ARISE Technologies Corporation Reports Third Quarter Fiscal 2007 Results



    WATERLOO, ON, Nov. 12 /CNW/ - ARISE Technologies Corporation (TSX-V: APV)
(ADAX: A3T), today reported third quarter results for the three months ended
September 30, 2007 (all figures in Canadian dollars and Canadian GAAP).
    Revenue for the third quarter of fiscal 2007 was $355,611, up 17% from
$305,014 in the previous quarter and up 75% from $203,205 in the same quarter
of last year. The revenue relates solely to commercial and residential PV
system sales and installations.
    "ARISE's third quarter results were in line with expectations," said Ian
MacLellan, President and Chief Executive Officer. "The growth is driven by the
introduction of the Ontario Renewable Energy Standard Offer Program in 2006.
We are pleased with our position in the Ontario market today and we expect
that our early successes in signing Letters of Intent for solar park PV
systems in Ontario will continue and extend our business momentum.
Additionally, we are excited with the progress and results in our solar grade
silicon program and our activities in Germany continue to be on schedule. We
expect initial production at our solar cell manufacturing plant to begin in
the second quarter of 2008."
    Net loss for the quarter was $2.7 million, or $0.04 per share diluted,
compared with a net loss of $3.4 million, or $0.06 per share diluted, in the
prior quarter and a net loss of $0.7 million, or $0.02 per share diluted, in
the same quarter last year. The total of cash and cash equivalents was $9.0
million as at September 30, 2007, compared to $17.9 million at the end of the
previous quarter, a decrease of $8.9 million over the prior quarter. In
addition to cash used in operating activities in the amount of $2.2 million,
uses of cash in the quarter included capital expenditures of approximately
$5.3 million, prepayments for silicon wafer supply contracts of $1.4 million,
partially offset by issuance of capital stock of $1.0 million.

    
    Highlights of the Third Quarter Include:

    -   Purchase of site in Bischofswerda, Germany for solar cell
        manufacturing plant
    -   Agreement with HOCHTIEF Construction AG and commencement of
        construction of solar cell manufacturing plant
    -   Completion of first major milestone of the PV Silicon Feedstock
        Program with commissioning of Silicon Refining Furnace version 3.1
    -   Signing of four non-binding Letters Of Intent to provide complete
        solar park PV Systems totaling 14.5MW to be installed over the next
        two to three years
    -   Signing of agreements to install grid connected solar electric PV
        Systems on 28 residences through the West Toronto Initiative for
        Solar Energy (WISE)
    -   Completion of definitive agreements in respect of credit facilities
        totaling up to EUR 47.05 million with Commerzbank AG
    -   Laying of cornerstone for solar cell production plant in
        Bischofswerda, Germany

    Highlights Subsequent to Quarter End Include:

    -   Completion of $34.5 million bought deal common share offering
    -   Signing of a definitive contribution agreement with SDTC for up to
        $6.4 million for the Silicon Feedstock Pilot Plant project
    -   Receipt of an initial EUR 2.0 million of a EUR 12.4 million incentive
        grant from the Saechsische AufbauBank (SAB)
    -   Entering into additional non-binding Letters Of Intent to provide
        complete solar park PV Systems, bringing total to 44MW
    

    About ARISE

    ARISE Technologies is dedicated to accelerating the use of solar energy
in mainstream North American markets. The Company has three operations:
Photovoltaic (PV) Technology, Silicon Feedstock and Systems. ARISE Common
shares are listed on the TSX Venture Exchange under the trading symbol APV and
on the Frankfurt Stock Exchange Open Market under the symbol A3T. Additional
information is available at www.arisetech.com and www.sedar.com.

    This news release contains forward-looking statements within the meaning
of the Canadian securities laws, including statements relating to ARISE's
anticipated growth during the fiscal year and plans relating to ARISE. The
terms and phrases, "expected", "growth is driven", "continue", "momentum" and
similar terms and phrases are intended to identify these forward-looking
statements. Forward-looking statements are based on estimates and assumptions
made by ARISE in light of its experience and its perception of historical
trends, current conditions and expected future developments, as well as other
factors that ARISE believes are appropriate in the circumstances. Many factors
could cause ARISE's actual results, performance or achievements to differ
materially from those expressed or implied by the forward-looking statements,
including, without limitation, risks relating to product development, limited
protection of patents and proprietary rights, expansion risk, manufacturing
risk, new product market acceptance, competition, availability of PV silicon
and manufacturing inputs, government subsidies and demand for solar modules.
These risk factors and others relating to ARISE are discussed in greater
detail in the "Risk Factors" section of ARISE's Annual Information Form and
ARISE's MD&A (copies of which filings may be obtained at www.sedar.com). These
factors should be considered carefully, and readers should not place undue
reliance on ARISE's forward-looking statements. ARISE has no intention and
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

    
                       ARISE Technologies Corporation
                     Interim Consolidated Balance Sheets
                                  Unaudited


                                               September 30,     December 31,
                                                   2007              2006
                                               --------------  --------------

                                   Assets

    Current assets

      Cash and cash equivalents
       (Note 4)                              $   9,049,163       $   198,222
      Accounts receivable                          295,464           179,927
      Share subscription receivable                      -         1,878,600
      Inventory                                  1,051,841           374,262
      Prepaid expenses                           6,023,364            36,648
    -------------------------------------------------------------------------
                                                16,419,833         2,667,659
    -------------------------------------------------------------------------

    Capital assets, net                         12,491,728            83,841
    -------------------------------------------------------------------------

    Other assets, net                               36,485            13,241
    -------------------------------------------------------------------------
                                             $  28,948,046       $ 2,764,741
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                 Liabilities

    Current liabilities
      Accounts payable and
       accrued liabilities                   $   5,263,335       $   885,808
      Deferred revenue                              57,763            66,028
    -------------------------------------------------------------------------
                                                 5,321,098           951,836
    -------------------------------------------------------------------------
    Commitments and contingencies
     (Notes 9 and 14)


                      Shareholders' Equity (Deficiency)

    Capital stock (Note 7a)                     38,893,779        11,433,506
    Contributed surplus (Note 7b)                3,783,261         1,958,673
    Deficit                                    (19,050,092)      (11,579,274)
    -------------------------------------------------------------------------
                                                23,626,948         1,812,905
    -------------------------------------------------------------------------
                                             $  28,948,046       $ 2,764,741
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Approved by the Board:

    (Signed) Ian MacLellan     Director
    ---------------------------

    (Signed) Harold Alexander  Director
    ---------------------------



                       ARISE Technologies Corporation
             Interim Consolidated Statements of Loss and Deficit
                                  Unaudited


                   3 months ended September 30,  9 months ended September 30,
                           2007           2006           2007           2006
                  -------------- -------------- -------------- --------------

    Sales         $     355,611  $     203,205  $     847,426  $     579,216
    Cost of goods
     sold               326,119        170,544        771,125        466,711
    -------------------------------------------------------------------------
    Gross profit         29,492         32,661         76,301        112,505
    -------------------------------------------------------------------------

    Expenses

      Research and
       development    1,112,893         60,438      3,141,626        349,966
      General and
       administrative 1,447,614        553,493      4,175,075      1,435,728
      Selling and
       marketing        248,711         52,131        423,045        189,003
      Depreciation
       of capital
       assets            13,838            652         18,856          1,955
    -------------------------------------------------------------------------
                      2,823,055        666,714      7,758,602      1,976,652
    -------------------------------------------------------------------------

    Operating loss   (2,793,564)      (634,053)    (7,682,301)    (1,864,147)
    -------------------------------------------------------------------------

    Other expenses
     (income)
      Interest expense
       (income), net   (125,243)        16,866       (241,401)        77,726
      Foreign exchange
       (gain) loss       70,771                        29,917
      Deferred finance
       costs, net                                                     52,176
    -------------------------------------------------------------------------
                        (54,471)        16,866       (211,483)       129,902
    -------------------------------------------------------------------------

    Net loss for
     the period      (2,739,092)      (650,919)    (7,470,818)    (1,994,049)
    -------------------------------------------------------------------------

    Deficit,
     beginning
     of period      (16,311,000)   (10,025,463)   (11,579,274)    (8,682,333)
    -------------------------------------------------------------------------

    Deficit,
     end of
     period       $ (19,050,092) $ (10,676,382) $ (19,050,092) $ (10,676,382)
    -------------------------------------------------------------------------
    Loss per
     share -
     basic and
     diluted
     (Note 8)     $       (0.04) $       (0.02) $       (0.14) $       (0.08)



                       ARISE Technologies Corporation
                Interim Consolidated Statements of Cash Flows
                                  Unaudited

                   3 months ended September 30,  9 months ended September 30,
                           2007           2006           2007           2006
                  -------------- -------------- -------------- --------------
    Cash flows
     from operating
     activities
      Net loss for
       the period    (2,739,092) $    (650,919) $  (7,470,818) $  (1,994,049)
      Items which
       do not
       involve cash:
        Depreciation
         of capital
         assets           7,963            651         12,981          1,954
        Amortization
         of other
         assets           2,318          3,439          5,865          9,122
        Non-cash
         expense
         associated
         with warrants
         and secured
         convertible
         debentures                                                   52,177
        Issuance of
         capital stock
         for services                   27,947        214,488        267,219
        Stock-based
         compensation   550,000        169,822      1,558,887        356,994
    -------------------------------------------------------------------------
                     (2,178,811)      (449,060)    (5,678,596)    (1,306,583)

      Decrease
       (increase) in:
        Accounts
         receivable    (118,369)       (72,514)      (115,537)      (117,317)
        Inventory      (413,045)      (150,499)      (677,579)      (367,585)
        Prepaid
         expenses      (635,708)        66,444     (5,986,716)       (10,006)
      Increase
       (decrease) in:
        Accounts
         payable and
         accrued
         liabilities (1,162,469)         7,992      4,377,527     (1,431,737)
        Deferred
         revenue          5,035          3,035         (8,265)       (56,856)
    -------------------------------------------------------------------------
                     (4,503,367)      (594,602)    (8,089,166)    (3,290,084)
    -------------------------------------------------------------------------

    Cash flows from
     financing
     activities
      Issuance of
       capital stock
       for cash, net    956,493                    25,496,652      3,736,952
      Exercise of
       warrants          11,287          3,675      2,014,834        368,975
      Share
       subscription
       receivable                                   1,878,600
      Repayment of
       notes payable                                                (160,357)
    -------------------------------------------------------------------------
                        967,780          3,675     29,390,086      3,945,570
    -------------------------------------------------------------------------

    Cash flows from
     investing
     activities
      Proceeds
       disposal
       (purchase) of
       capital
       assets        (5,348,586)                  (12,449,978)
      Change in
       other assets      22,656                             -         (6,128)
    -------------------------------------------------------------------------
                     (5,325,930)             -    (12,449,978)        (6,128)
    -------------------------------------------------------------------------
    Net cash flow    (8,861,517)      (590,927)     8,850,941        649,358
    Cash and cash
     equivalents,
     beginning of
     period          17,910,680      1,242,807        198,222          2,522
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period  $ 9,049,163      $ 651,880    $ 9,049,163      $ 651,880
    -------------------------------------------------------------------------

    Supplemental
     disclosures of
     cash flows:

    Interest paid $           -  $      13,562  $       5,273  $     228,950
    -------------------------------------------------------------------------
    Income taxes
     paid         $           -  $           -  $           -  $           -
    -------------------------------------------------------------------------
    

    %SEDAR: 00017494E




For further information:

For further information: ARISE Technologies Corporation, 65 Northland
Road, Waterloo, Ontario, Canada N2V 1Y8, Tel. (519) 725-2244, Fax: (519)
725-8907, www.arisetech.com; Ian MacLellan, President & CEO, (519) 725-2244
Ext. 5707, ian.maclellan@arisetech.com, TSX Venture Exchange Symbol: APV

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ARISE TECHNOLOGIES CORPORATION

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