Solomon Technologies, Inc. announced its operating results for the year ended December 31, 2006. The company filed its Form 10-KSB with the Securities Exchange Commission (SEC) on April 2, 2007.
Revenue for the year ended December 31, 2006 was $2.3 million, an increase of $2.2 million, or approximately 3,200%, compared with $0.07 million for the year ended December 31, 2005. Revenues in our Power Electronics Division grew $2.2 million to $2.2 million as a direct result of the acquisition of Technipower LLC, which closed August 17, 2006. Revenue in the Motive Power Division was $0.04 million compared with $0.07 million in 2005. This revenue shift reflects the company’s effort to focus on building critical mass of revenue and profitability through product diversification into Power Electronics as a complement to its Motive Power products and technology.
Gross Profit for the year ended December 31, 2006 was $0.6 million, or 27% of revenue, up dramatically compared with the Gross Loss of ($0.01) million, for the year ended December 31, 2005. Net cash used by operating activities was ($1.2) million for the year ended December 31, 2006 compared with ($1.2) million used in the year ended December 31, 2005.
Fourth quarter 2006 financials provide an early indication of the significant impact that the Technipower acquisition will have on the 2007 financial statements. Fourth quarter 2006 revenue was $1.45 million and order backlog as at December 31, 2006 was at an all-time high of approximately $2.5 million.
Net loss for the year ended December 31, 2006 was ($16.3) million, or ($0.60) per share, compared with a net loss of ($6.6) million, or ($1.00) per share, for the same period in 2005. Major contributors to the increase in net loss for the year (as compared with 2005) were non-cash charges of $5.6 million related to the extinguishment of debt, $3.3 million associated with the goodwill impairment, and $1.8 million in deferred compensation.
