Distributed Energy Reports Record Revenues, Reduced Net Loss in 2nd Quarter
biz.yahoo.com
Thursday August 4, 4:30 pm ET
WALLINGFORD, Conn., Aug. 4 /PRNewswire-FirstCall/ -- Distributed Energy Systems Corp. (Nasdaq: DESC - News) reported today that revenues rose sharply to $12.2 million for the second quarter ended June 30, 2005, compared with $4.3 million in the same period one year ago. The company narrowed its second quarter 2005 net loss to $4,502,000, or $0.13 per share, from $5,894,000, or $0.17 per share, during the same period in 2004.
Record quarterly revenues primarily reflect strong performance at its Northern Power Systems unit, the company said. Northern Power, along with Proton Energy Systems, merged to form Distributed Energy Systems in late 2003. The combined company provides industrial and commercial markets with products and services offering greater control over the supply and cost of power, as well as increased efficiency and reliability.
"During the quarter, we saw continuing strength in business development and a growing backlog for Northern Power's remote and on-site electric power systems and services," said Chip Schroeder, DESC's president. "Growth, from existing and new customers alike, stems from the rapid progress being made at Northern Power, especially through our offices in California, New York and Texas that were set up to serve the expanding new energy marketplace."
"However, even as we strive to grow Northern Power's revenues and foster Proton Energy Systems' penetration of large existing markets for its on-site commercial hydrogen systems," he continued, "we are mindful of the need to control operating costs, improve margins and strengthen cash flow. Results this year and going forward must do an even better job of reflecting our intensified focus on three things - solid revenue growth, lower costs and a good balance sheet," Mr. Schroeder added.
DESC reported that the company's gross margins were positive for the third consecutive quarter. In addition, cash and marketable securities as of June 30, 2005 were $45.8 million compared to $49.8 million as of March 31, 2005. The change primarily reflected the net loss for the quarter, with working capital requirements remaining essentially unchanged. The company defines working capital as current assets minus current liabilities excluding cash and marketable securities.
2nd Quarter Highlights:
Distributed Energy Systems noted several major developments since the last conference call on May 5th, 2005, including:
* A contract for Northern Power to design and install a 165 kW power
generation system for a wastewater treatment facility for the New York
Power Authority.
* A $3 million contract for Northern Power to design, engineer and
construct a 400 kW solar power system for Timberland.
* A three-year distribution agreement with Airgas to market and
distribute Proton's HOGEN on-site hydrogen generators in the U.S.
* A similar agreement with Praxair to become the exclusive distributor in
Canada and a U.S. distributor for Proton's HOGEN on-site hydrogen
generators.
* A $1.1 million contract for Northern Power to design, engineer and
install an advanced energy storage system for the Palmdale Water
District's Southern California water treatment plant.
* The selection of Proton by Air Products as the preferred supplier for
its electrolysis-based hydrogen energy stations.
In addition, earlier this week DESC announced that its Proton unit had entered into an agreement with Linde Gas, one of the world's largest international gas distributors, to become part of the Proton network of distributors, with responsibility for serving the U.S., the Caribbean and Mexico.
Outlook:
"Developments such as these -- together with the momentum from customers who see the need to think smarter and differently about their electric power priorities -- continue to bolster our optimism," Mr. Schroeder concluded. "We believe these trends and our operational improvements should enable us to report continuing progress toward profitability over the next several quarters."
Conference Call:
The Company will host a conference call tomorrow, Friday, August 5, 2005 at 11:00 a.m. EDT to discuss second quarter results and other matters of interest to investors and shareholders. Individuals wishing to participate in the conference call should dial (800) 329-9097, pass code 97357836, or for international calls (617) 614-4929. A replay will be available through August 19, 2005 by dialing (888) 286-8010, pass code 84998231 or on the company's website. A slide presentation and the call will also be broadcast live over the Internet, and can be accessed by all interested parties at www.vcall.com or through the investors' section of the Distributed Energy Systems website at www.distributed-energy.com. |
