Catch the Wind Provides Operational Update
April 02 2012 - 6:00AM
PR Newswire (Canada)
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.
Intellectual Property 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." Revenue Guidance 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. 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. CONTACT: Catch the Wind Ltd.Claudia Jaques Vice
President and General Counsel 703-956-6554
cjaques@catchthewindinc.comTMX EquicomPhilip DaleInvestor
Relations416-815-0700 ext. 253pdale@equicomgroup.com
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