updated 11/23/2010 7:16:46 AM ET 2010-11-23T12:16:46

SOUTH SAN FRANCISCO, Calif. and SHANGHAI, China, Nov. 23, 2010 (GLOBE NEWSWIRE) -- Worldwide Energy and Manufacturing USA, Inc. (OTCBB:WEMU) ("Worldwide" or the "Company"), a rapidly growing international supplier of photovoltaic (PV) solar modules, today announced its financial results for the third fiscal quarter ended September 30, 2010. Summary financial data is provided below:

Third Quarter 2010 Financial Highlights

  • Revenues for the third quarter of fiscal year 2010 increased by 139.3% year-over-year to $44.6 million, up from $18.6 million in the third quarter of 2009.
     
  • Solar division revenue increased by 157.6% to $40.0 million, up from $15.5 million in the same period a year ago.
     
  • Net income attributable to Worldwide for the third quarter decreased 40.5% year-over-year to $1.2 million, compared with $2.0 million for the third quarter of 2009.
     
  • Gross profit for the third quarter increased 48.7% to $4.0 million, up from $2.7 million a year ago; Gross margin was 8.9%, compared to 14.4% in the same period last year.
     
  • Operating income and operating margin for the third quarter were $0.4 million and 0.9%, respectively, compared to $1.3 million and 7.2%, respectively, in the third quarter of 2009.
     
  • Earnings per diluted share were $0.21 for the quarter, compared with diluted EPS of $0.55 achieved in the same period a year ago.

Financial Highlights for the Nine Months Ended September 30, 2010

  • Revenues for the nine months ended September 30, 2010 increased by 192.6% year-over-year to $114.7 million, up from $39.2 million in the nine months ended September 30, 2009. 
     
  • Solar division revenue increased to $101.6 million from $29.9 million, an increase of 239.5% or approximately $71.7 million compared to the same period a year ago.
     
  •  Net income for the nine months ended September 30, 2010 increased 178.4% year-over-year to $4.4 million, compared with $1.6 million in the nine months ended September 30, 2009. 
     
  • Gross profit for the nine months ended September 30, 2010, increased 76.5% to $10.6 million from $6.0 million for the nine months ended September 30, 2009; Gross margin for the period was 9.3% compared to 15.4% for the nine months ended September 30, 2009.       
     
  • Operating income and operating margin for the nine months ended September 30, 2010 were $2.6 million and 2.3%, respectively, compared to $2.4 million and 6.0%, respectively, in the nine months ended September 30, 2009. 
     
  • Earnings per diluted share were $0.81 for the nine months ended September 30, 2010, compared with diluted EPS of $0.44 achieved in the same period a year ago.

Jimmy Wang, CEO of Worldwide, stated, "We achieved triple-digit sales growth for the sixth consecutive quarter, driven by strong demand for our PV solar modules. Although market dynamics negatively impacted our margins during the quarter, demand for our modules continued to increase significantly, and our solar backlog currently stands at a record $106 million. By working toward a competitive environment for our supplier base as well as leveraging economies of scale to negotiate with suppliers, we expect to see a rebound in profitability in the near future."

Mr. Wang continued, "Looking ahead, we plan to continue growing our solar business through our recently opened manufacturing and research facility in Nantong, China. We believe that the solar energy industry offers us our greatest growth and profit potential, and we anticipate improved performance for the rest of 2010 and into 2011."

Third Quarter 2010 Results of Operations

Revenues

Revenues for the three months ended September 30, 2010 were $44.6 million as compared to $18.6 million for the three months ended September 30, 2009. The increase of $26.0 million, or 139.3%, was primarily due to increased demand for the Company's AmeriSolar brand of PV solar modules, particularly in Europe.

Gross Profit

Gross profit for the three months ended September 30, 2010 was $4.0 million as compared to $2.7 million for the three months ended September 30, 2009. The increase of $1.3 million, or 48.7%, was primarily due to an increase in the number of PV solar modules shipped. Costs of sales for the three-month period were $40.6 million as compared to $15.9 million for the same period a year ago. The Company's gross margin was 8.9% and 14.4% for the three months ended September 30, 2010 and 2009, respectively. The decrease in gross margin was primarily due to the market-driven decline in sales price per unit for solar modules, which has outpaced the raw material price reductions that the Company has been able to negotiate with its suppliers.

Income from Operations

Operating income for the three months ended September 30, 2010 amounted to $0.4 million as compared to $1.3 million for the three months ended September 30, 2009. The decrease of $0.9 million was primarily due to increased costs associated with increased sales. Operating expenses for the three-month period totaled $3.6 million as compared to $1.3 million for the same period a year ago. The increase in operating expenses reflected an increase in sales expenses for sales associate salaries and commissions on increased sales volume, as well as the expenses associated with adding administrative infrastructure for the Company's current and anticipated sales growth.

Net Income

Net income attributable to Worldwide for the three months ended September 30, 2010 was $1.2 million as compared to $2.0 million for the three months ended September 30, 2009, due to the reasons set forth above. Earnings per diluted share were $0.21 for the quarter, compared with diluted EPS of $0.55 for the same period a year ago.

Results of Operations for the Nine Months Ended September 30, 2010

Revenues

Revenues for the nine months ended September 30, 2010 were $114.7 million as compared to $39.2 million for the nine months ended September 30, 2009. The increase of $75.5 million, or 192.6%, was primarily due to the continued market penetration of the Company's AmeriSolar brand of PV solar modules, particularly in Europe.

Gross Profit

Gross profit for the nine months ended September 30, 2010 was $10.6 million as compared to $6.0 million for the nine months ended September 30, 2009. The increase of $4.6 million, or 76.5%, was primarily due to an increase in the number of PV solar modules shipped as well as lower material costs associated with the crystalline silicon material used for module production. Costs of sales were $104.1 million for the nine-month period, as compared to $33.2 million in the same period a year ago. The Company's gross margin was 9.3% and 15.4%, respectively, for the nine months ended September 30, 2010 and 2009. The decrease was primarily driven by a decline in sales price per unit, which is dictated by the market and has outpaced the raw material price reductions that the Company has been able to negotiate with its suppliers.

Income from Operations

Operating income for the nine months ended September 30, 2010 amounted to $2.6 million as compared to $2.4 million for the nine months ended September 30, 2009. Operating expenses for the nine months ended September 30, 2010 totaled $8.0 million, up 119.5% from $3.6 million in the same period a year ago. The increase in operating expenses was primarily due to increased administrative costs associated with the increase in sales.

Net Income

Net income attributable to Worldwide for the nine months ended September 30, 2010 was $4.4 million as compared to $1.6 million for the nine months ended September 30, 2009. Earnings per diluted share were $0.81 for the quarter, compared with diluted EPS of $0.44 for the same period in 2009.  

Liquidity and Capital Resources

As of September 30, 2010, Worldwide's current assets were $45.6 million and current liabilities were $33.4 million. Cash and cash equivalents totaled $8.5 million at September 30, 2010. The Company's stockholders' equity at September 30, 2010 was $19.3 million. For the nine months ended September 30, 2010, the Company used $6.3 million in cash for operating activities, as compared to $0.3 million provided by operating activities for the same period in 2009. The Company used $0.1 million in cash for investing activities during the nine months ended September 30, 2010, as compared to $2.2 million for the nine months ended September 30, 2009. For the nine months ended September 30, 2010, the Company generated $5.5 million in cash from financing activities, as compared to $1.9 million for the nine months ended September 30, 2009.

Conference Call and Webcast

Management will host a conference call to discuss these financial results today at 10:00 a.m. Eastern time (7:00 a.m. Pacific).

To participate in the call please dial (877) 941-1427, or (480) 629-9664 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company's website at http://www.wwmusa.com , or alternately at http://ViaVid.net .

A replay of the call will be available for two weeks from 1:00 p.m. EST on November 23, 2010 until 11:59 p.m. EST on December 7, 2010. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pass code for the replay is 4387621. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com for one year.

About Worldwide Energy and Manufacturing USA

Worldwide Energy and Manufacturing USA, Inc. ( http://www.wwmusa.com ), headquartered in South San Francisco, California, is a 17-year-old engineering-oriented firm specializing in photovoltaic (PV) module, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the solar energy, wireless telecommunications, aerospace, automobile and medical equipment industries. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.

Forward-looking statements

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Non-cash investing and financing activities:

During the period ended September 30, 2010, the Company accounted for $6,095,998 of warrants issued in its 2010 financing as a warrant derivative liability.

During the period ended September 30, 2010, the Company reclassified $1,444,127 from warrant derivative liability to equity related to the warrants issued in its 2008 financing.

This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission, which includes the accompanying notes. The above historical information is from the Company's 2010 Third Quarter Form 10-Q, filed November 22, 2010, the Company's 2009 Third Quarter Form 10-Q/A, filed April 16, 2010, and the Company's 2009 Form 10-K, filed April 15, 2010

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