Message #31 From:
NewsBot Date: September 2, 2008 09:09:36 AM
TMEN Stock: ThermoEnergy Corp Reports Second Quarter 2008 Financial Results and Business Highlights
- Strengthens CASTion Pipeline
- Expands Infrastructure for Future Contracts
- Additional Investment by Affiliate
LITTLE ROCK, Ark., Aug. 20 /PRNewswire-FirstCall/ -- ThermoEnergy
Corporation (OTC Bulletin Board: TMEN) today announces the Company's second
quarter 2008 financial results and provides a business update to shareholders.
Key Business Highlights and Corporate Developments
-- CASTion received a follow on order from long time client, General Metal
Finishing for CASTion's ZLD and CAST system.
-- CASTion continues to expand the current pipeline for its industrial
business, which now stands at approximately $8 million. CASTion defines their
pipeline as order with a probability greater than 50% to be started in the
next 12 months.
-- CASTion expects to close on approximately $1-3 million of the current
pipeline in the second half of 2008.
-- ThermoEnergy is in contract discussions with two large internationally
known Architect and Engineering Companies to provide the necessary
construction and engineering services for the New York City 26th Ward ARP
Wastewater project.
-- Discussions continue with Babcock Power, Inc. to form a symbiotic
relationship utilizing the Company's proprietary TIPS process. The Memorandum
of Understanding has been extended and the Company expects to enter into a
joint venture agreement during the third quarter of 2008
-- Large Shareholder makes an additional investment as a bridge loan until
the Quercus Trust $7 million commitment closes.
'The first half of 2008 has been a milestone building period for
ThermoEnergy and our subsidiaries. We have continued to make strides in our
contract negotiations with New York City and believe we are within 60-90 days
of announcing the finalization of the contract for the 26th Ward ARP project.
Additionally, we continue to move closer to a finalized agreement structure
with Babcock Power, Inc. relating to our TIPS process. Finally, CASTion
continues to excel at winning new business opportunities and should move
towards break even on an annualized basis in the second half of 2008 as our
backlog continues to grow to more than $8 million of which we expect to close
$1-3 million by year end 2008,' stated Dennis Cossey, CEO of ThermoEnergy
Corporation.
Second Quarter and Six Month 2008 Financial Results
ThermoEnergy reported $776,000 in operating revenue for the second quarter
of 2008 compared to $108,000 in the second quarter of 2007. The increase was
the results of increasing demand for products in the CASTion water division.
Gross profit for the second quarter was $54,000 or 6% gross margins as
compared $72,000 or 66% in the prior year's comparable period. The margin
compression is related to expenses related to the staffing and to improving
customer relationships at CASTion. Management expects margins to improve in
the second half of 2008.
Operating expenses for the second quarter increased to $3.6 million from
$1.3 million in the second quarter of 2007. The majority of the increase in
operating expenses relates to the expansion of the CASTion sales force,
infrastructure expansion to support future large contracts and non-cash option
and warrant expenses. Overall, the Company recognized a net loss of $(3.77)
million or $(0.08) per share in the second quarter of 2008 as compared to a
net loss of $(1.24) million or $(0.05) per share in the prior year period.
For the first six months of 2008, ThermoEnergy posted revenues of $1.18
million compared to $182,000 in the year ago period. Loss from operations
increased to $(5.27) million as compared to $(2.03) million for the first six
months of 2007. Through the first six months of 2008, ThermoEnergy has
sustained a net loss of $(5.67) million as compared to $(2.02) million through
the same period in 2007.
Founded in 1988, ThermoEnergy is a diversified technologies company
engaged in the worldwide commercialization of patented and/or proprietary
municipal and industrial wastewater treatment and power generation
technologies. The economic and environmental matrix of the Company's
technologies represents a significant advancement in these key infrastructure
industries. The Company currently has offices in Little Rock, AR, Worcester,
MA, Hudson, MA, and New York, NY. Additional information on the Company and
its technologies can be found on its website at www.thermoenergy.com.
ABOUT CASTion: We are a fast growing developer and manufacturer of
innovative wastewater treatment and recovery systems for industrial and
municipal clients. Our systems are unique because they meet environmental
regulations and provide a rapid rate of return on investment by recovering and
reusing expensive feedstocks, reducing contaminated wastewater discharge and
reusing wastewater in process operations. Our proprietary products CAST and
RCAST are combined with off-the shelf technologies to provide systems that are
inexpensive, easy to operate and reliable. Our wastewater treatment systems
have application in aerospace, food processing, metal finishing, refineries,
manufacturing and municipal wastewater. With recovery of feedstocks, avoidance
of wastewater and contaminate discharge fees and the reuse of wastewater in
your process our systems can deliver cost effective solutions to environmental
problems. From our 20,000 square foot manufacturing facility in Worcester,
Massachusetts we have the ability to assemble and ship our systems worldwide.
Additional information on the Company and its technologies can be found on its
website at www.castion.com.
