RE: RESULTS 4.2 MW in shipments during first six months of
2011 for total revenues
of $1.7 million; annualized operating cost
reduced by almost $2 million
from 2010 levels.
-- Sustainable expands distribution channels in
Ontario with leading
systems integrators electrical distributors
and module and tracker
manufactures -positioned for growth in 200MW
addressable market.
-- 23MW supply contract with tenKsolar marks US
market entry - 269 (1.4 MW)
units delivered to date.
-- SUNERGY gaining recognition from market leaders
in Europe for lower cost
and easily serviceable parallel solar solution.
-- Restructured manufacturing and supply
chain model enables lower
manufactured cost and more flexible market
response time for SUNERGY
production.
-- Technology breakthrough in Q2 sets stage
for lowest cost higher
efficiency product platform by September 2011.
-- Regulatory delays in Ontario's market start-up
slow solar product sales
across the board during Q2, resulting in lower
than anticipated product
sales revenues for the Quarter at $724,549.
-- Ontario Power Authority approval of 839
capacity allocation exempt (less
than 500kW) rooftop projects totaling 142 MW
signals improved market
conditions for balance of year. Combined
with 149MW microFIT backlog
brings total backlog to 291 MW.
-- New equity of $2.3 million plus $1.5 million
operating line with a
Canadian Chartered Bank secures cash reserves
needed to reach positive
cash flow.
"Q2 combined very positive outcomes with frustrating
bureaucratic delays in the Ontario market,"
said Michael Carten CEO of the Company.
"It is now clear that the parallel system design
is potentially one of the more disruptive factors
affecting the solar industry globally and we are
benefiting from investments by VC funded micro
inverter and power optimizer companies to evangelize
the parallel value proposition."
"Within Europe this has translated into new interest
from several leading thin film manufacturers and
distributors based on our cost and serviceability
advantages. In the next two Quarters, we expect to
see increased demand for the inverter especially
from customers in Italy and France."
"We are executing on our plan. A restructured supply
chain and manufacturing model is operational and set
to go; and we are exceeding manufactured cost targets.
We have built a strong presence in the Ontario
microFIT (less than 10kW) market from a standing start
with leading system integrators, electrical
distributors as well as module and tracker suppliers.
During Q2, we also secured our first major contract
in the US for an estimated 4,600 units, and we are
delivering on this contract."
"However inexplicable regulatory delays caught the
industry by surprise dramatically slowing demand
for solar products in Q2. This was partially
resolved by the announced approval of 142 MW of
capacity allocation exempt projects signaling the
intention of the Government to make this industry work."
"We are optimistic that the regulatory delays will
be resolved in the next few weeks. Nevertheless, we
have slowed production of Ontario product and deferred
Guelph until we have better visibility on demand in
the Province".