MANASSAS, VA, May 2 /CNW/ -- MANASSAS, VA, May 2 /CNW/ - Catch the
Wind Ltd. (TSX-V: CTW), providers of feed-forward, intelligent
turbine performance improvement systems that deliver increased
energy output and reduced equipment stress loads for utility scale
wind turbine generators, today reported its financial results for
the three- and 12-month periods ended December 31, 2010. All
figures are in U.S. dollars unless otherwise stated. "In 2010, we
experienced considerable achievement and progress," said Phil
Rogers, President and CEO of Catch the Wind. "Against a backdrop of
market uncertainty, we accelerated our path towards market adoption
by signing a number of sales agreements with various members of the
wind industry. Among our customer wins were a global turbine
manufacturer, two large wind farm owners and operators, and AXYS
Technologies, a leading provider of remote environmental data
acquisition, processing, and telemetry systems. "As a result of our
access to world-class engineering talent, we also enhanced the
capabilities of our Vindicator unit while reducing our production
cost through new a product configuration." Mr. Rogers added, "We
have sustained this forward momentum over the past several months
through a growing sales pipeline and confirmation from customer
trial program results that the Vindicator's look-ahead measurement
and turbine control capabilities can increase energy output in
excess of 20 percent through better turbine alignment with the
wind. Our progress to date effectively positions us for a
breakout year in 2011." Selected 2010 Financial and Operational
Highlights -- Signed an exclusive multi-million dollar distribution
agreement with AXYS Technologies with a minimum purchase commitment
of 47 Vindicator(®) laser wind sensor (LWS) units. AXYS will bundle
the Vindicator(®) LWS units with its floating platforms and sell
the combined products for maritime wind resource assessment
applications. -- Signed a sales agreement with BP Wind Energy, a
leading owner and operator of wind power facilities with over 1,200
MW in commercial operation in the United States. -- Signed a sales
agreement with enXco, a leading company that develops, constructs,
operates and manages renewable energy projects throughout North
America. -- Signed an agreement with GL Renewables Certification,
an independent certification body for renewable energies, to
certify safety and performance of the Company's Vindicator(®) LWS.
The receipt of the certification is expected to accelerate the
Company's sales cycle. -- Re-domesticated the Company to the Cayman
Islands. The re-domestication was initiated for the purpose of
achieving greater flexibility in potential future financings, and
was not completed for any tax reason. -- Removed the ".S"
designation from the Company's ticker symbol on the TSX Venture
Exchange, resulting in the new symbol "CTW". -- Entered into a
sales agreement with one of the world's leading manufacturers of
wind turbines for the purchase of a unit of the Company's
Vindicator® LWS. -- Launched Racer's Edge® LWS, the world's first
hand-held device that provides accurate wind speed and direction
measurement data for use in sailing, boating and other sporting
events where knowledge of wind conditions is a contributing factor
to performance. -- Named an Official Supplier of BMW ORACLE Racing,
the winner of the 33rd America's Cup Match, held February 2010 in
Valencia, Spain. -- Appointed Robin Roge, CPA, as acting Chief
Financial Officer of the Company. Ms. Roge has more than 25 years
of accounting and financial reporting experience, working with a
number of public and private companies. Highlights Subsequent to
Year-end -- Announced that the Company's exclusive licensing
partner for maritime applications, AXYS Technologies, sold two
units of the WindSentinel™ buoy, a custom marine floating platform
bundled with a Vindicator® LWS unit. -- Presented a summary report
of data collected to date from its Vindicator® LWS field trials at
the European Wind Energy Association 2011 Annual Event in Brussels,
Belgium. Specific energy output data collected over a span of 11
months indicated that the Vindicator® LWS consistently generated
14% increased energy output as compared to periods when the legacy
wind direction inputs were utilized, with optimization experiments
showing increased energy output in excess of 20%. -- Announced the
reduction of the production costs for the Vindicator® LWS by
approximately 50% and the significant improvement in the ease of
its installation and serviceability. Financial Performance Catch
the Wind recognized revenue of $500,000 for the quarter and
$507,500 for the 12-month period ended December 31, 2010, both
record results for each respective period. Catch the Wind generates
revenue from the sale and rental of its laser wind sensing
technologies. In 2009, the Company operated as an early stage
development company and netted its cash receipts from product
sales, which totaled approximately $283,000 for the year, against
project development costs. Catch the Wind continued to operate as
an early stage company focused on the development of its wind
sensor products through the first six months of 2010. Operating
expenses for Q4 2010 were $5.6 million, up from $4.2 million for
the corresponding period of last year. The increase in
expenses is chiefly due to the growth of the Company and the
accounting treatment of certain items that took effect when the
Company became a commercial enterprise in July 2010.
Consistent with generally accepted accounting principles, these
items, which included research and development expenses of $1.1
million and amortization of intangible assets of
approximately $335,000, were expensed. On a 12-month basis,
operating expenses totaled $17.4 million for 2010 and $11.6 million
for 2009. The increase in expenses is again due, in part, to the
accounting treatment of certain items, including research and
development expenses of $2.1 million and amortization of intangible
assets of approximately $725,000. The growth in operating
expenses was also attributable to cost of sales of $1.1
million. The increase in operating expenses was partially
offset by a reduction in inventory write-down charges of $2.2
million. Operating expenses include cost of sales and customer
support, salaries and benefits, general and administrative
expenses, professional fees as well as professional engineering
fees associated with the development of the Company's Vindicator(®)
LWS. Consistent with its capital optimization plan, the Company
amended its engineering services agreement with Optical Air Data
Systems, LLC to provide for a fixed price component. The Company
has also recently announced that it has reduced the production
costs for the Vindicator(®) LWS by as much as 50%. The cost
reduction results from a new production configuration achieved as a
result of the knowledge gained from customer field trials conducted
over the past 18 months as well as the transfer back to the
Vindicator® LWS of the miniaturization developed previously for
Company's hand-held wind sensing device, Racer's Edge(® )LWS.
The new product configuration also significantly improves the ease
of installation and serviceability of the Vindicator® LWS units.
Catch the Wind recorded a net loss for Q4 2010 of $5.1 million or
$0.08 per share. These compare to a net loss of $4.2 million,
or $0.08 per share, for the same period of 2009. Catch the Wind
recorded a net loss for 2010 of $16.9 million or $0.29 per share,
compared to a net loss $11.6 million or $0.24 per share for 2009.
At December 31, 2010, Catch the Wind had working capital of $6.9
million, including cash and cash equivalents of $6.7 million,
compared to $10.1 million and $10.6 million, respectively, for
2009. Catch the Wind has filed its financial statements for the
three months and year ended December 31, 2010 and related
Management's Discussion and Analysis (MD&A) with securities
regulatory authorities. Catch the Wind's financial
statements, MD&A and related documents are available via SEDAR
as well as through the Company's website, www.catchthewindinc.com.
Conference Call Catch the Wind will host a conference call to
discuss its 2010 year-end financial results on Tuesday, May 3, 2011
at 10:00 a.m. EST. To access the conference call by telephone, dial
647-427-7450 or 1-888-231-8191. Please connect approximately
15 minutes prior to the beginning of the call to ensure
participation. A question and answer session for analysts and
institutional investors will follow management's presentation. A
live audio webcast of the conference call will be available at
www.catchthewindinc.com . 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. The webcast will
be archived at the above web site for 30 days. A taped rebroadcast
will be available to listeners until 12 a.m. ET on Tuesday, May 10,
2011. To access the rebroadcast, please dial 416-849-0833 or
1-800-642-1687 and enter passcode 58421924, followed by the number
sign. About Catch the Wind Ltd. Catch the Wind Ltd. is a
high-growth technology company headquartered in Manassas, Virginia.
The company was founded in 2008 to develop and manufacture the
Vindicator® laser wind sensor. Catch the Wind serves the commercial
market sector for laser 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. Forward-Looking Information 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. 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. Catch
the Wind Ltd. Consolidated Balance Sheets As at December 31, 2010
2009 (Expressed in United States $ $ dollars) Assets Current
assets: Cash and cash 10,616,065 equivalents 6,746,467 Accounts
119,627 receivable 202,157 Inventory 1,667,997 2,605,224 Prepaid
expenses 107,719 and other assets 228,262 12,511,408 9,782,110
Capital assets 6,486,358 5,659,422 Other intangible 5,889,286
assets 5,971,545 Deposits 77,045 81,109 Total assets 24,964,097
21,494,186 Liabilities and Shareholders' Equity Current
liabilities: Accounts payable and accrued 2,074,698 1,339,905
liabilities Due to related 355,685 party 74,388 Obligations under
capital leases - 194,582 179,633 current portion Long-term debt -
166,213 current portion 178,530 Deferred revenue and customer
333,500 360,000 deposits 2,401,436 2,855,698 Obligations under
218,026 capital leases 41,987 Long-term debt 4,394,057 4,215,527
Total liabilities 7,013,519 7,113,212 Non-controlling 182,913
interest 86,983 Shareholders' Equity Capital stock 5,488 8,049
Contributed 31,572,347 surplus 42,842,699 Warrants 2,131,711 -
Deficit (13,810,170) (30,688,468) Total shareholders' 17,767,665
equity 14,293,991 Total liabilities and shareholders' 21,494,186
24,964,097 equity Catch the Wind Ltd. Consolidated
Statements of Loss, Comprehensive Loss and Deficit For the years
ended December 31, 2010 2009 (Expressed in United States dollars) $
$ Revenue 507,500 - Expenses: Cost of sales 1,133,127 - Salaries
and 2,912,748 benefits 3,302,996 General and 1,356,760
administrative 2,479,542 Inventory writedown - beta 1,836,333
4,016,127 units Capital assets writedown- 149,000 - Racer's Edge
Amortization of other intangible 725,400 - assets Amortization of
322,434 capital assets 859,924 Sales and 254,648 marketing 417,401
Consulting fees 389,687 723,921 Professional fees 574,666 1,509,761
Professional engineering 2,273,902 1,828,059 fees Research and
111,394 development 2,084,076 Interest expense, 91,719 long-term
debt 322,062 Interest expense, 50,112 leases 52,173 Interest income
(95,217) (17,832) Other income, net (18,550) - Foreign exchange
(109,459) gain (82,611) 17,750,625 11,703,678 Loss before
non-controlling interest (17,243,125) (11,703,678) Non-controlling
(124,904) interest (364,827) Net loss and comprehensive loss
(16,878,298) (11,578,774) Deficit - Beginning of year (13,810,170)
(2,231,396) Deficit - End of year (30,688,468) (13,810,170) Net
loss per common share - basic and diluted (0.29) (0.24) Weighted
average number of common shares outstanding 48,441,552 58,798,384
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table valign="top" border="0" tr td valign="top" align="left" Catch
the Wind Ltd. /td td The Equicom
Group /td /tr tr td valign="top" align="left" Claudia
Jaques /td td Joe Racanelli /td /tr
tr td valign="top" align="left" Vice President and General Counsel
/td td Investor Relations /td /tr tr td valign="top" align="left"
703-393-0754 /td td
416-815-0700 ext. 243 /td /tr tr td valign="top" align="left" a
href="mailto:cjaques@catchthewindinc.com"cjaques@catchthewindinc.com/a
/td td a
href="mailto:jracanelli@equicomgroup.com"jracanelli@equicomgroup.com/a
/td /tr /table
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