SOURCE: Eco-Shift Power Corp.

Eco-Shift Power Corp.

December 10, 2014 07:00 ET

Eco-Shift Power Corp. (OTCQB: ECOP) Announces Updated Revenue Forecasts of $21 Million for 2015 and $32 Million for 2016

CAMBRIDGE, ON--(Marketwired - December 10, 2014) - Eco-Shift Power Corp. (OTCQB: ECOP) (ECOP) estimates 2015 revenue will total $21 million for 2015. This represents an increase in ECOP revenues of $19 million in 2015 over 2014 due to the Sun Industries Acquisition and new OEM sales channels.

High double digit growth is forecasted for 2015, leading to a projected total revenue of roughly $32 million in 2016. The outlook for 2016 has been increased based on a number of international distribution agreements, including the recent addition of Davison Product Group (DPG), a recognized global distributor of electronic products with worldwide service in sales, marketing and distribution in all significant sales channels including academia, government, military and consumer retailers including Home Depot, Lowes, Walmart and Amazon.

In October 2014, ECOP acquired Sun Industries based on their proven track record of delivering complex projects (700 projects across 30 states) and significant annual revenues over the past 23 operating years, with an annual average net revenue of over $7.5 million in the last 3 years. Sun Industries pre-acquisition revenues for 2014 total approximately $4.4 million, but cannot be counted as ECOP revenue given that the acquisition closed in the fourth quarter. ECOP's Third Quarter Fiscal 2014 results therefore did not include any revenue from Sun Industries. ECOP's 2014 revenue forecast totals roughly $2 million.

ECOP's Sun Industries business unit, based in Santa Ana California, is a specialist in complex large-scale ($250k+) single site, multiple site and national roll-out lighting retrofit projects servicing the MUSH (municipal, university, schools, hospitals) marketplace and large scale commercial/industrial clients (see link for project examples: The $2.1 million Santa Ana College project is a great example of Sun's abilities, with Phase 2 ($1.1 million) being awarded in 2014 based on the success of Phase 1. Sun is also making progress on several national roll-outs, with project specific details to be released shortly. 

Over the past 23 years, Sun has built a full turnkey EPC (Engineering, Procurement and Construction) lighting retrofit company that is vertically integrated. Service offerings include audit, design, specification, project management, installation, rebate management and full service data management (utilizing the proprietary SunView Data Management Platform) through all aspects of project development, installation and post completion service.

About Eco-Shift Power
With offices in Cambridge, Ontario and Santa Ana, California, Eco-Shift Power Corp. (ECOP) is a high efficiency lighting retrofit specialist and manufacturer of LED lighting products, wireless energy management systems, and cloud based software platforms.

Core ECOP competencies include LED high bay lighting, wireless energy management systems that are plug-and-play and compatible with multiple technologies (HVAC, plug load, etc.), and software platforms that allow for automated demand management and demand response.

ECOP's business model includes three primary segments, which include:

  • EPC (engineering/design, procurement, construction) of diversified and large scale lighting retrofit projects;
  • OEM (original equipment manufacturer) of LED lighting and wireless energy management systems; and
  • Energy Management and Demand Response, provided via long-term contracts and a Software-as-a-Service.

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Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the likelihood that the downturn in China's steel industry has halted and that the industry will experience a turnaround and increased demand; the significance of China's implementation of pro-growth measures and the likelihood that it will start benefitting the domestic steel industry; the Company's ability to reduce operating costs, improve working capital and increase profitability, and any other statements of non-historical information. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which China Precision Steel is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the offered shares or any other securities, nor shall there be any sale of such shares or any other securities in any province or state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Contact Information

  • Contact:

    Investors Relations
    Eco-Shift Power Corp.
    1090 Fountain St. N.
    Cambridge, ON
    N5E 1A3