11/30/2010
CATCH THE WIND REPORTS THIRD QUARTER 2010 FINANCIAL RESULTS
- Completes operational review and takes action to optimize use of capital -
- Amends Services Agreement with Optical Air Data Systems -
Catch the Wind Ltd. (TSX-V: CTW), providers of feed-forward, intelligent utility scale wind turbine performance improvement systems, today reported its financial results for the three- and nine-month periods ended September 30, 2010. All figures are in U.S. dollars unless otherwise stated.
"While we experienced considerable progress in the third quarter given our new customer agreements and growing sales pipeline, our developments subsequent to quarter end are even more encouraging and will help to accelerate our momentum in the near term," said Phil Rogers, President and CEO of Catch the Wind, Inc. "Most significantly, we closed an equity financing that generated gross proceeds of $8.7 million and we have implemented a number of actions designed to optimize our use of capital."
Third Quarter Highlights
Initiated a review of the key aspects of the Company's business with the aid of an external financial advisor. The review has led the Company to take a number of actions with the goals of reducing its burn rate and strengthening its balance sheet. Key among these actions include amending of an engineering services agreement with Optical Air Data Systems, LLC and offering the Falcon 50 aircraft for lease or charter to third parties, exploring options to sell Company's interest in Falcon Fifty LLC.
· Signed an exclusive multi-million dollar distribution agreement with AXYS Technologies with a minimum purchase commitment of 47 Vindicator® LWS units. AXYS will bundle the Vindicator® LWS units with its floating platforms and sell the combined products for maritime wind resource assessment applications.
· Signed a six-month evaluation agreement with AWS Convergence Technologies, owner and operator of the WeatherBug brand of professional and consumer weather products and services, to evaluate the incorporation of the Vindicator® LWS into its network of more than 8,000 weather stations.
Signed a sales agreement with enXco, a leading company that develops, constructs, operates and manages renewable energy projects throughout North America.
· Signed an agreement with GL Renewables Certification, an independent certification body for renewable energies, to certify safety and performance of the Company's Vindicator® LWS. The agreement is expected to accelerate the Company's sales cycle.
· Appointed Christopher Lowe, a senior financial executive with more than 20 years of experience in the investment banking and energy sectors, as an independent director of the Company and Chairman of the Audit Committee.
· Appointed Robin Roge, CPA, as acting Chief Financial Officer. Ms. Roge has more than 25 years of accounting and financial reporting experience, working with a number of public and private companies.
Highlights Subsequent to Quarter End
· Closed a private placement offering of 17,316,359 units and 5,665,588 shares of the Company for gross proceeds of CDN $8,679,680. Net proceeds will be used for production optimization of the Vindicator® LWS, sales, marketing, customer trials and for general working capital purposes.
· Amended its support services agreement with Optical Air Data Systems, LLC.
Financial Performance
Catch the Wind recognized revenue of $7,500 for the three- and nine-month periods ended September 30, 2010. The revenue is attributable to a rental fee charged for the Company's Racer's Edge® Laser Wind Sensor, the world's first hand-held device that provides accurate wind speed and direction measurement data for use in sailing, boating and other sporting events. As reported previously, Catch the Wind operated as a development stage company focused on the development and commercialization of its wind sensor products through the first six months of 2010. As a development stage company, the Company netted cash receipts from product sales against capitalized development costs. As a result, the Company did not commence recognition of any revenue until the start of the third quarter, effective July 1, 2010.
Operating expenses for Q3 of FY2010 were $4.2 million, up from $3.6 million for the corresponding period of last year. The increase in operating expenses is primarily attributable to the growth of the company, particularly as it progressed from a development stage company to a commercial stage enterprise. On a nine-month basis, operating expenses totaled $12.0 million for FY2010 and $7.4 million for FY2009. The increase in expenses is chiefly due to the growth of the Company and the accounting treatment of engineering and research and development expenses as non-capitalized costs.
Catch the Wind recorded a net loss for Q3 FY2010 of $4.1 million, or $0.07 per fully diluted share. This compares to a net loss of $3.6 million, or $0.07 per share, for the corresponding period of FY2009. On a sequential basis, Catch the Wind had a net loss of $4.4 million or $0.08 per fully diluted share for Q2 FY2010.
On a year-to-date basis, Catch the Wind had a net loss of $11.8 million, or $0.21 per share, for FY2010 compared to a net loss of $7.4 million, or $0.16 per share, for FY2009. Net cash usage for the third quarter of FY2010 was approximately $3.4 million. At September 30, 2010, Catch the Wind had cash and cash equivalents of $3.2 million. This compares to $10.6 million at December 31, 2009.
Outlook
"We continue to receive very positive feedback from customers on the performance of the Vindicator® LWS," Mr. Rogers also said. "This ongoing validation of the benefits that our technology delivers to turbine manufacturers as well as owners and operators of wind farms is very encouraging and suggests the potential for follow-on orders in 2011 and beyond."
Catch the Wind's financial statements and related Management's Discussion & Analysis are available via SEDAR as well as through the Company's website, www.catchthewindinc.com.
For further information:
www.catchthewindinc.com
- Amends Services Agreement with Optical Air Data Systems -
Catch the Wind Ltd. (TSX-V: CTW), providers of feed-forward, intelligent utility scale wind turbine performance improvement systems, today reported its financial results for the three- and nine-month periods ended September 30, 2010. All figures are in U.S. dollars unless otherwise stated.
"While we experienced considerable progress in the third quarter given our new customer agreements and growing sales pipeline, our developments subsequent to quarter end are even more encouraging and will help to accelerate our momentum in the near term," said Phil Rogers, President and CEO of Catch the Wind, Inc. "Most significantly, we closed an equity financing that generated gross proceeds of $8.7 million and we have implemented a number of actions designed to optimize our use of capital."
Third Quarter Highlights
Initiated a review of the key aspects of the Company's business with the aid of an external financial advisor. The review has led the Company to take a number of actions with the goals of reducing its burn rate and strengthening its balance sheet. Key among these actions include amending of an engineering services agreement with Optical Air Data Systems, LLC and offering the Falcon 50 aircraft for lease or charter to third parties, exploring options to sell Company's interest in Falcon Fifty LLC.
· Signed an exclusive multi-million dollar distribution agreement with AXYS Technologies with a minimum purchase commitment of 47 Vindicator® LWS units. AXYS will bundle the Vindicator® LWS units with its floating platforms and sell the combined products for maritime wind resource assessment applications.
· Signed a six-month evaluation agreement with AWS Convergence Technologies, owner and operator of the WeatherBug brand of professional and consumer weather products and services, to evaluate the incorporation of the Vindicator® LWS into its network of more than 8,000 weather stations.
Signed a sales agreement with enXco, a leading company that develops, constructs, operates and manages renewable energy projects throughout North America.
· Signed an agreement with GL Renewables Certification, an independent certification body for renewable energies, to certify safety and performance of the Company's Vindicator® LWS. The agreement is expected to accelerate the Company's sales cycle.
· Appointed Christopher Lowe, a senior financial executive with more than 20 years of experience in the investment banking and energy sectors, as an independent director of the Company and Chairman of the Audit Committee.
· Appointed Robin Roge, CPA, as acting Chief Financial Officer. Ms. Roge has more than 25 years of accounting and financial reporting experience, working with a number of public and private companies.
Highlights Subsequent to Quarter End
· Closed a private placement offering of 17,316,359 units and 5,665,588 shares of the Company for gross proceeds of CDN $8,679,680. Net proceeds will be used for production optimization of the Vindicator® LWS, sales, marketing, customer trials and for general working capital purposes.
· Amended its support services agreement with Optical Air Data Systems, LLC.
Financial Performance
Catch the Wind recognized revenue of $7,500 for the three- and nine-month periods ended September 30, 2010. The revenue is attributable to a rental fee charged for the Company's Racer's Edge® Laser Wind Sensor, the world's first hand-held device that provides accurate wind speed and direction measurement data for use in sailing, boating and other sporting events. As reported previously, Catch the Wind operated as a development stage company focused on the development and commercialization of its wind sensor products through the first six months of 2010. As a development stage company, the Company netted cash receipts from product sales against capitalized development costs. As a result, the Company did not commence recognition of any revenue until the start of the third quarter, effective July 1, 2010.
Operating expenses for Q3 of FY2010 were $4.2 million, up from $3.6 million for the corresponding period of last year. The increase in operating expenses is primarily attributable to the growth of the company, particularly as it progressed from a development stage company to a commercial stage enterprise. On a nine-month basis, operating expenses totaled $12.0 million for FY2010 and $7.4 million for FY2009. The increase in expenses is chiefly due to the growth of the Company and the accounting treatment of engineering and research and development expenses as non-capitalized costs.
Catch the Wind recorded a net loss for Q3 FY2010 of $4.1 million, or $0.07 per fully diluted share. This compares to a net loss of $3.6 million, or $0.07 per share, for the corresponding period of FY2009. On a sequential basis, Catch the Wind had a net loss of $4.4 million or $0.08 per fully diluted share for Q2 FY2010.
On a year-to-date basis, Catch the Wind had a net loss of $11.8 million, or $0.21 per share, for FY2010 compared to a net loss of $7.4 million, or $0.16 per share, for FY2009. Net cash usage for the third quarter of FY2010 was approximately $3.4 million. At September 30, 2010, Catch the Wind had cash and cash equivalents of $3.2 million. This compares to $10.6 million at December 31, 2009.
Outlook
"We continue to receive very positive feedback from customers on the performance of the Vindicator® LWS," Mr. Rogers also said. "This ongoing validation of the benefits that our technology delivers to turbine manufacturers as well as owners and operators of wind farms is very encouraging and suggests the potential for follow-on orders in 2011 and beyond."
Catch the Wind's financial statements and related Management's Discussion & Analysis are available via SEDAR as well as through the Company's website, www.catchthewindinc.com.
For further information:
www.catchthewindinc.com
- Source:
- Catch the Wind Inc.
- Author:
- Claudia Jaques
- Email:
- cjaques@catchthewindinc.com
- Link:
- www.catchthewindinc.com/...
