MicroPlanet Reports Q2 Results for 2008



    
    Stock Listing: MP:TSXV
    Stock Listing (US): MCTYF: OTC
    Outstanding Shares: 41.1 million
    Web Site: www.microplanet.com

    SEATTLE, WA, Aug. 12 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a clean
technology, energy conservation company reports second quarter consolidated
financial results for the three and six month periods ended June 30, 2008. All
dollar figures are reported in U.S. currency, unless otherwise stated.

    Corporate Highlights:

      -  Completed the first tranche of an equity financing for gross
         proceeds of C$6.9 million, providing funding to expand sales efforts
         and product offerings in addition to augmenting its investor base to
         include several new institutional investors

      -  Completed the design and testing of the next generation utility
         product and shipped the initial production units of the $6 million
         order for Ergon Energy in Australia

      -  Finalized the design of the new commercial 3-Phase product and
         completed the testing for functionality and UL/CSA certification

      -  MicroPlanet is in negotiations with 3 US Fortune 500 companies
         regarding additional sales orders after the successful completion of
         commercial pilot programs with these companies which demonstrated
         energy savings averaging an 8% reduction in kWh consumption

      -  Completed a pilot where the improved power quality delivered by
         MicroPlanet's technology dramatically reduced the customer's repair
         and maintenance costs on its equipment - the savings during the
         pilot period indicate a potential payback of less than one year.
    

    Bruce Lisanti, CEO of MicroPlanet commented, "The completion of
MicroPlanet's financing in June represents a major milestone for the Company
as well as a solid endorsement from the market that it believes in
MicroPlanet's clean technology solution to reducing energy consumption and
curbing greenhouse gas emissions. The proceeds from this financing will enable
the Company to further refine and expand its product offerings to deliver on
its existing backlog of orders."
    Lisanti continues, "In 2008 MicroPlanet has completed the development of
advanced products to fulfill customer orders. One meets the rigorous demands
of utility customers, and the other is a very efficient commercial unit that
reduces energy consumption and improves power quality. Launching two new
products in a year is a significant accomplishment for a company of any size,
and even more so for an early stage company like MicroPlanet. While we're
proud of our accomplishments, however, we don't plan on slowing down our
research and development efforts any time soon. We are already in the process
of developing several new product offerings to meet our customers' needs. All
of our products are built to fulfill orders. As our customers begin to
understand the capabilities of the technology, they have asked us to expand
the product line for other applications."
    Lisanti continues, "During the remainder of 2008, we plan to leverage
these products to convert multiple pilots and field tests into significant
commercial sales in 3 primary markets: energy savings for commercial and
industrial sites, energy savings for residential home builders and property
management companies and power quality and peak load reduction for electric
utilities. In addition to these existing markets, MicroPlanet is receiving an
increasing number of inquiries from its utility customers to assist with the
integration of renewable generation into their grids. MicroPlanet products
help to stabilize voltage fluctuations caused by wind and solar generation."
    As at June 30, 2008 commercial sales order backlog was approximately
$6.6 million compared to nil as at June 30, 2007. Revenues were $10,000 for
the three-month period ended June 30, 2008 (the "Quarter"), representing the
initial shipment of products to Ergon Energy. Revenues from deliveries against
the current order backlog are expected to grow substantially throughout 2008
and beyond.
    Expenses for the Quarter increased to $1,300,294 compared to $867,850 in
the same quarter in the prior year. Expenses include the cost of research and
development of the MicroPlanet technology and related products, identifying
and developing potential markets for the products and other related
activities. Some of the increase results from elevated research and
development and sales expenses related to the growth of the business.
Approximately $400,000 of the increase represents non-recurring expenses,
however. A portion of the non-recurring charges related to the Company's
expansion into a new office space to accommodate the growth in the Company's
business. There were additional non-recurring expenses in the form of
transaction costs and interest expense related to a standby credit facility
that was put in place in December 2007. The credit facility was terminated at
the end of the Quarter.
    Net loss for the Quarter was $1,296,937 or $0.04 loss per share (basic
and diluted) compared to a net loss of $854,792 or $0.03 loss per share (basic
and diluted) in the same quarter in the prior year.
    During the Quarter the Company completed the first tranche of a private
placement equity offering of units at a price of C$0.65 per unit for gross
proceeds of C$6.9 million. The net proceeds from the Offering will be used to
finance fulfillment of existing and new commercial orders, development of
larger capacity voltage regulators and general working capital purposes. Prior
to the end of the Quarter, approximately $1.8 million was used to pay the
principal and accrued interest on a convertible line of credit which the
Company had established in December 2007. The lenders of the line of credit
still retain their conversion rights until the end of 2008. If the all the
lenders elect to exercise their conversion rights, approximately $1.7 million
will be paid to the Company for the purchase of common shares.
    MicroPlanet's financial information for the 3 and 6 month periods ending
June 30, 2008 and 2007 along with the accompanying Management's Discussion and
Analysis for the same period are available on SEDAR (www.sedar.com).

    
    Financial Summary

    -------------------------------------------------------------------------
                             3 months     3 months     6 months     6 months
                               ending       ending       ending       ending
    Income Statement          June 30,     June 30,     June 30,     June 30,
    Unaudited                    2008         2007         2008         2007
    -------------------------------------------------------------------------
    Revenue               $    10,000  $         -  $    10,000  $     2,000
    Gross margin          $    (2,604) $         -  $    (2,604) $       852
    Total expenses        $ 1,300,294  $   867,850  $ 2,594,512  $ 1,546,651
    Net loss              $(1,296,937) $  (854,792) $(2,590,146) $(1,514,508)
    Basic and diluted
     loss per share       $     (0.04) $     (0.03) $     (0.08) $     (0.05)
    Weighted average
     shares outstanding    32,249,097   29,403,963   31,064,609   29,317,968
    -------------------------------------------------------------------------

    -----------------------------------------------
    Balance Sheet             June 30,     Dec. 31,
    Unaudited                    2008         2007
    -----------------------------------------------
    Cash/Deposits         $ 3,416,435  $    47,985
    Current assets        $ 4,806,357  $   594,750
    Total assets          $ 4,961,143  $   731,048
    Current liabilities   $ 1,243,165  $   939,088
    Shareholders' equity
     (deficiency)         $ 3,679,694  $  (208,040)
    -----------------------------------------------
    

    Share grant in lieu of cash compensation

    The Company issued 19,292 common shares to the Bruce Lisanti, the
Company's CEO, for payment of $12,500 in salary in lieu of cash. The share
issuance is pursuant to an agreement to pay a portion of Mr. Lisanti's annual
base salary in common shares of MicroPlanet in lieu of cash. The remaining
shares will be issued in equal installments on a quarterly basis.
    The common shares issued will be subject to a 4-month hold period in
accordance with stock exchange requirements.

    About MicroPlanet Technology Corp.

    MicroPlanet's technology helps to reduce the total amount of energy we
need to produce by significantly increasing the efficiency of the electric
grid. MicroPlanet's products dynamically manage the voltage delivered to a
business or home to optimal levels, which saves energy, lowers electricity
bills and helps reduce greenhouse emissions. The Company's products also
reduce peak period demand and can improve utility services. MicroPlanet
website: www.microplanet.com.

    THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE
ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS
FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO
ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE
FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO,
WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.

    
    THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
    INFORMATION CONTAINED HEREIN.
    

    %SEDAR: 00020555E




For further information:

For further information: MicroPlanet Company Contacts: Bruce Lisanti,
President & CEO, Tel: (206) 625-0851, Fax: (206) 625-0999,
blisanti@microplanet.com; Andy Larson, CFO, Tel: (206) 625-0851, Fax: (206)
625-0999, alarson@microplanet.com; MicroPlanet Investor Relations: Gerry
Wimmer, INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222,
gwimmer@investorfile.com

Organization Profile

MicroPlanet Technology Corp.

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