CHANTILLY, VA, April 2, 2012 /CNW/ - Catch the Wind Ltd. TSX-V: CTW, providers of Vindicator® Optical Control Systems (OCS), today provided an operational update on its technology licensing agreement and a revised first quarter 2012 revenue guidance.
Following the departure of Philip Rogers as the Chief Executive Officer, President and a director of the Company, the Company undertook, and continues to undertake, a thorough review of the operational, financial and technological performance of the Company. That process included a review of the Company's existing technology and its obligations under the licensing agreement between Optical Air Data Systems, LLC ("OADS") and the Company's wholly-owned subsidiary (the "Licensing Agreement"). This technology review was conducted over an extended period with the assistance of the Company's intellectual property counsel. As a result of that review, the Company concluded that its products and business are no longer subject to any royalty requirements under the Licensing Agreement and therefore did not pay the second quarter guaranteed minimum annual royalty fee to OADS under the Licensing Agreement and does not intend to pay any future royalty fees to OADS under the Licensing Agreement.
The elimination of these royalty fees will contribute to management's efforts to reduce manufacturing costs in order to offer the wind industry an innovative product that increases production and efficiency, while reducing stress on the turbines at a compelling price point.
"The Company is now continually generating intellectual property across a multitude of topics," said Jo Major, Interim President and CEO of Catch the Wind, Inc. "Beyond the patents that CTW currently has, we are now developing a much deeper understanding of the operational control requirements of the wind turbine. Our focus on developing technical and product capability will be relentless, providing owners of wind farms with excellent customer support and unparalleled reliability in our products. Our recently expanded research into the specifics of wind turbine control demonstrates the clear benefits of controlling the turbine based upon the wind in front of the turbine, as opposed to struggling to control the turbine with instruments located in the turbulent vortex behind the spinning rotor of the turbine. The combination of clean measurement of the wind with good control architecture provides our customers compelling improvement in the economics of turbine operation."
The Company also announced that approximately $600,000 of revenue expected to be shipped in Q1 2012 will be shipped in subsequent quarters. This delay in shipment of booked orders is attributable to two factors. The first factor is a slowing of product uptake in the wind resource assessment market. The Company has devoted substantial operational resources to this market, and believes that order uptake for this market segment will return.
The second issue was a design issue discovered by the technical team at CTW. In certain cold-weather operational conditions, the heater used to defrost the window of the device led to impairment of the optical performance of the OCS. The design issue has been corrected and will not impact the performance of the product or future cost reductions. In line with CTW's commitment to customer support and excellent up-time performance, the Company implemented additional internal testing, delaying some Q1 shipments into Q2.
Major continued to comment, "Our rapid resolution of the problem associated with the old window heater design speaks volumes about the team. We detected the problem, discovered the root cause, corrected the issue and then implemented testing procedures to protect our customers. In the end, while we don't like to miss shipment dates, our commitment to quality and our customers comes first."
The Company now expects to ship the equivalent of $600,000 in revenue for the first quarter of 2012.
The OCS is a "next generation" wind turbine control system for utility-scale wind turbines. From its position on top of the nacelle, the OCS simultaneously measures wind speed and direction in the free stream inflow ahead of the turbine and uses this information to optimize wind turbine performance, increasing energy output and reducing damaging stress loads.
About Catch the Wind Ltd.
Catch the Wind Ltd. is a high-growth technology company headquartered in Chantilly, Virginia. The company was founded in 2008 to develop and manufacture the OCS.
Catch the Wind serves the commercial market sector for optical based wind sensor systems, recognized as the "gold standard" in wind measurement. The Company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, visit www.catchthewindinc.com or follow us on Twitter at www.twitter.com/CatchTheWindInc.
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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