Solomon Technologies, Inc. Reports Financial Results for the Quarter Ended September 30, 2007
Acquisitions and Successful Integration Driving Revenue and Margin Improvement
EAST BERLIN, Conn., Nov. 20 -- Solomon Technologies, Inc. (BULLETIN BOARD: SOLM) , a developer and manufacturer of high-efficiency regenerative electric power drive systems as well as high- voltage, high-power direct current power supplies and power supply systems, today announced its operating results for the quarter ended September 30, 2007.
Revenue for the quarter ended September 30, 2007 was $2.1 million compared with $0.8 million for the quarter ended September 30, 2006. Revenue for the nine months ended September 30, 2007 was $5.2 million as compared with $0.8 million for the nine months ended September 30, 2006. For both periods, revenues in the Company's Power Electronics Division contributed to all of the growth as a direct result of the acquisitions of Technipower LLC in August 2006, and Deltron LLC in September 2007.
"With the closing of the Deltron acquisition we have experienced a significant boost to our business from both a revenue and profitability perspective," said Gary Brandt, Chief Executive Officer. "Although the quarterly consolidated results only include one month of Deltron, our consolidated shipments for the month of September topped $1 million or, annualized, $12 million. Coincident with closing Deltron, we were able to realize significant cost reductions resulting in operating margin improvements within the division, which have and are expected to continue to have a positive impact on our consolidated financial results."
Brandt noted that order backlog at September 30, 2007 was at an all-time high of approximately $4.0 million, an increase of 60 percent from $2.5 million at December 31, 2006.
Gross profit for the quarter ended September 30, 2007 was $1.0 million or 46% of revenue, up dramatically from gross profit of $191 thousand, for the quarter ended September 30, 2006. Gross profit for the nine months ended September 30, 2007 was $2.4 million, or 47% of revenue, compared with gross profit for the same period in 2006 of $184 thousand. Operating loss for the quarter ended September 30, 2007 was $1.3 million compared with an operating loss of $2.3 million for the same period in 2006. Operating loss for the nine months ended September 30, 2007 was $3.0 million compared with an operating loss of $3.8 million for the same period in 2006. Net loss for the nine months ended September 30, 2007 was $11.9 million, or $0.35 per share, compared with a net loss of $11.0 million, or $0.44 per share, for the same period in 2006.
"The Deltron acquisition was accretive to revenue and EBITDA from day one, contributing to the reduced losses and underscoring our experience at integrating our acquisitions," commented Brandt. "Deltron not only provides us with a 'low-cost' manufacturing platform that can drive margin improvement across our existing revenue streams but, more importantly, positions us to capture new revenue opportunities due to our improved cost competitiveness and increased capacity. The Deltron acquisition, combined with the pending Unipower acquisition, is indicative of our commitment to building a business which not only addresses the growing market demand for high-efficiency power electronics and energy conversion devices, but also delivers positive financial returns."
CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call with investors on Tuesday, November 27, 2007 at 09:30 AM Eastern Time, to discuss the Company's financial results for the third quarter ended September 30, 2007, and the recently completed acquisition of Deltron.
Gary G. Brandt, Chief Executive Officer will be joined by Jack Worthen, President Power Electronics Division and Tom Roach, VP Finance and Corporate Controller on the call to review the company's financial and operational highlights.
Interested parties should call 1-888-487-0342 five minutes in advance to participate. The call will also be open to all interested investors through a live audio Web broadcast accessible at the Solomon Technologies, Inc. corporate website, www.solomontechnologies.com. For those unable to listen to the live broadcast, the call will be archived on the above-mentioned site.
Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc., through its Motive Power and Power Electronics divisions, develops, licenses, manufactures and sells precision electric power drive systems, including those utilizing its patented Electric Wheel(R), Electric Transaxle(TM) and hybrid and regenerative technologies as well as direct current power supplies and power supply systems requiring high levels of reliability and ruggedness for defense, aerospace, marine, commercial, automotive, 'hybrid-electric' and 'all-electric' vehicle applications.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize the terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the company's filings with the Securities and Exchange Commission. The forward- looking statements contained in this release speak only as of the date hereof, and the company undertakes no obligation to correct or update any forward- looking statements, whether as a result of new information, future events or otherwise.
Solomon Technologies, Inc. Gary Brandt or Tom Roach, 860-828-2060 Crescent Communications David Long, 203-226-5527 www.crescentir.com