Worldwide Energy (PINK:WEMU)

SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA--(Marketwire - December 29, 2010) - Worldwide Energy & Manufacturing USA, Inc. announced today that it expects fiscal year 2010 revenues to come in at the high end of its guidance based on the year-end sales strength that the Company is experiencing.

On December 7, 2010, Worldwide provided revenue guidance of between $160 million to $165 million for fiscal year 2010, a record for the Company. The update to the Company's revenue estimate is based on the strength it sees from contracts and commitments, primarily from its Solar Division. The Company's 'AmeriSolar' brand of photovoltaic solar modules continues to capture increasing market share globally and is building momentum and gaining recognition.

"Worldwide Energy & Manufacturing's revenue continues to grow rapidly as reflected in the revision of our 2010 revenue estimates to be the upper end of our previously stated range," said Jimmy Wang, CEO of Worldwide. "We are benefitting from strong international demand for PV Solar systems, particularly from Europe, which is a significant market for our AmeriSolar brand. Going forward, we expect to see strong demand for our products based on an overall increase in global demand for the adoption of clean, reliable solar energy solutions

Worldwide estimates that its 2010 revenues will increase by approximately 160% to between $160 million to $165 million. The revenue estimate is based on contracts and commitments primarily from the Company's Solar Division, which continues to capture increasing market share globally with its 'AmeriSolar' brand of photovoltaic solar modules. In addition, the Company anticipates that its margins will continue to improve as it ramps up production at its new, wholly-owned state-of-the-art manufacturing and research facility in Nantong, China, which has an initial manufacturing capacity of 100 megawatts and a highly competitive cost structure. 

"We expect to achieve significant revenue growth for the fiscal year ending 2010 and going forward given the strong growth we see in the global solar market and increasing demand for our AmeriSolar PV modules," said Jimmy Wang, CEO of Worldwide. "Europe continues to be a strong market for our products, particularly for us in Italy and the U.K, and we anticipate that Asia and the U.S. will become growing markets in the next three to four years, where we are already well positioned. Solar is a very fast growing industry within the clean tech sector and we are confident that we are taking the right steps to aggressively grow our customer base as spending on renewable energy continues to rise."

Third Quarter 2010 Financial Highlights

• Revenues for the third quarter of fiscal year 2010 increased by 139.3% year-over-year to $44.6 million, up from $18.6 million in the third quarter of 2009.
   
• Solar division revenue increased by 157.6% to $40.0 million, up from $15.5 million in the same period a year ago.
   
• Net income attributable to Worldwide for the third quarter decreased 40.5% year-over-year to $1.2 million, compared with $2.0 million for the third quarter of 2009.
   
• Gross profit for the third quarter increased 48.7% to $4.0 million, up from $2.7 million a year ago; Gross margin was 8.9%, compared to 14.4% in the same period last year.
   
• Operating income and operating margin for the third quarter were $0.4 million and 0.9%, respectively, compared to $1.3 million and 7.2%, respectively, in the third quarter of 2009.
   
• Earnings per diluted share were $0.21 for the quarter, compared with diluted EPS of $0.55 achieved in the same period a year ago.

Jimmy Wang, CEO of Worldwide, stated, "We achieved triple-digit sales growth for the sixth consecutive quarter, driven by strong demand for our PV solar modules. Although market dynamics negatively impacted our margins during the quarter, demand for our modules continued to increase significantly, and our solar backlog currently stands at a record $106 million. By working toward a competitive environment for our supplier base as well as leveraging economies of scale to negotiate with suppliers, we expect to see a rebound in profitability in the near future."

Mr. Wang continued, "Looking ahead, we plan to continue growing our solar business through our recently opened manufacturing and research facility in Nantong, China. We believe that the solar energy industry offers us our greatest growth and profit potential, and we anticipate improved performance for the rest of 2010 and into 2011."

Yesterday, WEMU reported 2010 second quarter financial results:

• Revenues Up 286.2% Year-Over-Year to $39.8 million.
• Net Income Attributable to Worldwide Reaches $1.3 million, Up From Net Loss of $1.1 Million.
• EPS of $0.23, Up From $0.30 Loss Per Share in 2Q09

Jimmy Wang, chairman and chief executive officer of Worldwide, stated: "We are excited to report another record revenue quarter, as well as strong financial results in our second fiscal quarter. Our success in penetrating the solar module market through our AmeriSolar brand is clearly showcased by the dramatic increase in solar revenues during the second quarter, and we also benefited from the effects of stabilizing market prices and a significant increase in demand over 2009 levels. Our manufacturing division experienced similarly strong growth this quarter, driven by an increase in order shipment volume. The Company enters the second half of 2010 with a record backlog, which currently stands in excess of $100 million. The brand new solar manufacturing and research facility in Nantong is completed, and we have high expectations for the plant's contribution to the Company's financial performance in the near future."

GeoTeam note: A closer inspection of the results reveals that, after adjusting for non-cash items, WEMU actually reported EPS of $0.03 results for the 2010 second quarter vs. $0.07 in the second quarter of 2009.

The Company has secured contracts in its second quarter with 15 new solar customers, located primarily in Germany, France, Italy, and the United Kingdom, bringing the Company's total client base for its Solar Division to roughly 60 customers. Orders from the new clients average more than 1 MW of power each, with the largest accounting for 17.5 MW. Additionally, the Company's total order backlog now exceeds $100 million, and management expects the majority of the pending orders to be completed and shipped by the end of the year.

Worldwide estimates that it delivered a total of more than $38 million in orders during the second quarter, compared with $10.3 million in the same period last year, an increase of about 270% year-over-year. The Company's solar division alone shipped roughly $35 million in orders in its second 2010 fiscal quarter, an increase of roughly 370% from second quarter 2009 sales of $7.5 million.

Global demand for photovoltaic solar panels continues to show enormous growth potential for the second half of 2010. Solar research and consulting firm Solarbuzz recently raised its projection of the 2010 photovoltaic market size to 15.2 GW, more than double 2009 installations of 7.5 GW. Companies in the industry generated estimated revenues of $12 billion in the first quarter of 2010, or almost 300% greater than first quarter revenues in 2009.

Worldwide's Chief Executive Officer, Jimmy Wang, stated: "Our strong order backlog and new client additions in the recently ended second fiscal quarter speak to the quality of our products and our growing industry exposure. As we enter the second half of our fiscal year, we are very optimistic and expect to deliver continued strong financial performance for the foreseeable future."

Source: Globe Newswire

Second quarter revenues are expected to exceed $30 million, an approximate 200% increase compared to the same period a year ago.

Commenting on today's news, Chief Executive Officer Jimmy Wang stated, "It is with great pleasure that we provide our shareholders with such a positive quarterly update. The numbers we provided to the marketplace in the first quarter as well as the anticipated revenue numbers for our second quarter are outperforming the expectations that we previously held for the Company internally. The Company will keep shareholders well informed of any new developments and will release new positive forward-looking guidance when the second quarter financials are released in August 2010. At this point, we fully anticipate a record year for the Company and we remain very confident in our business model for the foreseeable future. We look forward to sharing any additional information with our shareholders as it becomes available."

"Though we will not meet our $100 million revenue goal in 2009, I am confident we will generate $60 million in revenue; EBIDTA of $2.5 million or approximately 70 cents and a net income of approximately $2 million, or approximately 56 cents per share. Our solar division continues to drive the growth in our company. We expect 2010 to be a blockbuster year for our solar division. We continue to focus on building our solar module division and enhancing our factory operations."

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b EBITDA and Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time,  differ from company supplied figures.

^c GeoCalculated Figure

Guidance Report:

Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing, stated: "We are very pleased to announce the best year end result in our company's history. Our Solar Energy division is performing beyond expectations and with our new solar factory and new solar contracts, we expect triple-digit growth both in revenue and net income in 2009.

"Already we have $52 million in backlog solar orders for 2009. Our new solar factory in Ningbo, China has the capacity to generate $225 million in revenue. Our gross margins and ultimately our net margins will increase substantially as we will manufacture all solar modules in our own factory. Our strong financial performance clearly demonstrates that the company has successfully made the transition into the renewable energy market as well as maintaining strength in its other contract manufacturing business. We have successful laid the foundation in 2008 to provide explosive growth in 2009."

Full Year Fiscal 2009 Guidance Ending December

*The Company did not provide 2009 EPS guidance.  The GeoTeam® calculated an implied 2009 EPS guidance number using year end outstanding shares of 3,334,473 million.

Source: Marketwire (April 13, 2009)