Arise Technologies | 3Q2010 Results

[RangersFan]

Arise Technologies
HQ: 65 Northland Road, Waterloo
TSX: APV
www.arisetech.com

http://www.arisetech.com/templates/arisetech2/images/banner.jpg

Company Overview
ARISE Technologies Corporation, based in Waterloo, Ontario, is dedicated to becoming 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 percent.
The PV Silicon Division is using a proprietary method to produce silicon at 7N+ high-purity (99.99999 percent 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 PV solutions for solar farms and rooftop installations since 1996 throughout North America. 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 financial information is available at www.sedar.com.

[RangersFan]

ARISE Technologies Announces Preliminary First Quarter Results
Waterloo, ON | April 14, 2010 | http://www.arisetech.com/images/stories/documents/press/arise%20technologies%20announces%20preliminary%20f irst%20quarter%20results%20final.pdf

ARISE Technologies Corporation (“ARISE” or “the Company”) (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced preliminary results for the three months ended March 31, 2010.

The preliminary unaudited results indicate that the Company’s shipments of photovoltaic (“PV”) cells are expected to be approximately 13.9MW for the first quarter of 2010. This represents a 99% increase from the 7.0MW shipped in the fourth quarter of 2009. It also represents a significant increase from the 2.3MW shipped in the first quarter of 2009.

Revenue for the first quarter of 2010 is expected to total approximately $15.8 million, which represents a 39.8% increase from $11.3 million in the fourth quarter of 2009 and a 119% increase from $7.2 million in the first quarter of 2008. ARISE cautions that these results are based on unaudited preliminary company data and may be subject to final adjustment.

“During the first quarter, we saw further improvements in key areas of our business. We are encouraged by these preliminary results as they mark a fourth consecutive quarter of increased shipments, and point to an ongoing increase in demand for PV solar cells,” said Vern Heinrichs, ARISE’s President and Chief Executive Officer. “The European and Ontario solar markets are very active and we expect to continue to see strong demand throughout 2010 for PV cells, modules and systems. Subject to completing our financing, we currently expect Line Two at our German plant to be in full production before the end of the second quarter. We also continue to make progress in the silicon division and we are in discussions with several parties with respect to various options to move the technology into production.”

“As we approach the second anniversary of producing our first PV Cell in Germany on April 17th, ARISE has now shipped over 40MW of PV cells representing more than $80 million in total revenue,” concluded Mr. Heinrichs.

In early May, ARISE expects to release its 2010 first-quarter financial results and hold a conference call and webcast. Details on the timing will be provided closer to the release.

[UrbanWaterloo]

ARISE Technologies Reports First Quarter Results
Revenues increase by 125% and EPS loss narrows to $0.02 from $0.12 compared to same period last year
http://www.arisetech.com/images/stories/documents/press/arise%20q1%202010%20results%20final.pdf

Waterloo, Ontario, May 12, 2010 – ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), which is dedicated to becoming a leader in high-performance, high-quality, cost-effective solar technology, today reported its financial results for the first quarter ended March 31, 2010. Financial results conform to Canadian generally accepted accounting principles (“GAAP”) and all currency amounts are in Canadian dollars unless otherwise noted.

Q1 2010 Highlights:

Total revenue of $16.2 million, compared with $7.2 million in Q1 2009
Net loss of $2.7 million, compared with a net loss of $14.8 million in Q1 2009
Shipped 13.9 MW of PV cells, an increase of 500% from 2.3 MW in Q1 2009
Good progress on PV cell customer and regional diversification
Tested first ARISE PV modules manufactured in Ontario
“We are very pleased to report continued significant improvements across our operations during the first quarter of 2010. Our total revenue increased by 125%, compared to the first quarter of 2009. Revenue for the first quarter of 2010 was also up 43% over the fourth quarter of 2009,” said Vern Heinrichs, President and CEO of ARISE.
“Our PV cell shipments accelerated dramatically during the quarter due to increased production and the sale of most of our year end finished goods inventory. The strengthening solar marketplace also helped ARISE ship 13.9 MW of PV cells during the first three months of the year. During the first quarter, shipments were up 500% compared to a year ago and increased by 98% over the fourth quarter of 2009. During the quarter we were able to expand our shipments outside of Germany to other countries including France and Canada, as more customers are requesting a ‘made in Germany’ premium quality PV cells to support their marketing strategies,” added Mr. Heinrichs.
“Line Two at our PV manufacturing plant in Germany is expected to be in production by the first week of June, slightly ahead of our earlier projections, helping to meet continued strong demand for our products. We are very pleased with the increases we have been able to achieve in cell efficiency, high production yield and consistency of product. As part of the agreement with Commerzbank to extend our credit facility, we have committed to inject €5 million into ARISE Technologies Deutschland GmbH (ARISE Germany) by the end of May, 2010 to support the capital expenditures and the working capital in that operation,” commented Mr. Heinrichs.
“In Ontario, our Systems Division has signed more than 35 contracts since the advent of the Ontario Feed-In Tariff program. Contracts range from private houses to schools and universities. Over half of these are either completed or under construction at this time. To support our future business, we have started testing the first ARISE PV modules manufactured in Ontario by a third party manufacturer. Having ARISE modules in made Ontario will allow us to meet the Ontario Power Authority’s domestic content requirements that will take effect in 2011.”
“Finally, we continue to conduct discussions and negotiations with potential strategic partners for our silicon technology. We look forward to providing updates on our progress in this area over the coming months,” concluded Mr. Heinrichs.

Financial Overview
Sales for the quarter ended March 31, 2010 amounted to $16.2 million, compared with $7.2 million in the first quarter of 2009. PV cells accounted for 96.3% of Q1 2010 sales with the balance being generated by the Company’s Systems Division.
Gross loss for the three months ended March 31, 2010 was $0.6 million, compared with a loss of $10.2 million for the same period in 2009.
Operating expenses for the first quarter of 2010 were $4.2 million, a decrease of 17% from $5.1 million for the quarter ended March 31, 2009.
R&D expenses decreased by 47% for the first quarter of 2010 to $0.9 million from $1.7 million in for the three months ended March 31, 2009.
General and administrative (“G&A”) expenses were essentially flat at $2.5 million, equivalent to the same period last year.
Selling and marketing expenses for the quarter ended March 31, 2010 were $0.3 million, flat when compared with the first quarter of 2009.
Net interest expense for the first quarter of 2010 was $0.6 million, virtually unchanged from $0.6 million for the three months ended March 31, 2009.
Other income and expenses for the quarter ended March 31, 2010, included a foreign exchange gain of $3.7 million, compared with a foreign exchange gain of $0.8 million for the first quarter of 2009.

Liquidity and Capital Resources
As at March 31, 2010, the Company had a working capital deficiency of $42.9 million consisting of current assets of $22.5 million less current liabilities of $65.4 million. 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.
Cash and cash equivalents and restricted cash at March 31, 2010 totaled $361,875, a decrease of $290,110 since December 31, 2009.
In the near future, ARISE expects to file a Preliminary Prospectus Supplement to our existing Base Shelf Prospectus.

[UrbanWaterloo]

ARISE Technologies Announces Preliminary Second Quarter Results
Waterloo, ON | July 15, 2010 | http://www.newswire.ca/en/releases/archive/July2010/15/c4481.html

ARISE Technologies Corporation ("ARISE" or "the Company") (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced preliminary financial results for the three months ended June 30, 2010. ARISE cautions that these results are based on unaudited preliminary Company data and may be subject to final adjustment.

The preliminary unaudited results indicate that revenue for Q2 2010 is expected to total approximately $15.3 million, which represents a 5% decrease from the $16.2 million in Q1 2010 and a 131% increase over the $6.6 million in Q2 2009.

Shipments for the second quarter of 2010 where 11.8MW, down 15% from the 13.9MW in Q1 2010 but 312% higher than the 2.9MW shipped in Q2 2009. The preliminary results indicate that inventory levels remain at the low end of the Company's target range with a small increase in inventory levels at the end of Q2 2010 compared with the end of Q1 2010.

The reduction in revenue and shipments from Q1 2010 to Q2 2010 reflects the one-time shipment of 4.7MW of older inventory in Q1 2010, which represented 21% of PV cell revenue and 34% of shipments (in MW) in that quarter. In Q2 2010, the Company started a major "tolling" contract with a customer that is providing their own unique full square mono wafers. This reduces revenue on a per unit basis, as ARISE does not purchase or sell the wafers being "tolled", however, it does not impact the gross profit compared to the typical supply model where ARISE purchases the wafers for its PV cells.

Revenue for the first half of 2010 is expected to be $31.4M, up 127% from the $13.8M in the first half of 2009. Shipments were 25.7MW for the first half of 2010, an increase of 396% over the 5.2MW shipped in the first half of 2009. The Company also reduced overall bank debt by (euro)5.9 million in Q2 2010.

"During the second quarter, we saw further improvements in our business and the ongoing increase in demand for PV solar cells," said Vern Heinrichs, ARISE's President and Chief Executive Officer. "The European and Ontario solar markets are very active and we expect to continue to see strong demand throughout 2010 and into 2011 for PV cells, modules and systems. We currently have more demand than capacity for our PV cells and have our customers on allocation."

"As we approach the second anniversary of volume production of PV Cells in Germany on July 16th, ARISE has now shipped over 52MW of PV cells representing more than $95 million in total revenue," concluded Mr. Heinrichs.

In early August, ARISE expects to release its Q2 2010 financial results and hold a conference call. Details on the timing of the call will be provided closer to the release.

[UrbanWaterloo]

ARISE Technologies Announces Preliminary Third Quarter Results
October 5, 2010 | http://www.arisetech.com/images/stories/documents/press/preliminary%20q3%202010%20results%20october%205%20 2010%20final.pdf

ARISE Technologies Corporation ("ARISE" or "the Company") (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced preliminary financial results for the three and nine months ended September 30, 2010. ARISE cautions that these results are based on unaudited preliminary Company data and may be subject to final adjustment.

The preliminary unaudited results indicate that revenue for Q3 2010 is expected to total approximately $23.0 million, of which $3.7 million was from wafer tolling. This result represents a 50% increase from the $15.3 million in Q2 2010 and a 249% increase over the $6.6 million in Q3 2009. With the successful ramp-up of Line Two in June 2010, the PV cell plant in Germany is also expected to achieve positive EBITDA (Earnings before interest, tax, depreciation and amortization) for the third quarter which would exceed the Company's internal target for the quarter.

Shipments for the third quarter of 2010 are expected to be 19.5MW, up 65% from the 11.8MW in Q2 2010 and 457% higher than the 3.5MW shipped in Q3 2009. The preliminary results indicate that inventory levels remain at the low end of the Company's target range. The Company expects that quarter over quarter PV cell shipment growth will be lower in the remainder of 2010 and 2011 as results now include Line Two operating at full capacity for an entire quarter. Additional PV cell shipment growth will be generated if the Company installs additional production lines.

Revenue for the first nine-months of 2010 is expected to be $54.4M, up 166% from the $20.4M in the first nine months of 2009. Shipments were 45.2MW for the first nine-months of 2010, which is an increase of 421% over the 8.7MW shipped in the first nine-months of 2009.

"During the third quarter of 2009 our PV cell shipments continued their strong upward trend as demand for our products outpaced existing production capacities," said Vern Heinrichs, ARISE's President and Chief Executive Officer. "The increased demand we have experienced throughout 2010 continues to drive strong top-line revenue growth, and preliminary results indicate that our third quarter revenue will increase by approximately 250% over the same period last year."

"In Ontario, our systems business continues to gain traction in this early stage market, with preliminary third quarter results pointing to a more than doubling of systems revenue over the previous quarter," continued Mr. Heinrichs.

"In regards to our Silicon Division, we continue our negotiations with now three major companies to structure an agreement to commercialize our proprietary high-purity, low-cost silicon technology. This process is taking longer than we had originally anticipated. Due to recent results from our R & D activities and increasing prices for silicon world-wide, we remain optimistic that we will be able to finalize our strategic approach soon," concluded Mr. Heinrichs.

In early November, ARISE expects to release its Q3 2010 financial results and hold a conference call. Details for the third quarter conference call will be provided closer to the date of the release.

12-Month Chart As Of October 6, 2010 10:42AM
http://www.wonderfulwaterloo.com/wdrive/Economy/Arise%20Technologies/Arise%20%28APV%29%20-%2012%20Month%20Chart%20As%20At%20October%206%2C%2 02010.gif

[UrbanWaterloo]

ARISE Technologies Reports Third Quarter Results
Revenues increase by 251% as shipments rise by more than 450%
November 4, 2010 | http://www.arisetech.com/images/stories/documents/press/arise%20media%20release%20q3%202010%20results%20fi nal.pdf

ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), which is a leader in high-performance, high-quality, cost-effective solar technology, today reported its financial results for the third quarter ended September 30, 2010. Financial results conform to Canadian generally accepted accounting principles (“GAAP”) and all currency amounts are in Canadian dollars unless otherwise noted.

Q3 2010 Highlights:
Total revenue of $23.0 million, compared with $6.6 million in Q3 2009 Net loss of $5.2 million, compared with a net loss of $5.5 million in Q3 2009 Recorded Adjusted EBITDA* of $0.4 million profit, compared with a loss of $4.5 million in Q3 2009 Shipped 19.5 MW of PV cells, an increase of 454% from 3.5 MW in Q3 2009 Sales from Systems Division increased 145% to $2.5 million from $1.0 million in Q2 2010
*ARISE defines Adjusted EBITDA as Earnings Before Interest Depreciation and Amortization, excluding stock-based compensation, the impact of one time asset writeoffs and foreign exchange

Subsequent to the end of Q3:
Appointed Dan Shea, President and Chief Executive Officer of ARISE Closed a US$1.75 million working capital bridge loan ("Loan") from Haverstock Master Fund, Ltd. and Trenrasp LLC
“Our momentum continued in the third quarter with significant increases in both revenue and PV cell shipments,” said Dan Shea, President and CEO of ARISE. “As a result of the continued demand for our products, combined with improved operating efficiencies at our PV cell plant in Germany, we were able to record a positive gross profit for the quarter and year-to-date. This is a significant achievement as we transition from a development stage company to a profitable leader in the solar space.”
“I am very encouraged by the strides that ARISE has taken over the past four quarters, posting consecutive improvements in both shipments and revenue. As CEO, my top priority is to drive the company towards profitability while continuing to strengthen the balance sheet,” added Mr. Shea. “With ongoing strong demand in Germany, we intend to increase the production capacity of our plant in 2011 with the commissioning of Lines three and four. Our discussions regarding a potential partner for the Silicon Division are ongoing and we are proceeding steadily and cautiously on this undertaking, with the goal of maximizing the value of this asset.”

Financial Overview
Sales for the quarter ended September 30, 2010 amounted to $23.0 million, compared with $6.6 million in the third quarter of 2009. PV cells accounted for 89% of Q3 2010 sales with the $2.5 million balance being generated by the Company’s Systems Division.
Gross profit for the three months ended September 30, 2010 was $2.1 million, compared with a loss of $2.0 million for the same period in 2009.
Operating expenses for the third quarter of 2010 were $3.7 million, the lowest quarter level in two years, decreasing 18% from $4.5 million for the quarter ended September 30, 2009.
R&D expenses of $0.9 million for the three months ended September 30, 2010 decreased by 37% from $1.4 million in the second quarter of 2010.
General and administrative (“G&A”) expenses decreased by 10% to $2.0 million, from $2.2 million in the third quarter of 2009.
Selling and marketing expenses for the quarter ended September 30, 2010 were $0.3 million, compared with $0.4 million in the third quarter of 2009.
Net interest expense for the third quarter of 2010 of $0.5 million, down 34% from the second quarter of 2010.
Other income and expenses for the quarter ended September 30, 2010, included a foreign exchange loss of $3.2 million, compared with a foreign exchange gain of $1.6 million for the third quarter of 2009. The largest component of the foreign exchange loss resulted from the translation into Canadian Dollars of financial liabilities of ARISE Germany which are denominated in Euros. During the quarter, the Euro strengthened by 7.4% compared to the Canadian dollar as at June 30, 2010.

Liquidity and Capital Resources
As at September 30, 2010, the Company had a working capital deficiency of $37.1 million consisting of current assets of $25.0 million less current liabilities of $62.1 million. 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 reflects cash raised from the issuance of shares during the period.
Cash and cash equivalents and restricted cash at September 30, 2010 totaled $0.8 million, compared to $0.7 million at December 31, 2009.

[UrbanWaterloo]

ARISE Technologies Completes First Closing of $12.5 Million Offering
Waterloo, Ontario | December 20, 2010 | PDF (http://www.arisetech.com/images/stories/documents/press/closing%20press%20release%20final.pdf)

ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced the first closing of its previously announced brokered offering (the "Offering") for aggregate gross proceeds of $12,400,000. The Offering consisted of the sale of 65,222,996 Units at a per Unit price of $0.19 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each share purchase warrant is exercisable into one common share at an exercise price of $0.21 and will expire on the second anniversary date of the closing date of the Offering unless such date is accelerated in accordance with the terms of the share purchase warrants. The expiry date of the share purchase warrants may be accelerated if the closing trading price of the common shares exceeds $0.60 for twenty consecutive trading days. NCP Northland Capital Partners Inc. and Raymond James Ltd. acted as co-lead agents for the Offering. The Company and the co-lead agents expect to complete a second closing in respect of approximately $110,000 on or before December 23, 2010.

The proceeds of the Offering will be used (i) to substantially fund the purchase of the equipment for a third production line at ARISE's PV Cell production facility in Germany; (ii) to repay the outstanding bridge loan of US$1,750,000; and (iii) for general corporate purposes.

ARISE has applied to list the share purchase warrants on the TSX. Such listing is conditional on ARISE meeting certain conditions which it believes will be met shortly.

[UrbanWaterloo]

ARISE Technologies Completes Third Closing of Aggregate $15.8 Million Offering
Waterloo, Ontario | January 14, 2011 | PDF (http://www.arisetech.com/images/stories/documents/press/third%20closing%20jan%2014%20final.pdf)

ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced the completion of the third closing in respect of $3,250,000 of its previously announced brokered offering (the “Offering”) for aggregate gross proceeds from the first, second and third closings of $15,800,000. The Offering consisted of the sale of an aggregate 82,913,258 Units at a price of $0.19 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each share purchase warrant is exercisable into one common share at an exercise price of $0.21 and will expire on the second anniversary date of the first closing date of the Offering on December 20, 2010 unless such date is accelerated in accordance with the terms of the share purchase warrants. The expiry date of the share purchase warrants may be accelerated if the closing trading price of the common shares exceeds $0.60 for twenty consecutive trading days. The share purchase warrants are listed under the symbol APV.WT.A on the TSX. NCP Northland Capital Partners Inc. and Raymond James Ltd. acted as co-lead agents for the Offering. The proceeds of the Offering will be used (i) to substantially fund the purchase of the equipment for a third production line at ARISE’s PV Cell production facility in Germany; (ii) to repay the outstanding bridge loan of US$1,750,000 (which has now occurred); and (iii) for general corporate purposes.