Sustainable Energy Releases Audited Financial Statements and MDA and Update
Sustainable Energy Technologies Ltd. has filed its Audited Consolidated Financial Statements for the year ending September 30, 2011 along with Management’s Discussion and Analysis thereof. The Company has also filed an updated Annual Information Form.
Operational Results:
– Product sales revenues for the year ended September 30, 2011 increased 81% to $3,867,910 compared to $2,120,346 for 2010. Revenues for the three months ended September 30, 2011 were $1,004,425 compared to $737,968 in revenues for the same period in 2010. Product sales revenues were negatively impacted in Q3 and Q4 by a number of politically driven factors in the Ontario market which was core to the Company’s strategy for 2011.
– The Company has successfully demonstrated market acceptance of its products, which are reporting 99.7% reliability. In Ontario, the company took a 15% share of its target market during the 1st half. In the US, it secured a 23 MW long term OEM supply contract, and is building relationships with several of the leading national distributors for US distribution in 2012, as a low cost alternative to micro-inverters.
– The Company is meeting its manufactured cost targets. Inverter product margins averaged 26% over the year in low volumes and will be above 36% at current market prices by the end of this year.
– The Company has materially reduced its fixed operating costs. Quarterly costs for Q1, 2012 are less than 50% of Q1, 2011 levels, with further efficiencies targeted for the first half 2012.
– During Q1, 2012 the Company expanded its product portfolio to include DC side peripherals which have the potential to materially increase revenues per sale on sales to system integrators.
– Core technology development is now complete. The base platform has been certified for grid connection in all the major European and North American markets. The completion of a downsized 3kW product later this year will enable customers to service a full array of system designs and nameplate capacities with very high granularity.
"We achieved all the main operational goals set for the Company in 2011 at this time last year," said Michael Carten, CEO of Sustainable Energy. "We are meeting our manufactured cost targets and averaging very respectable 26% average margins on the core inverter product. We have also cut fixed operating cost 50%, materially lowering our breakeven point."
"We have been building distribution channels in the US market and we are gaining traction in that market with leading systems integrators. Power optimization products, especially micro-inverters, are quickly changing the solar landscape in the US, but encountering resistance on larger projects due to higher installed costs and concerns about long term serviceability. We are the beneficiary of this resistance since we deliver the same value propositions as micro-inverters but with the lower cost and easy serviceability of conventional inverters."
We are especially excited about the grid -tie energy storage potential which may prove to be our greatest value creator," commented Carten. "We have a material efficiency advantage with grid-connected battery systems, as well as a patented control topology, which efficiently integrates batteries with solar PV to increase the value of solar to the power grid. According to IMS Research, more than 5% of all solar inverters shipped in 2015 will be equipped with energy storage – approximately 2.25 GW."
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