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8-K - SOLAR ENERTECH CORP | v205863_8k.htm |
Exhibit
99.1
Contact:
Solar
EnerTech Corp.
Phone:
+86-21-6886-2220
http://www.solarE-power.com/
Mr. Mark
Collinson, Partner
CCG
Investor Relations
Phone :
+1-310-954-1343
Email :
mark.collinson@ccgir.com
www.ccgirasia.com
For
Immediate Release
Solar
EnerTech Corp. Announces Fourth Quarter and Fiscal Year End 2010 Financial
Results
—
Shipments Increased 233% Compared to Fiscal Year 2009
—
|
—
Revenue Increased 113% Compared to Fiscal Year 2009
—
|
—
Gross Profit Increased 600% Compared to Fiscal Year 2009
—
|
Mountain View, CA, December 17,
2010 – Solar EnerTech Corp. (OTCBB: SOEN) (the "Company") today announced
financial results for the fourth quarter and fiscal year ended September 30,
2010.
Fourth
Quarter 2010 Highlights:
|
·
|
Shipments
for the fourth quarter 2010 increased 87% to 9.86MW from 5.26MW in the
fourth quarter of the prior year.
|
|
·
|
Revenue
for the fourth quarter 2010 was $18.2 million, representing an increase of
38% over the $13.2 million of revenue booked in the fourth quarter of the
prior year.
|
Fiscal
Year 2010 Highlights:
|
·
|
Shipments
for fiscal year 2010 increased 233% to 34.92MW from 10.50MW in the prior
year.
|
|
·
|
Revenue
for fiscal year 2010 was $70.0 million, representing an increase of 113%
over the prior year.
|
|
·
|
Gross
Profit for fiscal year 2010 was $5.2 million, compared to a loss of $1.0
million in the prior year.
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SOLAR
MODULES
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|||||
Q-4 2010
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Q-4 2009
|
%
Increase (Decrease)
|
|||
Solar
Module Shipments
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9.86MW
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5.26MW
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87%
|
||
Avg.
Selling Price ($ / watt)
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$1.82
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$2.13
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(15%)
|
||
FY 2010
|
FY 2009
|
%
Increase (Decrease)
|
|||
Solar
Module Shipments
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34.92MW
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10.50MW
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233%
|
||
Avg.
Selling Price ($ / watt)
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$1.79
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$3.07
|
(42%)
|
Commenting
on the quarter and year-end results, Solar EnerTech Corp.’s Chief Executive
Officer, Leo S. Young noted, “We experienced strong growth in demand for our
products both during the quarter and throughout the year, pushing our production
and shipments to historically high levels. During the year, although
selling prices, dictated by market, declined 40%, reduction in raw materials
costs coupled with increased solar cell efficiencies gained from our technology
facilities translated into significant improvement in our overall gross margins,
which grew from negative 3% last year to positive 7% this year. Also,
our cash position is largely improved from $1.7 million a year ago to $6.6
million. Equally pleasing was the expansion of shipment volumes to
both new and existing customers in Europe, Australia and the United
States.”
6
Fourth
Quarter Results
Total
module shipments increased 87% to 9.86MW in the fourth quarter of fiscal year
2010 compared to 5.26MW in the fourth quarter of fiscal year 2009. Revenue for
the fourth quarter of fiscal year 2010 increased 38% to $18.2 million compared
to $13.2 million in the fourth quarter a year ago. Revenue for the fourth
quarter of fiscal year 2010 was comprised of approximately $17.9 million in
solar module sales, of which more than 95% were sold to Europe and Australia;
$0.2 million in solar cell sales; and $0.1 million from the resale of
raw materials. The increase in revenue over the prior year period was driven by
strong organic growth from existing customers and increased sales orders from
new customers which resulted from the heightened efforts of the Company’s sales
and marketing team.
Gross
profit for the fourth quarter of fiscal year 2010 decreased to $1.0 million from
the $2.1 million recorded in the fourth quarter of fiscal year 2009. Gross
margin for the fourth fiscal quarter 2010 was 6% as compared to 16% in the same
prior year period.
Total
operating expenses for the fourth quarter of fiscal year 2010 were $2.4 million,
which included $0.7 million in non-cash stock compensation
expenses. Excluding this non-cash item, operating expenses for the
fourth quarter of fiscal year 2010 were $1.7 million, or 9% of total sales. By
comparison, total operating expenses for the fourth quarter of fiscal year 2009
were $1.4 million, which included $1.1 million of non-cash stock
compensation expense (a negative adjustment related to the restructuring of the
management team) and $1.0 million of non-cash charges for impairment losses on
property and equipment. Excluding these non-cash items, operating
expenses for the fourth quarter a year ago were $1.5 million, or 11% of total
sales.
Net loss
for the fourth quarter of fiscal year 2010 was ($1.3) million, or ($0.008) per
basic and diluted share, compared to a net income of $1.9 million, or $0.02 per
basic and diluted share, for the same period in fiscal 2009. The net loss in the
fourth quarter of fiscal year 2010 was primarily the result of declining selling
price and lower gross margins during the period.
Fiscal
2010 Financial Results
Revenue
for the fiscal year ended September 30, 2010 was $70.0 million compared to $32.8
million for the same period in fiscal year 2009, an increase of
113%. Gross profit was $5.2 million compared to a loss of ($1.0)
million for the fiscal year ended September 30, 2009. Total operating
expenses for fiscal year 2010 were $28.5 million, or 41% of sales, compared to
$11.4 million, or 35% of sales, for the prior fiscal year. The year-over-year
increase in total operating expenses of 149% was primarily attributable to
non-cash debt restructuring charges of $18.5 million.
Net loss
for the fiscal year ended September 30, 2010 was ($25.0) million, or ($0.18) per
basic and diluted share compared to a net loss of ($14.2) million, or ($0.16)
per basic and diluted share, for the same period in fiscal year 2009. The net
loss in the current fiscal year includes non-cash debt restructuring charges of
$18.5 million and an impairment loss of $1.0 million on the Company’s investment
in 21-Century Silicon, both amounts are stated before tax. In the fiscal year
ended September 30, 2009, the Company recorded a non-cash loss on debt
extinguishment amounting to $0.5 million and an impairment loss on property and
equipment of $1.0 million, both amounts are stated before tax.
Financial
Position
As
of September 30, 2010, the Company’s assets included $6.6 million in cash,
$6.5 million of accounts receivable, $1.3 million of prepayments primarily
for the purchase of raw materials, $4.1 million of inventories on hand and
$1.6 million of VAT and other receivables. Additionally, as of September
30, 2010, the Company’s liabilities included $12.5 million of accounts
payable, customer advance payments and accrued liabilities; $5.8 million
of accounts payable and accrued liability from related parties; and $1.3
million of short-term loans.
|
As of
September 30, 2010, the Company recorded a $1.5 million liability for an
outstanding Series B-1convertible note. The note bears interest at 6% per annum
and is due on March 19, 2012.
About
Solar EnerTech Corp.
Solar
EnerTech is a photovoltaic solar energy cell manufacturing enterprise
incorporated in the United States with its corporate office in Mountain View,
California. The Company has established a sophisticated
67,107-square-foot manufacturing facility at Jinqiao Modern Technology Park in
Shanghai, China. The Company currently has two 25MW solar cell production lines
and a 50MW solar module production facility.
7
Solar
EnerTech has also established a Joint R&D Lab at Shanghai University to
develop higher efficiency cells and to put the results of that research to use
in its manufacturing processes. Led by one of the industry's top
scientists, the Company expects its R&D program to help bring Solar EnerTech
to the forefront of advanced solar technology research and production. For
additional information regarding the Company, please visit http://www.solarE-power.com.
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Safe Harbor
Statement
|
Statements
contained in this press release, which are not historical facts, are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based
largely on current expectations and are subject to a number of known and unknown
risks, uncertainties and other factors beyond our control that could cause
actual events and results to differ materially from these statements. These
statements are not guarantees of future performance, and readers are cautioned
not to place undue reliance on these forward-looking statements, which are
relevant as of the date of the given press release and should not be relied upon
as of any subsequent date. Solar EnerTech undertakes no obligation to update
publicly any forward-looking statements.
(Unaudited
Financial Statements on Next Page)
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8
Solar
EnerTech Corp
|
Unaudited
Consolidated Statements of
Operations
|
Three
Months Ended September 30,
|
Year
Ended September 30,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Sales
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$ | 18,230,000 | $ | 13,196,000 | $ | 70,029,000 | $ | 32,835,000 | ||||||||
Cost
of sales
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(17,183,000 | ) | (11,085,000 | ) | (64,820,000 | ) | (33,876,000 | ) | ||||||||
Gross
profit (loss)
|
1,047,000 | 2,111,000 | 5,209,000 | (1,041,000 | ) | |||||||||||
Operating
expenses:
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||||||||||||||||
Selling,
general and administrative
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2,322,000 | 1,000,000 | 9,565,000 | 9,224,000 | ||||||||||||
Research
and development
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60,000 | (534,000 | ) | 347,000 | 700,000 | |||||||||||
Loss
on debt extinguishment
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(9,000 | ) | - | 18,540,000 | 527,000 | |||||||||||
Impairment
loss on property and equipment
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- | 960,000 | - | 960,000 | ||||||||||||
Total
operating expenses
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2,373,000 | 1,426,000 | 28,452,000 | 11,411,000 | ||||||||||||
Operating
income (loss)
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(1,326,000 | ) | 685,000 | (23,243,000 | ) | (12,452,000 | ) | |||||||||
Other
income (expense):
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||||||||||||||||
Interest
income
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2,000 | 3,000 | 7,000 | 16,000 | ||||||||||||
Interest
expense
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(63,000 | ) | (2,060,000 | ) | (5,446,000 | ) | (3,998,000 | ) | ||||||||
Gain
on change in fair market value of compound embedded
derivative
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120,000 | 420,000 | 1,235,000 | 770,000 | ||||||||||||
Gain
on change in fair market value of warrant liability
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142,000 | 2,759,000 | 4,511,000 | 1,344,000 | ||||||||||||
Impairment
loss on investment
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- | - | (1,000,000 | ) | - | |||||||||||
Other
income (expense)
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(149,000 | ) | 136,000 | (1,078,000 | ) | 139,000 | ||||||||||
Net
income (loss)
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$ | (1,274,000 | ) | $ | 1,943,000 | $ | (25,014,000 | ) | $ | (14,181,000 | ) | |||||
Net
income (loss) per share - basic
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$ | (0.008 | ) | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | |||||
Net
income (loss) per share - diluted
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$ | (0.008 | ) | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | |||||
Weighted
average shares outstanding - basic
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157,010,056 | 88,256,706 | 135,557,265 | 87,817,762 | ||||||||||||
Weighted
average shares outstanding - diluted
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157,010,056 | 88,315,499 | 135,557,265 | 87,817,762 |
Solar
EnerTech Corp
Consolidated
Balance Sheets
|
September
30, 2010
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September
30, 2009
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|||||||
ASSETS
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||||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 6,578,000 | $ | 1,719,000 | ||||
Accounts
receivable, net of allowance for doubtful account of
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||||||||
$42,000
and $96,000 at September 30, 2010 and 2009, respectively
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6,546,000 | 7,395,000 | ||||||
Advance
payments and other
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1,274,000 | 799,000 | ||||||
Inventories,
net
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4,083,000 | 3,995,000 | ||||||
Deferred
financing costs, net of accumulated amortization
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- | 1,250,000 | ||||||
VAT
receivable
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870,000 | 334,000 | ||||||
Other
receivable
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690,000 | 408,000 | ||||||
Total
current assets
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20,041,000 | 15,900,000 | ||||||
Property
and equipment, net
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8,874,000 | 10,509,000 | ||||||
Other
assets
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735,000 | - | ||||||
Investment
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- | 1,000,000 | ||||||
Deposits
|
102,000 | 87,000 | ||||||
Total
assets
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$ | 29,752,000 | $ | 27,496,000 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Accounts
payable
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$ | 7,895,000 | $ | 5,794,000 | ||||
Customer
advance payment
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2,032,000 | 27,000 | ||||||
Accrued
expenses
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2,596,000 | 1,088,000 | ||||||
Accounts
payable and accrued liabilities, related parties
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5,817,000 | 5,646,000 | ||||||
Short-term
loans
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1,312,000 | - | ||||||
Convertible
notes, net of discount
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- | 3,061,000 | ||||||
Derivative
liabilities
|
- | 178,000 | ||||||
Total
current liabilities
|
19,652,000 | 15,794,000 | ||||||
Convertible
notes, net of discount
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1,531,000 | - | ||||||
Derivative
liabilities
|
422,000 | - | ||||||
Warrant
liabilities
|
902,000 | 2,068,000 | ||||||
Total
liabilities
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22,507,000 | 17,862,000 | ||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Common
stock - 400,000,000 shares authorized at $0.001 par value
170,338,954
|
||||||||
and
111,406,696 shares issued and outstanding at September 30, 2010
and
|
||||||||
2009,
respectively
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170,000 | 111,000 | ||||||
Additional
paid in capital
|
97,656,000 | 75,389,000 | ||||||
Other
comprehensive income
|
2,755,000 | 2,456,000 | ||||||
Accumulated
deficit
|
(93,336,000 | ) | (68,322,000 | ) | ||||
Total
stockholders' equity
|
7,245,000 | 9,634,000 | ||||||
Total
liabilities and stockholders' equity
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$ | 29,752,000 | $ | 27,496,000 | ||||
10