SOURCE: Worldwide Energy & Manufacturing USA, Inc.

November 18, 2008 15:03 ET

Worldwide Energy and Manufacturing USA Announces Record Revenue and Net Income for the Third Quarter 2008

Revenue Increased 546% to $19.1 Million for the Third Quarter 2008; Revenue Increased 283% to $31.3 Million for the Nine Months Ended September 30, 2008; Net Income Increased 327% to $541,000 for the Third Quarter 2008; Net Income Increased 164% to $1.2 Million for the Nine Months Ended September 30, 2008

SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA--(Marketwire - November 18, 2008) - Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based solar module technology and China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries, today announced record revenue and net income for the third quarter ended September 30, 2008. A conference call is scheduled for Tuesday, November 18, 2008 at 4:05 p.m. Eastern time (1:05 p.m. Pacific time). Details of the call follow below.

Third Quarter Ended September 30, 2008

Net sales for the three months ended September 30, 2008 totaled $19.1 million, an increase of $16.1 million or 546%, compared to $3.0 million for the three months ended September 30, 2007. Revenue increased due to an increase in orders in the energy division of approximately $15.8 million for solar modules and an increase of approximately $300,000 in the die cast factory as a result of an order from Shanghai GM. Shanghai GM is one of the largest vehicle manufacturers in China and GM is the seventh Fortune 500 customer obtained by Worldwide Energy.

Gross profit totaled $1.4 million for the period ended September 30, 2008, an increase of 41%, compared to $971,000 for the period ended September 30, 2007. Cost of goods sold for the third quarter of 2008 was $17.7 million compared to $2.0 million for the same period in 2007. The increase was primarily the result of greater revenues in the energy division.

Gross margin was 7.1% for the three months ended September 30, 2008 compared to 32.8% for the same period in 2007. The decline was the result of the Company utilizing outside services for the production of solar modules along with softness in the price of solar modules. Gross margins are expected to improve as the Company continues its transition to becoming a direct manufacturer of its solar module products as the newly established factory becomes operational. Further, the outlook for solar modules margins looks to improve as raw materials necessary for production of modules are expected to decline.

Net income for the three months ended September 30, 2008 totaled $541,000 or $0.17 per share, an increase of 327% compared to $127,000 or $0.6 per share.

Nine Months Ended September 30, 2008

Net sales for the nine months ended September 30, 2008 totaled $31.3 million compared to $8.2 million for the nine months ended September 30, 2007, an increase of 283%. Orders from the energy division increased during this period by $21.6 million and represented 69% of sales. Sales generated from Shanghai GM totaled $1.5 million during this period.

For the nine months ended September 30, 2008 gross profit totaled $3.9 million, an increase of 46%, compared to gross profit of $2.6 million in the same period in 2007. Cost of sales for the nine months ended September 30, 2008 totaled $27.5 million compared to $5.5 million for the same period in 2007. Gross margin was 12.2% for the nine months ended September 30, 2008 compared to 32% in the same period in 2007.

For the nine-month period in 2008 net income increased 164% to $1.2 million, or $0.48 per share, compared to $454,000, or $0.22 per share, for the nine-month period in 2007.

Balance Sheet

Cash and cash equivalents totaled $4.5 million on September 30, 2008, compared to $2.1 million at year end. Accounts receivable increased to $5.9 million for the period ended September 30, 2008 compared to $3.3 million at year end.

Total current assets and total assets were $15.2 million and $17.2 million on September 30, 2008. This compared to total current assets and total assets of $8.2 million and $8.8 million at year end.

Total current liabilities and total liabilities totaled $6.4 million and $7.4 million on September 30, 2008 compared to total current liabilities and total liabilities of $4.4 million and $5 million at year end. The Company's current ratio improved to 2.38 to 1 for the period ended September 30, 2008 compared to 1.85 to 1 at year end.

Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing stated: "We are very pleased to announce the best third quarter in the company's history. Our Energy division is performing well and with increased capacity and new solar contracts, we expect to experience strong financial growth for the remainder of 2008 and beyond. We are pleased that our new solar factory is ready to open, which will help to increase our gross margins for the energy division and the company as a whole. Our strong financial performance clearly demonstrates that the company has successfully made the transition into the renewable energy market. The remainder of 2008 is on track for explosive growth with records for both revenue and profitability."

Conference Call
The call information follows:
Date: November 18, 2008
Time: 4:05 p.m. Eastern Standard Time
Dial-in number for US/Canada:  (866) 212-0875
Conference ID:  130551

About Worldwide Energy and Manufacturing USA, Inc.

Worldwide Energy and Manufacturing USA, Inc. ("Worldwide"), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.

For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.'s future press releases or request to be added to the Company's distribution list by contacting John Ballard.

Forward-looking statements:

The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of business risks, external factors and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events, or otherwise.

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