WATERLOO, ON, July 15 /CNW/ - ARISE Technologies Corporation ("ARISE" or "the Company") (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced preliminary financial results for the three months ended June 30, 2010. ARISE cautions that these results are based on unaudited preliminary Company data and may be subject to final adjustment.
The preliminary unaudited results indicate that revenue for Q2 2010 is expected to total approximately $15.3 million, which represents a 5% decrease from the $16.2 million in Q1 2010 and a 131% increase over the $6.6 million in Q2 2009.
Shipments for the second quarter of 2010 where 11.8MW, down 15% from the 13.9MW in Q1 2010 but 312% higher than the 2.9MW shipped in Q2 2009. The preliminary results indicate that inventory levels remain at the low end of the Company's target range with a small increase in inventory levels at the end of Q2 2010 compared with the end of Q1 2010.
The reduction in revenue and shipments from Q1 2010 to Q2 2010 reflects the one-time shipment of 4.7MW of older inventory in Q1 2010, which represented 21% of PV cell revenue and 34% of shipments (in MW) in that quarter. In Q2 2010, the Company started a major "tolling" contract with a customer that is providing their own unique full square mono wafers. This reduces revenue on a per unit basis, as ARISE does not purchase or sell the wafers being "tolled", however, it does not impact the gross profit compared to the typical supply model where ARISE purchases the wafers for its PV cells.
Revenue for the first half of 2010 is expected to be $31.4M, up 127% from the $13.8M in the first half of 2009. Shipments were 25.7MW for the first half of 2010, an increase of 396% over the 5.2MW shipped in the first half of 2009. The Company also reduced overall bank debt by (euro)5.9 million in Q2 2010.
"During the second quarter, we saw further improvements in our business and the ongoing increase in demand for PV solar cells," said Vern Heinrichs, ARISE's President and Chief Executive Officer. "The European and Ontario solar markets are very active and we expect to continue to see strong demand throughout 2010 and into 2011 for PV cells, modules and systems. We currently have more demand than capacity for our PV cells and have our customers on allocation."
"As we approach the second anniversary of volume production of PV Cells in Germany on July 16th, ARISE has now shipped over 52MW of PV cells representing more than $95 million in total revenue," concluded Mr. Heinrichs.
In early August, ARISE expects to release its Q2 2010 financial results and hold a conference call. Details on the timing of the call will be provided closer to the release.
About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is dedicated to becoming a leader in high-performance, cost-effective solar technology. The company operates through three divisions. The PV Cell Division manufactures PV (photovoltaic) cells at its first manufacturing plant opened in April 2008 in Bischofswerda, Germany. The division is developing proprietary technology with a target of achieving a step-by-step progression to a high-efficiency level of greater than 20%. The PV Silicon Division is using a proprietary method to produce silicon at 7N+ high-purity (99.99999% purity) for PV cell applications, based on a simplified chemical vapor deposition process. The division is focusing on scaling up its process to provide ARISE with control over its supply, costs, and quality. The PV Systems Division has been providing PV solutions for solar farms and rooftop installations since 1996 throughout North America. ARISE is planning to expand its systems business in Ontario under the Ontario FIT (Feed-In Tariff) program.
The company's shares are listed on the Toronto Stock Exchange under the symbol APV and on the Frankfurt Open Market Exchange under the symbol A3T. Additional information is available at www.arisetech.com and www.sedar.com.
Forward-Looking Statements and Risk Factors
Certain statements in this news release may be considered to be forward-looking. Such statements are based on management's current expectations, estimations, and assumptions based on experience, trends, and other factors that are subject to the significant risks and uncertainties described in our regulatory filings. Please refer to these. Such risks and uncertainties may include, but are not limited to, the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, the requirement for additional capital, high debt levels, negative working capital levels, lack of profitability, risks associated with manufacturing, industry supply levels, competitive pricing pressures and misjudgements in the course of preparing forward-looking statements.
Risk factors relating to ARISE are discussed in the Risk Factors section of ARISE's Annual Information Form and under the headings Liquidity and Capital Resources and Risk and Uncertainties in ARISE's year-end Management's Discussion and Analysis which are or will be available at www.sedar.com. These factors should be considered carefully, and readers should not place undue reliance on ARISE's forward-looking statements.
ARISE assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
SOURCE ARISE TECHNOLOGIES CORPORATION
For further information: For further information: ARISE Technologies Corporation, 65 Northland Road, Waterloo, Ontario, Canada, N2V 1Y8, Doug McCollam, Chief Financial Officer, (519) 772-5706, Doug.McCollam@arisetech.com, www.arisetech.com; Investor Relations: Glen Williams, The Equicom Group, (416) 815-0700 ext. 272, email@example.com