WATERLOO, ON, May 31 /CNW/ - ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today provided an update on its progress to date in the second quarter of 2010.
- Line Two of the PV Cell factory in Germany has now started in full
- Shipped 5.3 MW of PV cells from Line One in the first seven weeks of
- Year to Date shipments of 19.2 MW of PV cells and is greater than the
15.7MW in all of 2009
- Line One running at full capacity and producing at 12% higher output
compared to Q1
- Systems Division installations completed, in progress or ordered for
2010 and 2011 total $7.5 million
- Will launch new Systems Division website www.ARISESolar.ca to support
- Reduced German Bank Debt so far in Q2 by $5.6M to $28.0M
- Bank extension to June 15, 2010 to allow ARISE to complete proposed
"We are pleased with our results to date in the second quarter of 2010 and are tracking well against our business plan for this quarter," said Vern Heinrichs, President and CEO of ARISE. "We are pleased to announce that we have started full volume production on Line Two which increases our production capacity to 7MW per month. Demand for our products continues to strengthen and so far this year we have shipped 19.2MW of PV cells as of week 20, more than the 15.7MW shipped in all of last year. We expect production from Line One at our German plant to be approximately 12% higher this quarter compared to the first quarter of 2010 as a result of improved manufacturing productivity. ARISE now has over 15 PV cell customers plus the Company's Systems Division. Having reduced our finished goods inventory by 5.0MW in Q1, we continued to reduce our finished goods inventory in Q2, which is now less than 1% of year to date annualized 2010 shipments, significantly down from 37% of 2009 shipments at year end. This very low finished goods inventory level should eliminate any material inventory valuation risks in Q2. So far this year, strong demand and tight supply in Europe has led to increased average selling prices and rising wafer prices."
Progress continues to be made from a production operations standpoint. ARISE has improved its average multi-crystalline production cell efficiency to 15.8% from 15.5% at the beginning of the year and has shipped product up to 16.6% efficiency. For mono-crystalline the Company has now reached average cell efficiencies of 17.4% and has produced up to 17.6% efficiency in full production. The Company has achieved this while maintaining its target yield and improving throughput.
To date in 2010, ARISE has $7.5M of ARISE systems installations in Ontario that have been completed, or are in progress or have been ordered for completion in 2010 or 2011. To support the systems business, today ARISE will also launch its new sales website www.ARISESolar.ca .
The Company continues to make good progress on improving the quality of its working capital and is currently seeking to complete a Public Offering of Units of up to $10 million as defined in its Preliminary Prospectus Supplement dated May 17. Part of the proceeds from this offering will be used to increase working capital in Germany to support full production on Line Two. So far this quarter, the Company's debt to the Commerzbank in Germany has been reduced by $5.6M to $28.0M as of May 28th, compared to March 31st. This reduction was due to the receipt of a German government receivable, an injection of cash from ARISE Canada and changes in foreign exchange. Commerzbank has also extended the May 31, 2010 date to provide (euro)4.4M of working capital as defined in the ARISE business plan for Line Two to June 15, 2010.
Discussions continue with several potential partners for the Company's Silicon Division and ARISE expects to select one of the options before the end of third quarter 2010.
About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is 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, 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, www.arisetech.com; Investor Relations: Glen Williams, The Equicom Group, (416) 815-0700 x272