XZERES Reports 295% Revenue Growth for 9 Months Ended Nov 30, 2011;; and a Significant Increase in Current Backlog, and

^{Published on 2012-01-17 12:40:21 - Market Wire}
 

XZERES Reports 295% Revenue Growth for 9 Months Ended Nov 30, 2011;... -- WLSONVILLE, Ore., Jan. 17, 2012 /PRNewswire/ --

WLSONVILLE, Ore., Jan. 17, 2012 /PRNewswire/ -- XZERES Corp. (OTCBB: XPWR), designer, developer and producer of distributed generation wind power systems, and power management/efficiency devices for the renewable and clean energy markets, today reported nine month and Q3 results for the period ending November 30, 2011, and updated the forecast in response to stronger than expected new orders and accelerating business momentum in the UK since third quarter end.

Financial Results

Revenue for the nine month period ended November 30, 2011 increased 295% to $3,312,569, as compared to $837,403 for the like year ago period.  The Company reported a net loss of $5.85 million for the nine months ended November 30, 2011, as compared to a $3.24 million loss for the nine months ended November 30, 2010.  The higher loss was primarily due to increased costs for sales, marketing and G&A expenditures as XZERES rapidly expanded its presence internationally.

For the third fiscal quarter, revenues grew by 97% to $927,451, as compared with $471,534 for the like year ago quarter, and included the first substantial participation (54%) of sales to the UK.  The Company reported a net loss in Q3 of $2.1 million, compared to a 1.27 million loss in the prior period.  "Order flow in the third quarter grew dramatically but shipments grew less rapidly due to the timing of when the orders were received in the quarter, " stated Frank Greco, CEO.  "With the accelerating sales momentum in the UK, we entered the fourth quarter and the beginning of 2012 with the largest backlog in our history," stated Greco.

As highlighted in recent announcements, the Company has put considerable effort toward expanding internationally and building a strong presence in the UK, a market which experienced 160%+ growth in Small Wind systems during 2011.  The Company signed an exclusive agreement with the largest wind turbine dealer in the UK with minimum unit quantities expected to reach at least $5 million annually.  Additionally, the Company maintains its own sales team operating in the southern part of the country, in the non-exclusive areas.  These combined efforts are now producing strong order rates from the UK.  The Company is also looking forward to delivering units in early 2012 to Vietnam, under the previously announced opportunity for Island electrification with the Republic of Vietnam.  New dealers have also been signed in other areas, including France, Germany, Portugal, and Australia.

According to XZERES CEO, Frank Greco, recent developments on several fronts have "transformed the sales outlook for the company, and greatly accelerated expectations for calendar 2012 and beyond."  "The international stage has been set for XZERES to generate a much higher level of sales activity and we are now beginning to see that trend materialize," stated David N. Baker, XZERES Chairman and Co-Founder.  "We enter 2012 with a high degree of confidence that this year will be XZERES' breakout year and demonstrate our accelerated growth which we believe will enable us to reach profitability."

With the company well positioned internationally, XZERES is working to meet its working capital needs to enable rapid execution of the already realized backlog and handle the continued anticipated sales momentum this year.  "The growing order backlog brings along with it a need to have in place more capital to finance and fulfill orders and reach profitability.  The company expects to achieve this objective through a combination of means and methods, and promises to make every decision with an eye toward enhancing shareholder value now and into the future," commented Baker.

Current Backlog

As a result of strong orders, especially from the UK market, the Company's current backlog of existing orders totals more than $3.5 Million.  "Given that we are in just the first two weeks of the new year, it's exciting to see our backlog surpassing more than the last three quarters combined," stated Greco.  This reflects the anticipated momentum that we have been highlighting in previous releases. The anticipation is now turning into reality," further commented Greco.

Not included in the growing backlog is the recent increase of Power Efficiency dealers we have acquired.  In the last eight weeks we have signed 23 dealers who will purchase and distribute in various parts of the country as well as internationally.  The dealer pipeline growth is expected to continue.  The company has expanded its product line offerings which ramp up in size providing the ability to service larger facilities. Due to this expansion, there are large direct enterprise opportunities being developed to further enhance the company's reach in its Power Efficiency products.  Although the major growth in 2012 is in the distributed wind sector, the Power Efficiency products are forecasted to contribute over $3 million in revenues.

2012 Outlook and Management Forecast– a $20 million minimum target

Based on the sharp increase in order backlog, existing turbine and power efficiency dealer agreements in place, and the overall momentum in the business, our goal is to generate at least $20 million in sales for Calendar 2012; based on the following key inputs:

• U.S. Turbine Sales remain flat with 2011 run rate
• UK Exclusive dealer generates their stated minimums
• XZERES UK sales team generates 50% of the exclusive dealer's volume (Note: to date, our sales team is performing at double this goal).
• Vietnam contributes 50% of their stated goals for 2012
• Upside to the forecast includes order contributions from recently signed dealers in other countries, including France, Italy, Australia and South America

While we are projecting a significant increase in sales for 2012, when dissecting each of the key inputs, we believe the individual goals are realistic and possibly conservative, with upside areas in other parts of the world.  The above forecast is contingent upon successfully addressing the working capital needs (as referenced in the 10Q filing).

Additionally, despite potential quarterly fluctuations, due to product development activities and establishment of production processes associated with bringing new products to market, on an annual basis, we also still expect gross margins to rise substantially in 2012 from historic levels.  We also expect certain costs to actually decrease as we reduce certain activities no longer needed to support the higher growth phase we have entered.  Thus, other key goals for 2012, in addition to the rapid revenue increase, will be higher gross margins and lower actual operating costs.  "Profitability remains our top priority for 2012," ended Frank Greco.

For more information about XZERES or any of its products, please visit [ www.xzeres.com ] and [ www.xzeresenergy.com ] as well as [ www.xzeres.co.uk ]

For additional information about the Company and these results, please refer to the Company's 10Q report filed with the SEC and [ www.sec.gov ]

For more information about XZERES or any of its products, please visit [ www.xzeres.com ] and [ www.xzeresenergy.com ] as well as [ www.xzeres.co.uk ]

Media Contact:
XZERES Investor Relations
503-388-7331

About XZERES:

XZERES Corp. is a renewable energy and clean energy technology company that designs, develops, manufactures and markets distributed generation, wind power systems as well as power management and power efficiency solutions for the commercial, light industrial and residential markets.  Our grid connected and off grid wind turbine systems, which consist of our 2.5kW and 10kW devices and related equipment, are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural and island electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure and government applications. Our wind power systems are focused on distributed energy, where a specific machine's energy output is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our customers take advantage of their local net-metering rules within the United States and Feed In Tariffs that are often available in Europe and Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs to carry the energy produced to another location and are therefore well suited for remote electrification, available with or without a battery coupled solution.  Our power management and power efficiency solutions are deployed primarily for commercial and light industrial applications, and secondarily residential usage and target both urban and rural customers.  For more information please see the Company's web site at [ www.xzeres.com ] and [ www.xzeresenergy.com ]

Forward Looking Statements and Safe Harbor Statement:

The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. XZERES Corp. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These "Forward-looking statements" are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results included in our Exchange Act reports, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates," "believes," "can," "could," "estimates," "expects," "goals," "forecasts," "hopes," "intends," "may," "plans," "projects," "targets," "will," and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) new business models may be more difficult and/or take longer than anticipated, may be more costly than anticipated and may have unanticipated adverse effects relating to the Company's business; (b) the challenge of compensating and retaining key employees; (c) the impact on the Company and our customers from the current domestic and international economic, geo-political and financial market conditions; (d) the success of our new products and new business models in achieving their expected benefits; (e) to perform as expected without material defects; (f) to be qualified and accepted by our customers, (g) to successfully compete with products, systems, technologies and services offered by our competitors; (h) we may not be successful in undertaking the steps currently planned in order to further develop the business; and (i) other risks and uncertainties described in our filings with the Securities and Exchange Commission.

Neither XZERES Corp. management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission that are available on the SEC's web site located at [ www.sec.gov ]. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We assume no obligation to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

SOURCE XZERES Corp.

RELATED LINKS
[ http://www.xzeres.com ]
[ http://www.xzeresenergy.com ]