XZERES Corp., designer, developer and producer of distributed generation wind power systems for the small wind market (2.5kW-100kW) and power management and efficiency devices for the commercial and light industrial market, just announced its financial results for its fiscal first quarter ended May 31, 2011.
Revenue for the quarter totaled $1,017,217, a 57% sequential increase as compared to the fiscal fourth quarter ending February 28, 2011. Revenue by channel for the first quarter for its wind power systems business grew to 47.2% direct and 52.8% indirect as compared to 32.8% direct and 67.2% indirect for the previous fourth quarter. In future quarters, the company anticipates growing sales of its recently acquired line of power management and power efficiency products.
“During the first quarter, we saw continued growth as we began initial deliveries of our new 442SR next generation 10-kilowatt turbine small wind power systems,” said Frank P. Greco, CEO and President. “We also achieved significant sales model progress in terms of our revenue by channel mix, with an increasing percentage of our sales being direct. This direct sales success is the result of our efforts that began last July, when we decided to initiate a disruptive sales model approach to the conventional, purely dealer-based, distribution model that has been prevalent in the wind turbine business and instead focus more of our efforts upon direct, self-reliant, internally generated business, thereby gaining several distinct advantages.”
He continued, “While we welcome and appreciate dealer business, and our dealer business is growing meaningfully, we will continue to aggressively implement this direct sales model domestically and additionally begin to apply it internationally – initially in the United Kingdom – as we ramp our international sales. We will also apply this direct sales model domestically to our new line of power management and power efficiency solutions,
Business highlights of the quarter include initiating a pilot project deploying its 442SR next generation 10-kilowatt turbine small wind power system for a potentially large, micro-grid, island electrification opportunity in Vietnam; testing its proprietary battery charging controller and solution for remote electrification; shipping its first container (9 units) of 442SR small wind power systems to the United Kingdom and completing initial product sales of recently acquired line of power management and power efficiency devices.
According to the press release, XZERES expects continued strong growth in its distributed energy, small wind power systems business and potentially even faster growth for its power management and power efficiency business segment. The company also said it anticipates that by fiscal year end (February 28, 2012) its power management/power efficiency business will become a meaningful, if not significant, part of overall business on a going-forward, revenue run-rate basis; potentially becoming its fastest growing business segment.
Gross margins are projected to rise substantially from current levels over the next two fiscal years as the company develops, acquires and deploys new products, services and business models. Most notable, however, XZERES maintains its goal for FY 2012 ending February 28, 2012, to significantly more than quadruple revenues, as compared to the recently completed fiscal year 2011.
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