Solomon Technologies, Inc., a developer and manufacturer of regenerative electric power drive systems and high-voltage, high-power direct current power systems, announced its 2008 first quarter operating results for the period ended March 31, 2008.
Revenue for the quarter ended March 31, 2008 was $2,490,784, an increase of $1,059,187 or 74% compared with the quarter ended March 31, 2007. The increase in revenue is primarily attributable to sales from the recently formed Power Electronics Division.
Gross profit for the period was $974,387 compared with the year earlier period of $652,310. The increase in revenue is attributable entirely to the results of the company’s Power Electronics Division.
Peter DeVecchis, President of Solomon commented, "We are making significant progress each quarter in bringing Solomon’s overall operations closer to cash flow breakeven. Our efforts in consolidating costs, identifying new market opportunities for our products and technologies and expanding our management breadth are now bringing tangible results. As we execute on both our acquisition and organic growth strategies, we believe the benefits will be substantial to all of our stockholders. We believe that revenue levels will continue to equal or exceed those of previous quarters."
The company reported a net loss for the three months ended March 31, 2008 of $1,422,668, a 54% reduction from its net loss of $3,047,232 for the three months ended March 31, 2007. Selling, general and administrative expenses were $1,000,447 for the period as compared to $1,251,938 for the year earlier period, a decrease of $251,491 or 20%. This decrease was primarily due to various corporate overhead and staffing reductions offset by the additional selling and administrative expenses incurred by the two businesses that comprise the company’s Power Electronics Division.
Research and Development costs were $392,257 for the period as compared to $253,664 for the year ago period. The increase was solely the result of continued R&D expenditures in the Power Electronics Division in the amount of $392,257.
Interest expense declined to $855,045 for the quarter from $2,193,940 for the year ago quarter, a decrease of $1,338,895 primarily due to a decrease in accrued cash and non-cash interest charges related to the variable rate self- liquidating senior secured convertible debentures sold in January and August of 2007.
