N@N

ARISE Technologies Reports 2010 Fourth Quarter and Year-End Results

^{Published on 2011-03-29 04:20:27 - Market Wire}
 

WATERLOO, ON, March 29 /CNW/ - ARISE Technologies Corporation (TSX: APV) (Frankfurt: A3T), which is a leader in high-performance, high-quality, cost-effective solar technology, today reported its financial results for the three and twelve months ended December 31, 2010.  Financial results conform to Canadian generally accepted accounting principles ("GAAP") and all currency amounts are in Canadian dollars unless otherwise noted.

2010 Highlights:  

• Total revenue of $73.9 million, compared with $31.7 million in 2009
• Net loss of $17.3 million, compared with a net loss of $41.3 million in 2009
• Shipped 58.3 MW of PV cells, an increase of 271% from 15.7 MW in 2009
• Sales from Systems Division increased 625% to $4.9 million
• Raised $26.4 million in equity

"In 2010, customer demand for our products remained strong, allowing us to dramatically increase our PV cell shipments over the prior year," said Dan Shea, President and CEO of ARISE. "During the year, we ramped up production on Line Two at our German plant, which increased its annual operating capacity to 85MW."

"During the fourth quarter of 2010, we completed a $12.5 million equity financing, to help fund the purchase of equipment for a third production line (Line Three), which is expected to increase our capacity to 145MW per year," continued Mr. Shea. "In order to move forward with this project, we need to meet certain financing requirements and secure an extension to our facilities with our German banker, Commerzbank AG. We are continuing to negotiate with all parties involved in this arrangement and hope to have an agreement soon."

"With respect to our silicon technology, we have concluded discussions previously announced on November 16, 2010, with the European based alternative energy company, and have mutually decided not to move forward together. We are however, continuing to hold active discussions with more than one party to advance the silicon project. In particular, we are pleased to announce that we have entered into a strategic partnership with Core Business Developers who will assist us in the commercialization of our proprietary silicon technology using their deep expertise in large-scale polysilicon project management and production."

Tor Hartmann, CBD's managing partner stated that "We are excited to be a part of this proprietary polysilicon investment and we are pleased to participate in the commercialization of this innovative technology."

2010 Financial Overview
Sales for the year ended December 31, 2010 amounted to $73.9 million, compared with $31.7 in 2009. PV cells accounted for 93.3% of 2010 sales with the $4.9 million balance being generated by the Company's Systems Division.

Gross loss for the year ended December 31, 2010 was $0.03 million, compared with $25.0 million in 2009.

Operating expenses for the year ended December 31 2010 decreased by 11% to $18.2 million, from $20.4 million in 2009.

Other income and expenses for the year ended December 31, 2010 includes a foreign exchange gain of $5.4 million compared with a foreign exchange gain of $5.6 in the same period of 2009. The largest component of the foreign exchange gain resulted from the translation into Canadian Dollars of financial liabilities of ARISE Germany which are denominated in Euros. The foreign exchange gain realized in the year ended December 31, 2010 was due to the strengthening Canadian dollar compared to the Euro. During the year, the Canadian dollar strengthened by 11% compared to the Euro as at December 31, 2009.

Fourth Quarter of 2010
Sales for the fourth quarter ended December 31, 2010 were $19.4 million, compared with $11.3 million in the fourth quarter of 2009. Gross loss for the three months ended December 31, 2010 was $1.1 million compared with $4.7 million in the fourth quarter of 2009. Operating expenses were $3.2 million in the fourth quarter of 2010, down from $5.1 million in the prior year period. ARISE recorded a net loss for the fourth quarter 2010 of $2.0 million (a loss of $0.01 per basic and diluted share), compared with a net loss $7.5 million (a loss of $0.06 per basic and diluted share) in the 2009 quarter.

Liquidity and Capital Resources
As at December 31, 2010, the Company had a working capital liability of $27.5 million consisting of current assets of $29.7 million less current liabilities of $57.2. This compares with negative working capital at December 31, 2009 of $44.0 million consisting of current assets of $24.2 million less current liabilities of $68.2 million. The decrease in working capital deficiency is largely a result of the cash raised from the issuance of shares in the period.

Cash and cash equivalents and restricted cash at December 31, 2010 totaled $7.1 million, an increase of $6.5 million.

Subsequent Event
On March 28, 2011, the Company completed the renegotiation of an amendment to an existing long-term wafer contract with a major silicon wafer supplier. The Company had previously recorded a US $9.1 million impairment charge against the prepayments to the vendor. As a result of this new contract amendment, the Company now believes it can utilize the prepayment.

Conference Call and Webcast 
ARISE will hold a conference call for analysts and investors at 8:30 a.m. (Eastern) on March 29, 2010.  Dan Shea, President and Chief Executive Officer, and Doug McCollam, Chief Financial Officer, will be available to answer questions during the call.

To participate in the call, please dial (647) 427 - 7450 or 1-888 - 231 - 8191 (Canada and the U.S. only) at least five minutes prior to the start of the call. A live audio webcast of the conference call will be available at [ www.newswire.ca ] and [ www.arisetech.com ].

An archived recording of the call will be available at 416-849-0833 or 1-800-642-1687 (Canada and the U.S. only) (Pass code: 43757304) from 11:30 a.m. on March 29, to 11:59 p.m. on April 5, 2011. (ET)

About Core Business Developers (CBD)
Core Business Developers (CBD) is a team of senior management and technical professionals with deep expertise in all aspects of the polysilicon industry and photovoltaic value chain.   CBD's team of highly skilled  professionals have many years of direct experience managing large EPC and chemical process projects from concept to commercial operation. Collectively, the CBD Partners have directly managed the engineering, construction and startup of over $2.5 billion polysilicon production facilities at multiple locations in North America.  In addition, they have direct experience developing new technologies and were responsible for the commercialization of a new fluidized bed process to produce polysilicon.

About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is a leader in high-performance, cost-effective solar technology.  The company operates through three divisions.  The PV Cell Division manufactures PV (photovoltaic) cells at its first manufacturing plant opened in April 2008 in Bischofswerda, Germany.  The division is developing proprietary technology with a target of achieving a step-by-step progression to a high-efficiency level of greater than 20%.  The PV Silicon Division is using a proprietary method to produce silicon at 7N+ high-purity (99.99999% purity) for PV cell applications, based on a simplified chemical vapor deposition process.  The division is focusing on scaling up its process to provide ARISE with control over its supply, costs, and quality. The PV Systems Division has been providing rooftop and ground-mounted PV solutions since 1996. ARISE is planning to expand its systems business in Ontario under the Ontario FIT (Feed-In Tariff) program.

The company's shares are listed on the Toronto Stock Exchange under the symbol APV and on the Frankfurt Open Market Exchange under the symbol A3T.  Additional information is available at [ www.arisetech.com ] and [ www.sedar.com ].

Forward-Looking Statements and Risk Factors
Certain statements in this news release may be considered to be forward-looking.  Such statements are based on management's current expectations, estimations, and assumptions based on experience, trends, and other factors that are subject to the significant risks and uncertainties described in our regulatory filings.  Please refer to these.  Such risks and uncertainties may include, but are not limited to, the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, the requirement for additional capital, risks associated with manufacturing, industry supply levels, competitive pricing pressures and misjudgements in the course of preparing forward-looking statements.

Risk factors relating to ARISE are discussed in the Risk Factors section of ARISE's Annual Information Form and under the headings Liquidity and Capital Resources and Risk and Uncertainties in ARISE's year-end Management's Discussion and Analysis which are or will be available at [ www.sedar.com ].  These factors should be considered carefully, and readers should not place undue reliance on ARISE's forward-looking statements.

ARISE assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements.