Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

January 31, 2011 08:30 ET

Sustainable Energy Files Audited 2010 Annual Financial Statements & MD&A

CALGARY, ALBERTA--(Marketwire - Jan. 31, 2011) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG) is pleased to advise that it has filed its Audited Consolidated Financial Statements, for the fiscal year ending September 30, 2010 along with Management's Discussion and Analysis thereof. 

The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR at www.sedar.com and on our website at www.sustainableenergy.com

Highlights

  • Revenues for fiscal 2010 were $2.2 million and are expected to be between $1 and $1.1 million in Q1, 2011. 
  • Component supply issues which reduced product availability and sales in Q4, 2010 and Q1 2011 have been addressed in a restructured supply chain, and the Company is now able to confirm high volume orders. The Company remains on track to be able to produce 3-4MW per month early in Q3.
  • A restructured supply chain and manufacturing model implemented in Q1, 2011 has materially reduced the working capital needed to ramp production into higher volumes. Capital investment needed to increase production capacity is minimal.
  • Sustainable is forecasting positive cash flow from operations by fiscal Q4, 2011 driven by increasing demand in Ontario and the US, better margins and lower operating costs. 
  • "Parallel solar" has emerged as the most disruptive factor in the inverter industry today. Near universal acceptance of its superior performance and safety values will change the game for Sustainable in 2011, which has the only "parallel solar" option with the same installed cost, system serviceability and reliability as conventional inverters.

"Sustainable has turned a corner," said Michael Carten CEO of the Company. "We are executing on a plan that will take the Company to positive operating cash flow by the end of this fiscal year. We are able to do this with a materially lower working capital requirement and a minimal investment in plant and equipment." 

"More significantly, in terms of Company's long term value, "parallel solar" emerged during 2010 as probably the most disruptive factor in the solar power industry over the next few years. There is now widespread recognition of the superior performance and safety option of parallel solar for rooftop and building integrated solar power systems. Now the issue is not whether parallel is better; but which solution brings the parallel value at the lowest possible life cycle cost." 

"Sustainable has the only technology/product which offers the value propositions of parallel solar at the same low installed cost per watt, and with the same serviceability and system reliability as conventional inverters. This proposition is generating interest in the SUNERGY technology, not only in the US, but in Europe."

"Our strategy is to position our products as "the" parallel solution for commercial rooftops up to 250kW and for all architecturally integrated solar PV systems. Our game plan for 2011 is to use demand in Ontario to build production capacity to support high volume sales into the US and Europe in 2012." 

About Sustainable Energy:

Sustainable Energy (www.sustainableenergy.com) is Canada's solar inverter company. The Company's patented inverter technologies are a breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. 

The SUNERGYTM inverter is the industry's only grid-interactive solar inverter which enables a "parallel" solar PV system architecture in higher power ratings at a cost and serviceability factor that is comparable to conventional inverters in the market. The benefits of parallel solar are: (i) 5% - 25% higher total system power output; (ii) a better fill factor enabling better coverage of available space; (iii) simplified system design and installation; and (iv) the safety of extra low operating voltages which ensures the safety of building maintenance personnel, first responders, and tradesmen who may accidentally come into contact with system wiring.

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the Canadian and US Patent Offices.

Forward Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular In particular, it includes: statements concerning our product performance and the value of a parallel system architecture and product durability; statements concerning the solar power market and changing market dynamics especially concerning parallel solar; and statements projecting operating cash flow and working capital needs. While management believes these statements to be accurate they are dependent on a wide range of factors beyond management's control and should not be viewed as a guarantee of the specific outcome. 

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward- looking information contained hereinto reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information