MicroPlanet Reports Annual Results for 200530 March 2006
MicroPlanet Technology Corp. (TSXV:MP) ("MicroPlanet" or the "Company"), a developer of distributed-energy technologies to improve electric power grid reliability and efficiency reports annual financial results for the year ended December 31, 2005. All dollar figures are reported in U.S. currency.
2005 Business Highlights:
- MicroPlanet reports revenues of US$863,719 up 912% from 2004.
- MicroPlanet ships 500 HVRs to the Northwest Energy Efficiency Alliance
(the "Alliance") as part of a large-scale technology transfer project
in the U.S. Pacific Northwest.
- MicroPlanet announces a US$275,000 product deployment program with
SP Power Systems Ltd, a part of ScottishPower plc to jointly introduce
MicroPlanet's point-of-consumption electronic voltage regulators to
the Distribution Network Operators in the United Kingdom. The
installation of 100 MicroPlanet Low Voltage Regulator(TM) (LVR (TM))
units is planned for an extended UK pilot, commencing with the
ScottishPower deployment.
- MicroPlanet announced the launch, and installation of its Enterprise
Voltage Regulator 3-Phase(TM) (EVR 3P(TM)) at select commercial
locations in Asia to reduce electricity costs for a multinational
convenience store chain with 27,000 locations worldwide.
- The Sacramento Municipal Utility District (SMUD) in conjunction with
the American Public Power Association (APPA) conducted a series of
tests on the energy efficiency potential of MicroPlanet's point-of-
consumption voltage regulators at the Davis Energy Group test
facility. The results of those tests were published in first quarter
of 2006 and indicated that MicroPlanet's products reduced energy
consumption on air conditioning loads by 7% - 10%.
"In 2005, MicroPlanet established the foundation for numerous possible commercial business opportunities," said Brian Reidy, CEO of MicroPlanet.
Reidy continues, "Through the agreement with a global convenience store chain, our EVR 3Ps(TM) have been installed at select stores as part of MicroPlanet's initial product launch to evaluate the impact on the customer's electricity costs. The evaluation is expected to last into the second quarter of 2006."
"Our initial sale and agreement with SP Power Systems Ltd. to develop MicroPlanet LVRs(TM) for use on the ScottishPower network in the U.K., and to deploy and demonstrate how distributed electronic voltage regulation technology could improve the effectiveness of an existing distribution infrastructure and provide guidance in securing relevant regulatory and European Union safety agency approval is another significant commercial opportunity for our Company," said Reidy.
"We are also pleased to have closed on an equity financing this month which has provided MicroPlanet with ample cash reserves to exercise its current business plan in 2006 and beyond. The Company remains substantially debt free," said Reidy.
Revenues for the year ended December 31, 2005 (the "Year") were $863,719 compared to $85,310 during the same period in 2004 (the "Prior Year").
Gross margin for the Year was a loss $98,941 compared to a gain of $4,894 during the Prior year. Gross margin was impacted by cost of sales for the Year increasing to $962,660 compared to $80,416 during the Prior Year. Cost of sales consists primarily of direct labour and product costs associated with the installation and trial of MicroPlanet products at customer sites. Cost of sales exceeds revenue in 2005 because the price charged to the Alliance for HVRs was less than the manufactured cost. The Alliance was charged a price lower than the current list price because it is conducting a pilot program that management believes will be instrumental in confirming and documenting the electricity savings of its devices. In addition, eleven utilities in the U.S. Pacific Northwest are participating in the project, which provided the Company with immediate access to several potential customers.
Expenses for the Year increased by 13% to $2,611,799 compared to $2,304,469 during the Prior Year. Expenses include the cost of research and development of the MicroPlanet technology and related products, identifying and developing potential markets for the products and other related activities. The increase in expenses for the year is related to the ongoing development and commercialization of MicroPlanet's technology and the related products.
Net loss for the Year was $2,667,303 or $0.16 loss per share (basic and diluted) compared to a net loss of $2,296,386 or $0.56 loss per share (basic and diluted) during the Prior Year.
MicroPlanet's financial information for the years ending December 31, 2005 and 2004 along with the accompanying Management's Discussion and Analysis for the same period are available on SEDAR (www.sedar.com).
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2005 Financial Highlights:
Audited-
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Income Statement $US 2005 2004
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Revenue $ 863,719 $ 85,310
Gross margin $ (98,941) $ 4,894
Total expenses $ 2,611,799 $ 2,304,469
Net loss $ (2,667,303) $ (2,296,386)
Basic and diluted loss per share $ (0.16) $ (0.56)
Weighted average shares outstanding 16,685,508 4,135,115
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Balance Sheet $US 2005 2004
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Cash/Deposits $ 1,790,202 $ 336,974
Current assets $ 2,098,567 $ 885,966
Total assets $ 2,226,021 $ 932,133
Current liabilities $ 592,876 $ 2,905,177
Convertible note $ - $ 489,040
Shareholders' equity $ 1,618,902 $ (2,477,035)
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About MicroPlanet Technology Corp.
Based in Seattle, Washington, MicroPlanet is a distributed-energy technologies company that offers least-cost energy solutions for utilities and customers to promote more reliable power delivery and electrical energy conservation. The Company manufactures and markets a proprietary line of electronic voltage regulation products. MicroPlanet's Low Voltage Regulator(TM) (LVR(TM)), High Voltage Regulator(TM) (HVR(TM)), Enterprise Voltage Regulator(TM) (EVR(TM)) and Enterprise Voltage Regulator 3P(TM) (EVR 3P(TM)), regulate the voltage delivered to a business or home, reducing the amount of electricity needed. MicroPlanet's voltage compliance products provide electric utilities a new tool for peak load reduction, conservation, low voltage mitigation and an interface for distributed generation.
MicroPlanet is a public company whose common shares are listed for trading on TSX Venture Exchange (TSXV) under the symbol: "MP". The Company has approximately 26.4 million common shares outstanding. Visit MicroPlanet at: www.microplanet.com and www.investorfile.com.
MicroPlanet is a trademark of MicroPlanet. All other trademarks and registered trademarks are those of their respective companies.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD- LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
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%SEDAR: 00020555E
For further information: MicroPlanet Company Contacts: Brian Reidy, President & Chief Executive Officer, Tel: (206) 625-0851, dbreidy@microplanet.com; Andy Larson, Chief Financial Officer, Tel: (206) 625-0851, alarson@microplanet.com; MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222, gwimmer@investorfile.com
Source: newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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