobile power systems division signed a new channel
partnership agreement with a major US distributor, strengthening our
US routes to market. All of these achievements signal increased
mainstream acceptance of our products, which bodes well for a strong
finish to the year. With the wide range of "unusual" integration and
expansion activities of the past year behind us, management is now
focused on growth, efficiency and profitability initiatives."

OVERVIEW OF OPERATIONS

The growth in Carmanah"s operations, both organically and through
acquisition, has resulted in a broadening of the Company"s business
activities to include the design, manufacture and/or distribution of
three technology groups: solar powered LED lighting, solar power
systems and LED-illuminated signage.

Carmanah"s Solar LED Lighting Group provides a variety of
energy-efficient LED lighting products for marine, aviation, transit,
roadway and industrial worksite applications. The Company"s Solar
Power Systems Group offers a wide range of renewable energy system
solutions for industrial, residential and recreational power
applications. The Company"s LED Sign Group designs and manufactures
energy-efficient LED edge-lit signs for corporate identity,
point-of-purchase and architectural applications.

Carmanah"s headquarters and primary manufacturing and distribution
facilities are located in Victoria, British Columbia, Canada. The
Company also operates additional manufacturing and distribution
facilities in Calgary, Alberta, Canada, as well as regional
distribution and sub-assembly facilities in Barrie, ON; Santa Cruz,
CA; and London, England.

Carmanah currently has more than 250,000 installations in 110
countries. Carmanah"s customer list includes a wide range of
government, commercial and private users worldwide, who are serviced
directly by the Company or one of its regional authorized
distributors and/or sales agents.

RESULTS OF OPERATIONS

Sales

Carmanah"s total revenues for the three months ended June 30, 2006
were $15,844,155, representing a 142% increase over the same period
in 2005 at $6,542,507. Revenues for the six months ended June 30,
2005 were $28,537,924, representing a 151% increase over the same
period in 2005 at $11,392,049.

Solar LED Lighting Group

Revenues from the Solar LED Lighting Group were $5,770,912 in Q2
2006, representing an increase of 12% over Q2 2005 at $5,142,265.
This is not indicative of sales momentum, however, as total orders
booked by the Solar LED Lighting Group for the quarter was
$6,719,976. The differential between orders booked and invoiced
sales is primarily a result of orders in the system with delivery
dates beyond Q2.

Revenues from the Solar LED Lighting Group for the six months ended
June 30, 2006 were $11,097,912, representing an increase of 29% over
the same period in 2005 at $8,585,446. The Solar LED lighting Group
entered Q3 2006 with a sales order backlog of $3,446,525.

Solar Power Systems Group

Revenues from the Solar Power Systems Group amounted to $8,548,354
for the three months ended June 30, 2006, and $14,775,108 for the six
months ended June 30, 2006. This group was acquired in July 2005 and
therefore has no comparatives for the same periods in 2005. The
Solar Power Systems Group entered Q3 2006 with a sales order backlog
of $2,913,698.

LED Sign Group

Revenues from the LED Sign Group were $1,356,497 in sales for Q2
2006, compared to $1,400,242 for Q2 2005. Contributions for the six
months ended June 30, 2006 were $2,246,699, compared to $2,806,603
for the same period in 2005. A significant portion of revenues
achieved by this group are through larger orders, and therefore
quarter-over-quarter results may vary significantly. The LED Sign
Group entered Q3 2006 with a sales order backlog of $321,069.

A summary of revenues from each of Carmanah"s technology groups is as
follows:

Sales Summary
Q1 2006 Q1 2005

Solar LED Lighting $5,327,000 $3,443,181
Solar Power Systems $6,226,754 $ -
LED Sign Group $890,202 $1,406,361
Other income $249,813 $ -
TOTAL $12,693,769 $4,849,542

Q2 2006 Q2 2005

Solar LED Lighting $5,770,912 $5,142,265
Solar Power Systems $8,548,354 $ -
LED Sign Group $1,356,497 $1,400,242
Other income $168,392 $ -
TOTAL $15,844,155 $6,542,507

YTD 2006 YTD 2005

Solar LED Lighting $11,097,912 $8,585,446
Solar Power Systems $14,775,108 $ -
LED Sign Group $2,246,699 $2,806,603
Other income $418,205 $ -
TOTAL $28,537,924 $11,392,049

Cost of Sales and Gross Profit Margin

Carmanah"s cost of sales for the Q2 2006 was $10,496,659 (66% of
sales), resulting in a gross profit margin of 34%, compared with
gross profit margin of 35% for Q1 2006. For the six months ended
June 30, 2006, the Company"s gross profit margin was 34%, compared
with 49% for the same period in 2005. The shift in Carmanah"s gross
margin from 2005 to 2006 is primarily due to the contribution by the
Company"s Solar Power Systems Group for the six months ended June 30,
2006 ($14,775,108 at 24% gross margin).

Carmanah offers product solutions to a variety of market sectors at
various gross profit margins. The blended gross profit margin is
significantly affected by the ratio of sales contributed by the
various technological groups, by the product mix sold, as well as the
related market sector.

Wages and Benefits

As a percentage of revenue, wage and benefit expenses continue to
trend downwards from preceeding periods. For the three months ended
June 30, 2006 wage and benefit expenses were 15%, compared to 21% for
Q2 2005 and 19% for Q1 2006. Wage and benefit expenses for the six
months ended June 30, 2006 were 17%, compared to 20% for the same
period in 2005.

Wage and benefit expenses for the three months ended June 30, 2006
increased 99% to $2,389,990, compared with $1,202,770 for Q2 2005.
For the six months ended June 30, 2006, wage and benefit expenses
increased 116% to $4,824,958, compared with $2,233,269 for the same
period in 2005. This increase is primarily due to the following:

- $1,600K in additional wage expenses resulting from the acquisition
of the Solar Power Systems Group;
- $390K in additional commissions expense resulting from overall
increased sales;
- $274K in additional sales, marketing, finance, purchasing and
administrative staff in support of overall sales growth; and
- $247K in additional stock-based compensation expense.

Office and Administration

As a percentage of revenue, office and administration expenses for Q2
2006 were 6%, compared to 7% for Q2 2005 and 6% for Q1 2006. Office
and administration expenses for the six months ended June 30, 2006
were also 6%, compared to 8% for the same period in 2005.

Office and administration expenses in Q2 2006 were $992,470,
representing a 119% increase over Q2 2005 of $453,658. Office and
administration expenses for the six months ended June 30, 2006 were
$1,801,989, representing an increase of 99% over the same period in
2005 at $904,548. This increase is primarily due to:

- The acquisition of the Solar Power Systems Group in July 2005,
which has no comparatives for the same periods in 2005,
contributed to this increase with the additional costs of its
four sub-assembly and warehouse operations (Victoria, BC, Calgary,
AB, Barrie, ON, and Santa Cruz, CA);

- The expansion into Carmanah"s new 28,000 square foot warehouse
facility, as well as the associated increase in overall office,
administration and information technology expenses; and

- Increased public company-related costs, including a one-time
expense in Q1 2006 in the amount of $117,000 to transfer its
listing from the TSX Venture Exchange to the TSX Toronto Stock
Exchange, as well as an overall increase in regulatory fees and
expenses paid under the new listing.

Sales and Marketing

As a percentage of revenue, sales and marketing expenses for Q2 2006
were 4%, compared to 6% for Q2 2005 and 4% for Q1 2006. Sales and
marketing expenses for the six months ended June 30, 2006 were 4%,
compared to 7% for the same period 2005.

Sales and marketing expenses for Q2 2006 were $632,523, representing
a 51% increase over Q2 2005 of $418,478. Sales and marketing
expenses for the six months ended June 30, 2006 were $1,157,818,
representing a 49% increase over $776,103 for the same period in
2005. The Company continued to increase sales and marketing
activities for new and existing product lines throughout its
worldwide marketplace and is expanding its sales and marketing
efforts to include the Power Systems Group"s customers and verticals.

For the first six months of 2006, the Company attended 56 tradeshows
and industry conferences, compared with 43 similar events during the
same period in 2005.

Research and Development

As a percentage of revenue, research and development expenses for Q2
2006 were 3%, compared to 7% for Q2 2005, and 3% for Q1 2006.
Research and development expenses for the six months ended June 30,
2006 were 3%, compared to 7% for the same period 2005.

During Q2 2006, gross research and development expenses increased 69%
to $820,062, compared with $486,787 for Q2 2005. For the six months
ended June 30, 2006, gross research and development expenses
increased 68% to $1,432,329, compared with $850,012 for the same
period in 2005. The increase in gross research and development
expenses is primarily due to continued investment in new product
development, cost reduction initiatives and existing product
enhancements across all of the Company"s technology groups.

During Q2 2006, a SR&ED investment tax credit in the amount of
$326,361 was booked against total research and development expenses,
resulting in net research and development expenses of $493,701. For
the six months ended June 30, 2006, a SR&ED investment tax credit in
the amount of $526,509 was booked against year-to-date research and
development expenses, resulting in net research and development
expenses of $905,820. There are no comparative SR&ED investment tax
credits for 2005.

Income Tax

Income tax expense for Q2 2006 totaled $357,826. This amount is
comprised of current tax expense of $282,199 and future income tax
expense of $75,627. The current tax expense relates to taxable
income generated by Carmanah in the normal course of operations.
Current tax expense as a percentage of pre-tax earnings is high, as
Carmanah chose to postpone certain tax deductions to use investment
tax credits that offset taxes otherwise payable.

Earnings

Earnings before interest, taxes and amortization (EBITA) for Q2 2006
were $773,025, compared to $447,471 for Q2 2005. For the six months
ended June 30, 2006, EBITA were $901,274, compared to $754,043 for
the same period in 2005.

Non-GAAP measures - the Company uses certain non-GAAP measures to
assist in assessing its financial performance. Non-GAAP measures do
not have any standardized meaning prescribed by GAAP and are
therefore unlikely to be comparable to similar measures presented by
other companies. One such non-GAAP measure used for assessing
financial performance is EBITA. EBITA is calculated as net earnings
before interest income, taxes and amortization. A reconciliation of
EBITA to net earnings is as follows:

Three months ended June 30,
2006 2005

Net earnings - as reported $123,543 $387,217
Add back (deduct):
Interest Income (39,413) (43,499)
Income taxes 357,826 -
Amortization of equipment and
leaseholds 262,986 92,501
Amortization of intangibles 68,083 11,252
------
EBITA $773,025 $447,471

Six months ended June 30,
2006 2005

Net earnings - as reported $100,253 $650,639
Add back (deduct):
Interest Income (118,889) (85,909)
Income taxes 406,777 -
Amortization of equipment and
leaseholds 385,191 167,192
Amortization of intangibles 127,942 22,121
------
EBITA $901,274 $754,043

Net earnings for Q2 2006 were $123,543, compared with $387,217 for Q2
2005. For the six months ended June 30, 2006, net earnings were
$100,253 compared with $650,639 for the same period in 2005.

Carmanah is continuing to focus on maintaining or increasing the
gross margins across all of its technology groups, and continuing to
reduce overall operating expenses as a percentage of sales.

Balance Sheet Highlights

Carmanah"s cash, cash equivalents, and short-term investments at June
30, 2006 were $4,444,241, compared to $11,662,214 at December 31,
2005.

Net cash usage from operations for the six months ended June 30, 2006
was $6,574,852. This is due primarily to:

- $3,840,003 in increased inventory levels in support of increased
sales forecasts, particularly in areas of solar panel supply;

- $882,255 in prepayments to suppliers to secure solar panel product;

- $2,885,056 in increased accounts receivables due to a combination
of sales generated through the Mobile markets booking program
which has extended payment terms and to increased sales growth,
particularly through the latter part of second quarter.

During the six months ended June 30, 2006, Carmanah also invested
$1,387,838 in leasehold improvements and equipment related to setup
and completion of the Company"s new production and warehousing
facility, as well as to improvements to its head office facility in
anticipation of physically integrating Soltek and Carmanah sales and
administration staff. These projects were effectively completed by
the end of Q2 2006. These improvements have prepared Carmanah"s
facilities for the anticipated growth over the next two years. The
Company anticipates no further significant facilities-related
investments in the foreseeable future.

As per the December 2005 financing, management advised that funds
raised would be primarily used for significant infrastructure
improvements, as well as pro-active inventory investment related to
potential supply-side challenges in the photovoltaics market. With
availability of dollars to invest in inventory, management was able
to negotiate supply contracts through to the end of 2007. As a
result, current inventory levels will now be monitored and reduced
where appropriate.

Net working capital as at June 30, 2006 was $26,743,748 with a
current ratio of 5.2:1 and $7,609 of non-current lease obligations.

ABOUT CARMANAH TECHNOLOGIES CORPORATION

Carmanah is an award-winning manufacturer specializing in renewable
and energy-efficient technology solutions. The Company is currently
focused on three technology groups: solar power systems & equipment,
solar-powered LED lighting and LED illuminated signage.

Carmanah is headquartered in Victoria, British Columbia, Canada and
has branch offices and/or sales representation in 11 cities across
Canada, the United States and the United Kingdom. With more than
250,000 installations worldwide, Carmanah is one of the world"s
premier suppliers of energy-efficient products.

The shares of Carmanah Technologies Corporation are publicly traded
on the Toronto Stock Exchange under the symbol "CMH" and on the
Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For
more information, please visit www.carmanah.com.

On Behalf of the Board of Directors
Carmanah Technologies Corporation

"Praveen Varshney"
Praveen Varshney, Director

For further information, please contact:

Investor Relations:
Mr. Mark Komonoski, Director
Tel: (403) 470-8384
Toll-Free: 1-877-255-8483
mkomonoski@carmanah.com

Media:
Mr. David Davies
Tel: (250) 382-4332
ddavies@carmanah.com
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