NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
BURNABY,BC, Aug. 28, 2012 /CNW/ - Legend Power Systems Inc. ("Legend Power") (TSX-V: LPS) is pleased to provide an update on the progress of our corporate renewal journey.
- We continue to engage and close significant corporate business in Ontario. For the second quarter of calendar year 2012, we received sales commitments totalling $980,000 from several corporations. Some of the units were shipped during the quarter and others are expected be shipped in the third or fourth quarters. We continue to build awareness in Ontario and we believe that several major national accounts that have made commitments to LPS will expand their orders upon successful results.
- We have continued to significantly improve the product's performance while reducing costs. The Harmonizer-AVR is now going to be 100% North America made, which will lower costs, and maintaining a high level of quality and support our USA sales expansion strategy. Planned product enhancements will increase the product's energy savings potential by up to 33%, strengthening our value proposition and notably improving customer ROI.
- Our primary challenge is the lengthy sales cycle from receiving a sales commitment to installation, booking revenue and cash collection. This is a common challenge in the electrical retrofit industry. Installation of the Harmonizer-AVR requires a complete building shutdown for several hours. Many customers have one or two building shutdowns per year as part of a preventative maintenance schedule. In order to minimize disruption, many of our customers prefer to complete the installation during a previously scheduled building shutdown. This can delay installation, booking revenue and collecting payment. In addition, approval from local power utilities and safety authorities must be received prior to installation, which can also cause delay. We are reviewing ways to speed up our sales-to-install cycle.
- We are in discussions with several groups to increase our cash position without a dilutive event. We expect to provide clarity on this matter during September.
We welcome the opportunity to communicate with you and we appreciate the support that you continue to show us. Our Board of Directors is committed and our Team is excited with the possibilities before us.
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) is a leading electrical energy conservation company that manufactures and markets a voltage optimization solution to help commercial and industrial customers to reduce electrical energy consumption and costs. Legend Power's Electrical Harmonizer-AVR helps companies reduce their electricity bills, maintenance costs, and increase the life of electrical equipment, while contributing to a reduction in green house gas emissions.
Forward Looking Information.- This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Legend Power believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Legend Power's management on the date such statements were made. Legend Power expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Legend Power Systems Inc.
For further information:
Randy Buchamer, President and COO
Legend Power Systems Inc.
LEGEND POWER SYSTEMS INC.
8561 Commerce Court
Burnaby, BC V5A 4N5