SOURCE: Composite Technology Corporation

December 17, 2007 08:05 ET

Composite Technology Announces Record Revenues for Fiscal 2007; To Host Conference Call to Discuss Fiscal 2007 Results

IRVINE, CA--(Marketwire - December 17, 2007) - Composite Technology Corporation (CTC) (OTCBB: CPTC) on Friday the 14th of December announced results for the fiscal year ending September 30, 2007.

The Company recorded record revenue for fiscal 2007 of $40.8 million, an increase of 402% compared to revenue of $10.1 million for fiscal 2006. GAAP net loss increased to $45.0 million or $0.24 per share as compared to $28.5 million or $0.20 per share on increased expenses related to the acquired DeWind subsidiary and increased interest expenses related to higher debt balances. The Company ended the fiscal year with $22.7 million in cash and cash equivalents. Complete financial results are included on our Form 10-K filed with the Securities and Exchange Commission on December 14, 2007.

"Fiscal 2007 was a year of outstanding progress towards revenue growth for each of our business segments," commented Benton Wilcoxon, Chief Executive Officer for CTC. "The multi-year sales contract with Jiangsu Far East has demonstrated a key adoption of our ACCC conductor technology and the German certification of our new 2 megawatt D8.2 DeWind turbine in July 2007 helped position the DeWind business for substantial growth in 2008 and beyond."

"CTC Cable business saw substantial revenue growth in the second half of fiscal 2007 with over 70% of revenue occurring in the last two quarters, and the current order backlog of over $16 million exceeds all fiscal 2007 revenues for that business," said D.J. Carney, Chief Financial Officer of CTC. "The successful execution of engineering and sales efforts for our DeWind business has resulted in an increase of the order backlog to $50 million for that business segment at fiscal year end."

CTC is pleased to announce that management will host a conference call and simultaneous audio webcast to discuss its fiscal 2007 results and provide revenue guidance for its first 2008 fiscal quarter ending December 31, 2007 on December 18th, 2007 at 10:00 AM Pacific Time, 1:00 PM Eastern. Analysts and institutional investors may participate by calling 1-888-339-9446, or internationally by dialing + 1-480-239-1734. A live audio webcast will be available at http://viavid.net/dce.aspx?sid=000049A9 and the broadcast will be archived and available for replay for one year.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation products through its subsidiaries:

--  DeWind Inc. designs, produces, and sells the DeWind series of wind
    energy turbines, including the new 2 megawatt D8.2 model available in both
    50Hz and 60Hz; the 2MW D8 model in 50Hz; and the 1.25MW D6 model in 50Hz.
    The new D8.2 has been operating since early 2007 at Cuxhaven, Germany, and
    utilizes the advanced WinDrive® hydrodynamic torque converter developed
    by Voith AG with a synchronous AC generator connected directly to the grid
    at high voltage without the use of power conversion electronics.
    Preparations are now being completed for a 60Hz version to be installed in
    Sweetwater, Texas, for certification to US standards. D8.2 turbines are now
    being assembled at TECO Westinghouse Motor Company in Texas, for our North
    and South American customers.
    
--  CTC Cable Corporation produces composite rod for use in its patented
    ACCC (aluminum conductor composite core) conductors, which are "high
    efficiency conductors" for use in electrical transmission grid systems.
    ACCC conductors demonstrate less electricity line losses when compared with
    conventional conductors. When deployed in place of conventional conductors
    on existing systems, the higher efficiency of ACCC conductors enable power
    generators to reduce the amount of power they must generate while still
    delivering the same power to the customers.  They have also demonstrated
    significant savings in upgrade capital costs and operating expenses when
    substituted for other conductors. ACCC conductors enable grid operators to
    reduce blackouts and brownouts, providing a 'reserve electrical capacity'
    by operating at higher temperatures without significant thermal sag of the
    lines. ACCC conductors are an innovative economical solution for
    reconductoring power lines, constructing new lines and crossing large
    spans. ACCC composite rod is delivered to qualified conductor manufacturers
    worldwide for local ACCC conductor production and resale into local
    markets.
    

For further information visit our website: www.compositetechcorp.com.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (Company). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, the ability of the company to convert quotations and framework agreements into firm orders, our customers' fulfillment of payment obligations under the respective supply agreement, our ability to deliver reliable turbines on a timely basis, general economic conditions, the availability of funds for capital expenditure by customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to produce the turbines and acquire its components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2007 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

Contact Information

  • Investor Relations Contact:
    James Carswell
    +1-949-428-8500