World Energy Announces 2007 Second Quarter Results



    WORCESTER, MA, Aug. 14 /CNW/ - World Energy Solutions, Inc. (TSX: XWE)
today announced its financial results for the second quarter ended June
30, 2007. All figures are in U.S. dollars unless stated otherwise.

    
    Q2 2007 Highlights
    ------------------
    -   Revenue increased 51% to $1.9 million from $1.3 million in the second
        quarter of 2006
    -   Annualized backlog(*) reached $6.0 million at June 30, 2007
    -   Completed the acquisition of EnergyGateway LLC, a leading online
        broker of natural gas and electricity for commercial and industrial
        (C&I) consumers in the United States
    -   Signed a referral agreement with U.K.-based Utilyx Holdings Limited
    -   Increased channel partner network to 34
    -   Recorded highest volume quarter in company history for Commercial and
        Industrial (C&I) business
    -   Executed electricity procurements for the States of Delaware and New
        Jersey
    -   Added three new wholesale customers, including first auction for a
        retail natural gas supplier
    -   Received a task order from the Commonwealth of Massachusetts
        (for 12-15 years) to assist them in greening their energy portfolio
    -   Continued to build team with new hires in sales, marketing, and
        operations including Rick Adcock as Senior Vice President of
        Environmental Markets
    

    "The second quarter saw us continue to execute the strategy we set forth
during our initial public offering, deploying the capital to support organic
growth and make acquisitions. We recorded strong top-line growth in our base
retail business, while gaining tangible traction in our new markets -
wholesale and green," said Richard Domaleski, President and CEO, World Energy
Solutions. "Among our achievements, in our base business, we had a record
quarter for C&I auction activity, extended our leadership position in the
government space, grew our channel partner network, completed our first
acquisition and extended our reach internationally. We also saw significant
traction in our new markets, running several auctions in the wholesale space
and receiving a task order from the Commonwealth of Massachusetts' Division of
Energy Resources to green their energy portfolio. We continued to build our
sales, marketing and operations teams in all our business lines including our
emerging green business where we hired Rick Adcock as Senior Vice President
and others with significant green experience."
    Revenue for the three months ended June 30, 2007 rose 51% compared with
the first quarter of 2006 to $1.9 million due to organic growth based on
increased auction activity and energy consumption and the addition of the
EnergyGateway business. This growth reflects increases in all of the Company's
base energy procurement markets, including wholesale, government and C&I.
    Total operating expenses for the second quarter of 2007 increased to
$3.3 million from $1.2 million in the same period last year primarily due to
increases in salary, benefit and recruiting costs resulting from the Company's
increased employee base, as well as higher legal and audit costs and the
addition of EnergyGateway. World Energy had 54 employees at June 30, 2007
compared with 19 at June 30, 2006. This change reflects increased staffing
levels in all functional areas, including the Company's first dedicated
full-time employees to pursue the wholesale and green markets. The Company
expects operating expenses to rise moderately for the remainder of 2007 as it
builds out the infrastructure required to support its growth plans.
    Net loss for the second quarter of 2007 was $1.2 million, or $0.02 per
share, compared with a net loss of $179,000 in the second quarter of 2006. The
year-over-year change is due to higher operating expenses, which were
partially offset by increases in revenue, interest income and income tax
benefit.
    Revenue for the six months ended June 30, 2007 rose 38% over the same
period last year to $3.4 million due to organic growth based on increased
auction activity and energy consumption and the addition of EnergyGateway.
This growth reflects increases in all of the Company's base energy procurement
markets, including wholesale, government and C&I.
    Total operating expenses for the six months ended June 30, 2007 increased
to $5.3 million from $2.3 million in the same period last year primarily due
to increases in salary, benefit and recruiting costs resulting from the
Company's increased employee base, higher legal and audit costs and the
addition of the EnergyGateway business.

    (*) Annualized backlog represents the revenue that the Company would derive
within the twelve months following the date on which the backlog is calculated
from contracts between consumer, industrial and government (CIG) energy
consumers and energy suppliers that are in force on such date, assuming such
CIG energy consumers use energy at their historical usage levels.

    Conference Call & Webcast

    World Energy will hold a conference call today, August 14, 2007, at
10:00 a.m. (ET) to discuss its financial results and other corporate
developments. To access the conference call by telephone, dial 416-915-5762 or
1-800-590-1817. The conference call will be archived for replay until Tuesday,
August 21, 2007 at midnight. To access the archived conference call, please
dial 416-640-1917 or 1-877-289-8525 and enter the reservation code 21243125.
    A live audio webcast of the conference call will be available
www.worldenergy.com and www.newswire.ca. Please connect at least 15 minutes
prior to the conference call to ensure adequate time for any software download
that may be required to join the webcast. An archived replay of the webcast
will be available for 360 days.

    About World Energy

    World Energy operates leading online exchanges for energy and
energy-related products. Our proven approach provides market intelligence,
promotes liquidity, and creates price transparency for all market
participants, enabling our customers to transact with confidence and to seek
the best possible price. To date, the company has brokered over 32 billion kwh
of electricity, 500 million kwh of green power and Renewable Energy
Certificates (RECs) and one trillion cubic feet of natural gas. For more
information, please visit www.worldenergy.com.

    This press release contains forward-looking statements that are subject
to risks and uncertainties that could cause actual results to differ from
those indicated in the forward looking statements. Such risks and
uncertainties include, but are not limited to: that our revenue is dependent
on actual future energy purchases pursuant to completed procurements; the
demand for our services is affected by changes in regulated prices or
cyclicality or volatility in competitive market prices for energy; we depend
on a small number of key energy consumers, suppliers and channel partners;
factors outside our control affect transaction volume in the electricity
market; and other factors identified in our Registration Statement on Form S-1
and subsequent reports filed with the Securities and Exchange Commission.



    
                   SUMMARY OF WORLD ENERGY SOLUTIONS, INC.

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                          Three Months Ended           Six Months Ended
                                June 30,                    June 30,
                      --------------------------- ---------------------------
                           2007          2006          2007          2006
                      ------------- ------------- ------------- -------------

    Revenue           $  1,927,192  $  1,274,839  $  3,428,329  $  2,479,770
                      ------------- ------------- ------------- -------------

    Operating loss      (2,061,708)     (240,524)   (2,971,960)     (262,427)

    Interest income
     (expense), net        170,219       (50,762)      374,243      (101,182)
                      ------------- ------------- ------------- -------------
    Loss before income
     taxes              (1,891,489)     (291,286)   (2,597,717)     (363,609)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Net loss          $ (1,177,570)  $  (179,389) $ (1,617,006) $   (219,812)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Net loss available
     to common
     stockholders     $ (1,177,570)  $  (181,189) $ (1,617,006) $   (223,412)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    Loss per share:
      Net loss per
       voting common
       share - basic  $     ( 0.02)  $         -  $      (0.02) $      (0.01)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
      Net loss per
       non-voting
       common share
       - basic        $          -   $         -  $          -  $      (0.01)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
      Net loss per
       share available
       to common
       stockholders
       - diluted      $      (0.02)  $         -  $      (0.02) $      (0.01)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    Weighted average
     shares outstanding
     - basic            78,283,719    40,607,953    77,402,625    40,737,861
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    Weighted average
     shares outstanding
     - diluted          78,283,719    40,607,953    77,402,625    40,737,861
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------



               SUMMARY OF CONDENSED CONSOLIDATED BALANCE SHEET

                                                   June 30, 2007
                                                   --------------

          Assets
          ------
            Current assets                         $  12,410,231
            Property and equipment, net                  399,804
            Goodwill                                   2,528,552
            Other assets                              10,932,698
                                                   --------------
              Total assets                         $  26,271,285
                                                   --------------
                                                   --------------

          Liabilities and stockholders' equity
          ------------------------------------
            Accrued commissions                    $     676,456
            Accounts payable and accrued
             liabilities                               2,216,283
            Other current liabilities                    289,313
                                                   --------------
              Total current liabilities                3,182,052
            Total long-term liabilities                   66,208
            Stockholders' equity                      23,023,025
                                                   --------------
              Total liabilities and
               stockholders' equity                $  26,271,285
                                                   --------------
                                                   --------------
    





For further information:

For further information: Jim Parslow, World Energy Solutions, Inc.,
(508) 459-8100, jparslow@worldenergy.com; Craig Armitage, The Equicom Group,
(416) 815-0700 x278, carmitage@equicomgroup.com

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