Knobias Clip Report (08-18-2008) WWAT
Submitted By Knobias ClipReport
WWAT: Falls to 52-Week Low on Q2 Earnings Report; CEO Comments from Conf Call
By Fain Hughes, fhughes@knobias.com
Shares of WorldWater & Solar Technologies Corp. (WWAT) fell to a 52-week low on Monday after the Company reported results for the second quarter ended June 30, 2008. Revenue for the second quarter was $7.6 million, compared with $2.2 million reported in the second quarter of 2007. The increase in revenue was driven by the Company’s project at Denver International Airport and the recently-dedicated installation at Fresno International Airport. The Company’s net loss attributable to common shareholders for the second quarter of 2008 was $24 million, or $(0.12) per share, compared with a loss of $2.8 million, or $(0.02) per share, in the second quarter of 2007.
Frank Smith, CEO of WorldWater & Solar Technologies, commented in a conference call today, “The gross loss was primarily the result of additional loss provisions that were recorded in the Denver and Fresno airport projects, along with the loss provision of $2.2 million related to the project for the Valley Center Municipal Water District in california. As the Denver and Fresno projects neared completion, it became apparent that the loss provisions recorded in Q1 were not adequate. These losses, while not large, were caused by further cosst overruns and underscore the obvious need for us to improve our internal project management and cost estimating capabilities.”
He concluded, “I appreciate the patience and passion of our investors. I realize that the solar industry can be extremely volatile, and it is not easy to judge where each company stands. We continue to focus on the fundamentals of the business and growing within the robust North American market. We remain optimistic about the outlook for 2009. We have the funding and technology necessary to pursue numerous attractive opportunities as we seek to differentiate our company in the industry. Market demand for solar energy will not diminish anytime soon, and we anticipate that a tax credit extension will remove a degree of uncertainty currently hanging over the industry.”
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