Microfield Group Reports Record First Quarter 2008 Results
Comparative Revenues Increase by 123%
Microfield Group, Inc. (OTCBB:MICG) and its subsidiary,
EnergyConnect, announced financial results today for the first quarter
ended March 29, 2008. The Company generated revenues from continuing
operations of $7,379,000 for the first quarter 2008 compared to revenues
of $2,600,000 for the first quarter 2007, an increase of $4,779,000.
The company has revised its accounting for reserves for collection of
revenues. This change results in a first quarter that includes four
months of payments. The revision reflects the company’s
proven ability to more accurately estimate collections. Previously
revenue was estimated monthly, reserved and then recognized upon
receipt. Beginning with the first month of 2008, revenue was recognized
without reserve. This revision resulted in additional revenue of
$1,584,000 being recorded in the first quarter of 2008. On a three month
comparative basis, revenue for the first quarter of 2008 was $5,795,000
compared to $2,600,000 for the same period last year.
“The increase between comparative periods is
indicative of the rapid acceptance of EnergyConnect’s
price based energy products in key U.S. electric grids,”
Randy Reed, Microfield’s Chief Financial
Officer, noted. “Our automated and easy to use
systems provide an attractive income opportunity for large energy
consumers.”
The loss from continuing operations for the first quarter of 2008 was
$1,904,000 compared to an operating loss of $1,339,000 for the three
months ended March 31, 2007. This increased loss was due to higher SG&A
expenses driven by increases in headcount and system development costs
as the EnergyConnect continues to build its revenue base and product
offerings.
The Company recorded a net loss of $2,079,000 or $0.02 per share for the
three months ended March 29, 2008, compared to a net loss of $1,972,000
or $0.02 per share for the three months ended March 31, 2007. Included
in these losses are operating losses from our discontinued subsidiary,
Christenson Electric, of $175,000 and $634,000 for the three months
ended March 29, 2008 and March 31, 2007, respectively.
Operating expenses for the three months ended March 29, 2008 were
$3,102,000, compared to $1,777,000 in the three months ended March 31,
2007. The increase of $1,325,000 between quarters was primarily due to
salaries, benefits and related costs associated with new hires and
development expenses in this year’s first
quarter that were not in last year’s first
quarter. These expenses were within the range of expectations for first
quarter 2008 expenses.
With respect to the balance sheet, quarter ending unrestricted cash was
$118,000 compared to $759,000 at December 29, 2007. This decrease of
$641,000 is the result of normal cash usage.
Commenting on the first quarter results, Rod Boucher, Microfield’s
Chief Executive Officer, said, “The first
quarter results reflect increased activity from existing participants
plus substantial contributions from new participating electric
consumers. These results match our growth expectations and affirm our
business plan, and are a credit to the dedication of our employees.”
About Microfield Group, Inc.
Microfield Group, through its wholly owned subsidiary EnergyConnect,
Inc., provides industry-leading Demand Response technologies and
services that enable a smarter, more sustainable power grid while
creating additional income for participating companies. EnergyConnect
transforms energy consumers into active participants in delivering the
cleanest, most efficient and lowest cost supply of electric energy
available. The EnergyConnect web-based automated platform enables
consumers of energy to participate in unprecedented profit opportunities
in the wholesale market for electricity. For more information about this
next-generation technology, visit: www.energyconnectinc.com.
Microfield is headquartered in Portland, Oregon, and its common stock is
traded on the OTC Bulletin Board under the symbol “MICG.”
Additional information about Microfield is also available at www.microfield.com.
Forward-Looking Statements
This press release includes statements that may constitute “forward-looking”
statements. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties
that could cause or contribute to such differences that include, but are
not limited to, competitive factors, the success of new products in the
marketplace, dependence upon third-party vendors, and the ability to
obtain financing. By making these forward-looking statements, the
Company undertakes no obligation to update these statements for
revisions or changes after the date of this release.
