Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

May 31, 2011 08:00 ET

Sustainable Energy Reports 6 Month Operating and Financial Results

CALGARY, ALBERTA--(Marketwire - May 31, 2011) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable" or the "Company") yesterday reported its operating and financial results for the six month period ending March 31, 2011.

The Consolidated Financial Statements and Management's Discussion and Analysis thereof can be found with the Company's public documents on SEDAR (www.sedar.com) and at the Company's website (www.sustainableenergy.com) under Investor/Financials/Fiscal 2011.

Highlights

  • 4.2 MW in shipments during first six months of 2011 for total revenues of $1.7 million; annualized operating cost reduced by almost $2 million from 2010 levels.
  • Sustainable expands distribution channels in Ontario with leading systems integrators electrical distributors and module and tracker manufactures –positioned for growth in 200MW addressable market.
  • 23MW supply contract with tenKsolar marks US market entry - 269 (1.4 MW) units delivered to date.
  • SUNERGY gaining recognition from market leaders in Europe for lower cost and easily serviceable parallel solar solution.
  • Restructured manufacturing and supply chain model enables lower manufactured cost and more flexible market response time for SUNERGY production.
  • Technology breakthrough in Q2 sets stage for lowest cost higher efficiency product platform by September 2011.
  • Regulatory delays in Ontario's market start-up slow solar product sales across the board during Q2, resulting in lower than anticipated product sales revenues for the Quarter at $724,549.
  • Ontario Power Authority approval of 839 capacity allocation exempt (<500kW) rooftop projects totaling 142 MW signals improved market conditions for balance of year. Combined with 149MW microFIT backlog brings total backlog to 291 MW.
  • New equity of $2.3 million plus $1.5 million operating line with a Canadian Chartered Bank secures cash reserves needed to reach positive cash flow.

"Q2 combined very positive outcomes with frustrating bureaucratic delays in the Ontario market," said Michael Carten CEO of the Company.

"It is now clear that the parallel system design is potentially one of the more disruptive factors affecting the solar industry globally and we are benefiting from investments by VC funded micro inverter and power optimizer companies to evangelize the parallel value proposition."

"Within Europe this has translated into new interest from several leading thin film manufacturers and distributors based on our cost and serviceability advantages. In the next two Quarters, we expect to see increased demand for the inverter especially from customers in Italy and France."

"We are executing on our plan. A restructured supply chain and manufacturing model is operational and set to go; and we are exceeding manufactured cost targets. We have built a strong presence in the Ontario microFIT (<10kW) market from a standing start with leading system integrators, electrical distributors as well as module and tracker suppliers. During Q2, we also secured our first major contract in the US for an estimated 4,600 units, and we are delivering on this contract."

"However inexplicable regulatory delays caught the industry by surprise dramatically slowing demand for solar products in Q2. This was partially resolved by the announced approval of 142 MW of capacity allocation exempt projects signaling the intention of the Government to make this industry work."

"We are optimistic that the regulatory delays will be resolved in the next few weeks. Nevertheless, we have slowed production of Ontario product and deferred Guelph until we have better visibility on demand in the Province".

About Sustainable Energy: Based in Calgary, Canada, Sustainable (www.sustainableenergy.com) designs, manufactures and distributes power inverters for grid-connected solar PV systems. Advanced power inverters are a critical enabler of all modern solar PV power systems converting the direct current ("DC") power output of the solar PV modules into the high quality alternating current ("AC") power required by the power grid. Advanced power inverters also optimize the performance of the solar PV modules and maintain the integrity and safety of the interconnection with the power grid.

Sustainable Energy has developed and patented an inverter design which is a breakthrough in solar inverter technology. It is the only inverter design which allows grid connected solar PV systems to be designed using a "massively parallel" architecture with an industry standard form factor and with electrical conversion efficiencies that meet or exceed industry leaders.

Sustainable Energy's technologies are the subject of multiple patents issued by the US Patent Office with further patents pending. Follow us on Twitter: @SunergySTG.

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, we include: statements concerning the impact of our technology on solar PV system performance; statements concerning the potential for sales in the markets we have entered and statements concerning the manufactured cost of our products. 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 herein to 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.

Contact Information

  • Sustainable Energy Technologies Ltd
    Michael Carten
    President & CEO
    403.508.7177 #111
    Michael.Carten (at)SustainableEnergy.com

    Sustainable Energy Technologies Ltd
    Stephan Gustajtis
    Investor Relations
    +1.647.258.0343 #108
    Stephan.Gustajtis(at)SustainableEnergy.com