AAER Releases Q1 Results

AAER Inc., ("AAER" or the "Company"), Canada's only original equipment manufacturer of wind turbines of 1 megawatt ("MW") and more, released today its financial results for the quarter ended March 31, 2008. The Company's unaudited interim consolidated financial statements, Management Discussion and Analysis and Annual Information Form are available on the Company's Website at www.aaer.ca and on www.sedar.com.

        Q1 2008 Highlights and Subsequent Events

        -   Concluded an agreement for the delivery of the Company's first 2MW
            wind turbine to Valorem SAS, a French wind farm developer

        -   Concluded a turbine supply agreement worth $3.0 million for the
            delivery of the Company's first 1.5 MW wind turbine to the town of
            Portsmouth, Rhode Island

        -   Concluded a reservation agreement for the delivery of two 1.5 MW wind
            turbines to Windland, a small wind farm project developer in
            California

        -   Established a permanent representation office in Europe with the
            creation of AAER SAS, a French subsidiary partly owned by Valorem SAS

        -   Established a permanent representation office in the United-States
            with the creation of AAER USA Inc. specifically targeting smaller to
            medium size wind farms

        -   Completed a $7.5 million bought deal equity financing to implement
            production plan for 2008

        -   Pursuant to Hydro-Quebec's May 5, 2008, announcement that none of the
            selected wind farm projects for its 2000 MW request for proposals
            ("RFP") had chosen AAER's wind turbines, terms of the financing
            agreement were amended, including the re-pricing of the offering.

        -   Concluded a consulting agreement with leading strategic advisor in
            the European wind industry


"The first quarter was marked by the conclusion of our first sales in the United States and Europe and although our potential clients were not selected by Hydro-Quebec for the planned 2000 MW RFP, the North American market offers many commercial opportunities for the company, and our pipeline of prospects is growing steadily," added Mr. Gagnon. "Our strategy targets small to medium size wind farm projects, which enables us to progressively ramp-up production, reduce execution risks as we reach our full production capacity and allows us to be less reliant upon the outcome of any specific request for proposals."

Financial Results

The Company is currently concentrating all of its efforts on implementing its development strategy, and has not generated any revenue as of March 31, 2008. The results given below are based on material information, and reflect the results for the first quarter of 2008.

AAER's operating expenses for the first quarter of 2008 stood at $1,952,063, compared to $577,772 for the first quarter of 2007. The increase in these expenses is mainly driven by the increase in staff in preparation for the start of production ($649,028 for Q1-2008 compared to $103,977 for Q1-2007), in rent and occupancy charges for the Bromont facility due to increased square footage utilization ($489,103 for Q1-2008 compared to $107,790 for Q1-2007) and in marketing expenses for the significant ongoing commercialisation efforts ($245,068 for Q1-2008 compared to $65,666 for Q1-2007). Given that the Company continues to devote significant effort to its growth, changes in the level of these expenses do not necessarily indicate trends, demand, important events or uncertainties.

Over the course of the quarter, AAER ordered certain critical production equipment and continued the initial steps required to launch production at its Bromont plant - where the Company has been located since the start of 2007. The Company also completed the orders of critical components in order to be in a position to start production in the fall of 2008.

For the quarter ended March 31, 2008, net loss totaled $1,952,063 or $0.02 per share (basic and diluted), compared to $577,772 or $0.01 per share (basic and diluted) for the corresponding period ended March 31, 2007.

As at March 31, 2008, the Company had 83,827,501 common shares issued and outstanding, and $2,319,095 in cash and cash equivalents. As of December 31, 2007, the Company had 82,667,101 shares issued and outstanding and cash and cash equivalents totaling $5,928,246.


About AAER Inc.
AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 Megawatt or more wind turbines principally for the North American market. Its strategy is to progressively build its product's components to provide a high level of reliability and a competitive pricing to its customers. AAER uses proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (AAE). Additional information is available on the Company's Website at www.aaer.ca.

Contact:
AAER Inc., Dave Gagnon, President, Telephone: (450) 534-5155, www.aaer.ca

Source: AAER Inc.

Aktuell, seriös und kostenlos: Der ECOreporter-Newsletter. Seit 1999.
Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x