SOURCE: ZBB Energy Corporation

ZBB Energy Corporation

November 15, 2010 08:30 ET

ZBB Energy Reiterates Strong and Growing Backlog

Insiders Accumulate Significant Ownership Positions in ZBB Energy

MILWAUKEE, WI--(Marketwire - November 15, 2010) - ZBB Energy Corporation (NYSE Amex: ZBB), a leading developer of intelligent, renewable energy power platforms, provided additional information to investors as part of ZBB's on-going improvement in providing relevant information to its investors.

Funding the Company
The Company's plan for raising near-term capital during the Company's commercialization period involves a number of potential sources:

  • Strategic Partnerships
  • Government Funding
  • Low interest Loans
  • Equity Financings
  • Draws on the Socius Financing Facility As Needed

ZBB recently completed a $1.4 million equity round with insiders and a significant long-term institutional investor. These are patient investors that have the same goals as current long-term investors in the Company, are aligned with the vision of many investors about ZBB's large market potential, and share the excitement about the products that ZBB offers to capture large market potential. Directors and employees have taken a significant stake in the Company because they believe in the vision, the plan and the ability to execute.

"We are taking this 'step at a time' approach to funding in an effort to minimize dilution to shareholders. Small equity raises serve to fund the Company as we work to develop larger non-dilutive strategic partnerships and pursue significant sources of government funding and/or find ways to monetize government funding already obtained," said Eric Apfelbach -- ZBB's President & CEO.

The recent shareholder approval of preferred stock also strengthens ZBB's balance sheet by allowing the Company to move Socius debt from a long-term liability to the equity portion of their balance sheet.

Growing Backlog and Revenue Recognition
ZBB's backlog is strong and continues to grow, but most orders currently comprising backlog require UL 1741 certification of the PECC grid tie inverter. While achieving UL 1741 certification may presently be delaying revenue recognition, it's actually a significant competitive advantage in getting new orders, thus building backlog. When interconnecting the PECC with a utility network, utilities require the interconnection to have passed the UL 1741 certification. Being the only manufacturer of a PECC with this certification provides ZBB a clear competitive advantage and substantially enhances ZBB's enterprise value. 

While as a practice ZBB Energy does not provide guidance, some information on revenue expectations going forward is considered appropriate at this time. Revenue recognition will be low the first half of fiscal 2011 (see fiscal year definition below) due to orders in backlog awaiting certification. Early in the second half of fiscal 2011, ZBB will begin to release orders with UL 1741 certification that can then be recognized as revenue. As the year goes on, revenue recognition will continue to grow as additional PECC models are certified. In other words, it's worth the wait and in the meantime, ZBB expects backlog to continue to grow with additional orders requiring UL 1741 certification.

Contact ZBB
If you are an investor or a prospective investor trying to make an investment decision and require more information, you are encouraged to call ZBB at 262.253.9800 and talk with either Eric Apfelbach -- President and CEO, or Scott Scampini -- CFO. 

About ZBB Energy Corporation -- ZBB's Fiscal Year Runs from July 1 to June 30 of the Following Year
ZBB Energy Corporation (NYSE Amex: ZBB) provides distributed intelligent power management platforms that directly integrate multiple renewable and conventional onsite generation sources with rechargeable zinc bromide flow batteries and other storage technology. This platform solves a wide range of electrical system challenges in global markets for various types of sites with utility, governmental, commercial, industrial and residential end customers. A developer and manufacturer of its modular, scalable and environmentally friendly power systems ("ZESS POWR™"), ZBB Energy was founded in 1998 and is headquartered in Wisconsin with offices also located in Perth, Western Australia.

Safe Harbor Statement
Certain statements made in this press contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports of Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • Contact Information:
    Helen Brown
    Investor Relations
    ZBB Energy Corporation
    T: 262.253.9800
    Email: Email Contact