Message #20 From:
NewsBot Date: August 5, 2008 07:27:11 PM
MICG Stock: Microfield Group Reports Second Quarter 2008 Results
Generates First Revenue from California
Microfield Group, Inc.(OTCBB:MICG stock) and its subsidiary,
EnergyConnect, announced financial results today for the three and
six-months ended June 28, 2008. The Company announced revenues from
continuing operations of $5,063,000 for the second quarter 2008 compared
to revenues of $3,117,000 for the second quarter 2007.
“The increase between comparative periods is
indicative of the continued acceptance of EnergyConnect’s
price based energy products in key U. S. electric grids,”
Randy Reed, Microfield’s Chief Financial
Officer, noted. “Also, as we realized our
initial revenue in the California market, we look forward to providing
increasing and much needed support to that state in the coming years.”
The Company recorded a net loss of $579,000 or $0.01 per share for the
three months ended June 28, 2008, compared to a net loss of $1,061,000
or $0.01 per share for the three months ended June 30, 2007. Included in
the loss are operating gains from our discontinued subsidiary,
Christenson Electric of $29,000 and $263,000 for the three months ended
June 28, 2008 and June 30, 2007, respectively. Additionally, the Company
recorded a gain on the sale of Christenson of $1,785,000 on the closing
date of April 24, 2008.
The loss from continuing operations for the second quarter of 2008 was
$2,393,000 ($0.03 loss per share) compared to an operating loss of
$1,324,000 ($0.02 loss per share) for the second quarter of 2007. This
increased loss was due to higher SG&A expenses driven by increases in
headcount and system development costs as EnergyConnect continues to
build its revenue base and product offerings, and expands into new
markets.
Revenue and loss from continuing operations for the six months ended
June 28, 2008 were $12,442,000 and $4,297,000 ($0.05 loss per share),
respectively, compared to revenue and net loss for the six months ended
June 30, 2007 of $5,717,000 and $2,664,000 ($0.03 loss per share).
Included in the six month loss totals are non-cash charges for
stock-based compensation expense of $471,000 and $484,000 for those
periods in 2008 and 2007, respectively.
Operating expenses for the three months ended June 28, 2008 were
$3,196,000, compared to $1,948,000 in the three months ended June 30,
2007. Included in these totals are non cash charges for stock-based
compensation of $274,000 and 284,000 for the three months ended June 28,
2008 and June 30, 2007, respectively. The increase in quarter over
quarter expenses was primarily due to salaries, benefits and related
costs associated with new hires and development expenses in this year’s
second quarter that were not in last year’s
second quarter. These expenses were within the range of expectations for
second quarter 2008 expenses.
On a comparative basis between consecutive quarters, operating expenses
were $3,196,000 and $3,102,000 for the three months ended June 28, 2008
and March 29, 2008, respectively. Excluding stock-based compensation
expense of $274,000 and $197,000 for the second and first quarters of
2008, respectively, operating expenses were $2,922,000 and $2,905,000
for the three months ended June 28, 2008 and March 31, 2008,
respectively.
With respect to the balance sheet, quarter ending unrestricted cash was
$1,361,000 compared to $758,000 at December 29, 2007. We also continue
to anticipate that our cash balances are adequate to sustain operations
for the remainder of 2008 and into 2009.
Commenting on the second quarter, Rod Boucher, Microfield’s
Chief Executive Officer, said, “The second
quarter results are in line with our expectations for revenue and
expenses considering our seasonality, increasing activity from existing
participants plus substantial contributions from new participating
electric consumers. Recording twelve million in revenue through the
first two quarters matches our growth expectations, and is 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.
