TARPON SPRINGS, Fla., Sept. 7 /PRNewswire/ -- Solomon Technologies, Inc. (BULLETIN BOARD: SOLM) , a developer and manufacturer of high-efficiency regenerative electric power drive systems as well as high-voltage, high-power direct current power supplies and power supply systems, today announced its operating results for the quarter ended June 30, 2007.
Revenue for the quarter ended June 30, 2007 was $1.6 million compared with $8,000 for the quarter ended June 30, 2006. Revenue for the six months ended June 30, 2007 was $3.1 million as compared with $13,000 for the six months ended June 30, 2006. For both periods, revenues in the Company's Power Electronics Division contributed to all of the growth as a direct result of the acquisition and effective integration of Technipower LLC in August 2006.
"The substantial revenue growth is reflective of the Company's effort to focus on building critical mass of revenue and profitability through product diversification into Power Electronics as a complement to our Motive Power products and technology," said Gary Brandt, Chief Executive Officer. "Our financial results reveal the profitability inherent in the Power Electronics division which underscores the importance of our roll-up strategy."
"We have taken steps to establish a strong platform from which we expect to add revenue on an accretive basis through acquisitions," commented Brandt. "The recently completed Deltron acquisition, combined with the pending Unipower acquisition and others contemplated, are indicative of our commitment to building a business which not only addresses the growing market demand for high-efficiency power electronics and energy conversion devices, but also delivers positive financial returns. Combined with Unipower, we are on track to achieve our goal of annualized sales of $25 million by the end of this year and well on our way to the 2009 goal of $100 million."
Brandt noted that order backlog at June 30, 2007 was at an all-time high of approximately $3.5 million, up $1 million from $2.5 million at December 31, 2006.
Gross profit for the quarter ended June 30, 2007 was $801,755 or 49% of revenue, up dramatically from gross profit of $4,000, for the quarter ended June 30, 2006. Gross profit for the six months ended June 30, 2007 was $1.45 million, or 47% of revenue, compared with gross profit for the same period in 2006 of $7,000. Operating loss for the quarter ended June 30, 2007 was $800,000 compared with an operating loss of $480,000 for the same period in 2006. Operating loss for the six months ended June 30, 2007 was $1.46 million compared with an operating loss of $1.68 million for the same period in 2006. Net loss for the six months ended June 30, 2007 was $6.51 million, or $0.18 per share, compared with a net loss of $8.1 million, or $0.36 per share, for the same period in 2006.
CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call with investors on Monday, September 10, 2007 at 09:30 AM Eastern Time, to discuss the Company's
financial results for the second quarter ended June 30, 2007, and the recently completed acquisition of Deltron.
Gary G. Brandt, Chief Executive Officer will be joined by Jack Worthen, President Power Electronics Division and Sam Occhipinti, Chief Financial Officer on the call to review the company's financial and operational highlights.
Interested parties should call 1-866-293-8970 (US and Canada) or 1-913-312-1230 (International) five minutes in advance to participate. The call will also be open to all interested investors through a live audio Web broadcast accessible at the Solomon Technologies, Inc. corporate website, http://www.solomontechnologies.com/. For those unable to listen to the live broadcast, the call will be archived on the above-mentioned site.
Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc., through its Motive Power and Power Electronics divisions, develops, licenses, manufactures and sells precision electric power drive systems, including those utilizing its patented Electric Wheel(TM), Electric Transaxle(TM) and hybrid and regenerative technologies as well as direct current power supplies and power supply systems requiring high levels of reliability and ruggedness for defense, aerospace, marine, commercial, automotive, 'hybrid-electric' and 'all-electric' vehicle applications.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize the terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the company's filings with the Securities and Exchange Commission. The forward- looking statements contained in this release speak only as of the date hereof, and the company undertakes no obligation to correct or update any forward- looking statements, whether as a result of new information, future events or otherwise.
