MP MicroPlanet loses $757,083 (U.S.) in second quarter
August 30, 2005
The Canada Stockwatch
MicroPlanet Technology Corp (TSX-V:MP)
Shares Issued 16,156,869
Last Close 8/29/2005 $0.70
Tuesday August 30 2005 - News Release
Mr. Brian Reidy reports
MICROPLANET REPORTS Q2 RESULTS FOR 2005
MicroPlanet Technology Corp. has released its second quarter financial results for the three and six-month periods ended June 30, 2005. All dollar figures are reported in U.S. currency.
Q2 business highlights:
- MicroPlanet enters into an agreement with Sacramento Municipal Utility District (SMUD) whereby the utility based in Sacramento, Calif., in conjunction with the American Public Power Association (APPA) will confirm the energy efficiency potential of MicroPlanet's point-of-consumption voltage regulators at the Davis Energy Group test facility. SMUD is the nation's (United States') sixth largest community-owned electric utility in terms of customers served;
- MicroPlanet enters into discussions with AES Corp. (NYSE: AES) to pursue a pilot program introducing MicroPlanet's point-of-consumption voltage regulators on the electric system of AES's subsidiary, Eletropaulo, in Sao Paulo, Brazil, which serves over five million customers; and
- MicroPlanet completed a merger/financing transaction and begins trading on TSX Venture Exchange.
FINANCIAL HIGHLIGHTS
Three months ended June 30
(in U.S. dollars)
2005 2004
Revenue $64,400 $41,477
Gross profit
(loss) ($3,647) $6,991
Total expenses $772,801 $566,655
Net earnings
(loss) $(757,083) $(558,934)
Basic and
diluted
(loss) per
share ($0.04) ($0.12)
FINANCIAL HIGHLIGHTS
Six months ended June 30
(in U.S. dollars)
2005 2004
Revenue $76,059 $48,189
Gross profit
(loss) ($3,075) $6,186
Total expenses 1,224,888 1,015,230
Net earnings
(loss) (1,207,372) (1,007,822)
Basic and
diluted
(loss) per
share (0.10) (0.23)
Revenues for the three-month period ended June 30, 2005, increased by 55 per cent to $64,400 compared with $41,477 during the same period in 2004. Year-to-date, revenues increased by 58 per cent to $76,059 compared with $48,189 during the same period in 2004.
Gross profit for the quarter was a loss $3,647 compared with a gain of $6,991 during the same period in 2004. Year-to-date, gross profit was a loss of $3,075 compared with a gain of $6,186 during the same period in 2004. Gross profit was impacted by cost of sales for the quarter increasing by 97 per cent to $68,047 compared with $34,486 during the same prior year quarter. Year-to-date cost of sales increased by 88 per cent to $79,134 compared with $42,003 during the same period in 2004. Cost of sales consists primarily of direct labor and product costs associated with the installation and trial of MicroPlanet products at client sites.
Expenses for the quarter increased by 36 per cent to $772,801 compared with $566,665 during the same quarter in the prior year. Year-to-date, expenses increased by 21 per cent to $1,224,888 compared with $1,015,230 during the same period in 2004. Expenses include the cost of research and development of the MicroPlanet technology and related products, identifying and developing potential markets for the products and other related activities. The increase in expenses is related to continuing development and commercialization of MicroPlanet's technology and the related products.
Net loss for the quarter was $757,083 or four cents loss per share (basic and diluted) compared with a net loss of $558,934 or 12 cents loss per share (basic and diluted) during same quarter in the prior year. Year-to-date net loss was $1,207,372 or 10 cents loss per share (basic and diluted) compared with a net loss of $1,007,822 or 23 cents loss per share during the same period in 2004.
As results of the merger and financing transaction completed in the quarter, weighted average shares outstanding increased to 19,626,025 compared with 4,478,470 for same quarter in the prior year and year-to-date weighted average shares outstanding increased to 12,143,370 compared with 4,478,470 in the same prior year period.
As at June 30, 2005, the company had cash and cash equivalents of $3,417,082.
MicroPlanet's unaudited financial information for the three-month and six-month periods ending June 30, 2005, and 2004 along with the accompanying management's discussion and analysis for the same period are available on SEDAR.
Outlook
Brian Reidy, chief executive officer of MicroPlanet, commented: "During the second half of 2005, we expect to ship and have installed 500 MicroPlanet's high voltage regulator (HVR) units at individual power delivery points for 11 electric utility operators which serve a combined 4.1 million customers. This is as part of a large-scale technology transfer project in the U.S. Pacific Northwest and represents an important milestone in establishing MicroPlanet's products in the marketplace. We also expect MicroPlanet to continue its progress towards closing several other large scale pilot deployments with major utilities during the second half of 2005."
Mr. Reidy continues: "MicroPlanet completed the design of its new three-phase voltage regulating product (the EVR 3P) during the second quarter and expects that this product will be ready for initial shipments during the second half of 2005. The company is planning to begin field testing the units at several pilot locations by the end of 2005. The EVR 3P is being marketed to global corporations operating multiple commercial outlets to reduce electric consumption, lower electric bills, and increase the life span of electric equipment. MicroPlanet has established relationships with a variety of possible users to conduct pilot projects once the EVR 3Ps have been manufactured."