VRB Power Reports Second Quarter 2006 Financial ResultsAugust 29, 2006 by Jeff Shepard
VRB Power Systems Inc. reported its financial results for the three and six month periods ended June 30, 2006. Sales revenue and other income was $91,816 for the quarter and $182,922 for the six months compared to $23,325 and $36,513 for the comparative periods in 2005. Expenses were $2,763,173 for the quarter and $5,248,689 for the six months compared to $1,864,975 and $3,464,744 for the comparative periods in 2005. Net losses were $2,671,357 ($0.03 per share) for the quarter and $5,065,767 ($0.05 per share) for the six months compared to net income of $2,830,400 ($0.03 per share) and $1,338,789 ($0.01) per share for the comparative periods (the net income in the comparative periods included a gain of $4,467,050 on the disposal of the company's former subsidiary, Pinnacle VRB Limited).
The company also reported the highlights of its business year, including: the sale of a 120kWh VRB-ESS to Risø¸ National laboratory for evaluation by Ris&oslah;¸ and its industry partners in grid connected and grid independent wind applications in Denmark; and the order of a 10kWh VRB-ESS to its Australian distributor, Pinnacle VRB; the delivery of 10kWh systems to SOLON AG of Germany, University of Alaska, Fairbanks and, subsequent to the end of the period, a US telecoms provider and to VRB Power's distribution partner in Slovenia, Eurel Inzeniring Company.
"We continued to build momentum during the period." said Tim Hennessy, VRB Power Chairman & CEO. "Our focus at our assembly facility in Richmond continues to be putting in place the infrastructure and processes to enable us to grow our production capacity of cell stacks to meet growing demand. At the same time we made good progress on refining our designs, widening our supply chain for our key components and making our assembly processes more efficient to ensure that we continue to remain on track to achieve our target cost base for our products. During the period we strengthened our core engineering team further with the addition of several key appointments."
"This sale is our first sale of a system for wind applications within Europe. Wind generation is becoming more and more established in parts of Europe as a viable alternative to traditional generation, however, as the level of wind penetration increases in a number of European countries (in Denmark approximately 20% of their electricity consumption comes from wind power) the intermittent nature of the resource is starting to present problems. With VRB systems installed in wind applications in Japan and Australia, we believe that our technology is the most advanced wind coupled storage system in the world and that we can address issues of intermittency and enable full value to be realised for all wind generated electricity whether generated at peak or 'off peak' times."
"This sale to Ris&oslah;¸ will provide validation of our technology within the large Danish market and European wide and provides good impetus to our marketing efforts across Europe, which we see as a key market for our products," concluded Hennessy.