SOURCE: Agrisolar Solutions Inc

August 24, 2011 12:01 ET

AgriSolar Produces 147% Sequential Revenue Growth for June Quarter, 90% Year Over Year-Positive EPS, and Further Strengthens Balance Sheet

DENVER, CO--(Marketwire - Aug 24, 2011) - AgriSolar Solutions, Inc. (OTCBB: AGSO), provider of pesticide-free, solar powered insect elimination systems for use on farms, orchards and vineyards, is pleased to offer to its investors and to the agricultural industry information on its exceptionally strong financial results for the quarter ending June 2011. During the June quarter, the Company experienced strong revenue growth, positive earnings and a further strengthening of its balance sheet. Management of AgriSolar expects this strong financial performance to continue for the foreseeable future as it moves to expand its operations internationally to capitalize on the 12-month growing seasons of the geographically dispersed agricultural sector.

Revenue for the three-month period ending June 30, 2011 was $5.6 million, a 147% increase from the previous quarter ended March 2011 and a 90% increase on a year-over-year quarterly basis. Gross profit increased to $1.6 million from $1.0 million during the year ago period. Quarterly comprehensive income for the quarter was $423,482, or $.01 per share (basic), compared to a loss during the June 2010 quarter.

"We could not be more pleased with the growth we are experiencing," commented Laing Choa Wei, AgriSolar's Chief Executive Officer. "Our approach to pesticide free agricultural insect control continues to see widening acceptance within our core Chinese market and this is allowing us to meaningfully accelerate our revenue growth. While we are very excited about our current level of success, we are even more enthusiastic about our plans to introduce this patented technology to other major agricultural markets. Our investors should expect an aggressive rollout into several other markets over the coming quarters."

During the June quarter the Company also continued to strengthen its balance sheet. Total assets grew to $15.7 million, up from $11.1 million as of the end of March 2011, our fiscal year end, while total equity grew to $5.8 million from $5.1 million, during the same period.

Mr. Wei continued, "During May of this year we announced a significant increase in the production capacity of our proprietary solar powered light source technology for agricultural insect elimination. Through the installation of high-volume manufacturing equipment at our factory, we will be able to meaningfully increase factory output, reduce labor costs and increase our operating margins, while at the same time better protecting AgriSolar's substantial intellectual property. This increased production capacity will allow us to meet the strong demand we are currently seeing from the marketplace and the upcoming demand we expect to realize as we move into new markets."

AgriSolar Solutions estimates that the cost to use the cheapest insecticide available in the marketplace is approximately US$9 per acre per month, and that the cost of herbal or organic insecticides is approximately US$55 per acre per month. In comparison, the Company estimates the cost to use its solar insect killer is substantially lower, approximately US$1 per acre per year. As a result, in addition to being environmentally friendly, users can enjoy significant cost advantages by using the Company's solutions instead of traditional insecticides.

Additional June quarter results highlights are outlined below:

Financial Position
June 30, 2011
(Unaudited)
March 31, 2011
(Audited)
Total current assets $ 14,276,156 $ 9,761,494
Total current liabilities $ 9,874,924 $ 5,944,147
Total assets $ 15,677,725 $ 11,092,696
Total liabilities $ 9,874,924 $ 5,944,147
Total stockholders' equity $ 5,802,801 $ 5,148,549
Operations
Three Months Ended
June 30, 2011
(Unaudited)
June 30, 2010
(Unaudited)
Revenues, net $ 5,564,788 $ 2,934,897
Gross profit $ 1,664,795 $ 1,013,429
Net income (loss) $ 384,118 $ (31,461)
Net income (loss) attributed to common stockholders $ 363,118 $ (38,961)
Comprehensive income (loss) $ 423,482 $ (33,280)
Net income (loss) per share - basic $ 0.01 (0.00)
Net income (loss) per share - diluted $ 0.00 (0.00)

About AgriSolar Solutions, Inc.
AgriSolar Solutions, Inc., a fully reporting company that trades on the U.S. OTCBB under the symbol AGSO, is engaged in the development, production and sale of patented, pesticide-free, solar powered insect elimination systems for use on farms, orchards and vineyards. AgriSolar's goal is to dramatically enhance the quality of food products by providing alternatives to the use of chemicals in the global food chain while at the same time significantly improving the economics of commercial agriculture. To date, over 100,000 of the Company's solar powered insect elimination systems have been installed throughout the world, primarily in China. AgriSolar's manufacturing facility, operated by its subsidiary Shenzhen Fuwaysun Technology Company Limited, a PRC corporation, is located in Shenzhen, PRC. More information about AgriSolar can be found at www.agrisolarsolutions.com

Forward Looking Statement Notice: This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the company's recent filings with the SEC, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Furthermore, the company does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law.

Contact Information

  • For more information contact:
    Randy Sasaki
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