Carmanah Announces Q3 2009 Results

http://www.businesswire.com/news/home/20091112005992/en

VICTORIA, British Columbia--(Business Wire)--
Carmanah Technologies Corporation (TSX: CMH) today announced its third quarter
financial results for the three-month period ending September 2009. (All amounts
are in US dollars.)

Highlights for the Quarter

* Revenues: $9.5 million, down from $12.2 million for the same period in 2008
* Signal & Illumination Revenues: $5.4 million, down from $6.9 million for the
same period in 2008
* Gross margin: 33%, down from 38% in 2008
* Operating expenses before restructuring: $3.2 million, down from $4.1 million
for the same period in 2008
* Net income: $1.2 million, up from $0.7 million in 2008
* Adjusted EBITDA: $1.4 million, up from $1.2 million in 2008
* Cash flow from operations: $1.7 million, up from negative cash flow of $0.9
million in 2008
* Cash balance: $8.9 million as at September 30, 2009, up from $4.1 million at
the same period in 2008
* Nil debt: Continued debt-free operation

Summary of Results

Although the global economic downturn continues to present a challenge, a
streamlining of operations and the resulting reduction in operating expenses is
helping to keep operating costs low, while the introduction of several new
products including the restyled EverGEN 1710 light presents new opportunities.
An initiative to realign its reporting segments will see the categories
previously referred to as "Strategic" and "Tactical," be referred to as "Signals
& Illumination" (including solar-powered beacons for marine, aviation &
industrial applications and solar powered area lighting) and "Systems & Other"
(including mobile power systems, off grid and grid tie solar power systems).
Also, effective this quarter, the company has changed the reporting currency of
its financial information from Canadian dollars to US dollars. This action,
previously communicated in the company`s second quarter report, better reflects
the profile of its revenue and net profit, which are now primarily generated in
US dollars.

"As the next step in our company`s evolution, we celebrated some significant
milestones this quarter, with the launch of some exciting new products including
the M650 and A650 signal lights, and of course the EverGEN 1710," said Ted
Lattimore, Carmanah CEO. "We also saw some significant applications of our
lighting technology at facilities such as SONGS and NASA. Looking ahead, our
priorities remain: focus on our strengths, keep costs low, and continue to offer
the high quality, cost-effective solar technology."

"We feel that reporting in US dollars will better reflect our business
activities, mirror our transactional functional currency and improve financial
statement users` ability to compare our financial results," said Roland
Sartorius, CFO, Carmanah Technologies. "As our business has evolved in recent
years, so have the currencies in which we primarily transact our business. Our
pricing, manufacturing, and most of our expenses are in US dollars, so reporting
is US dollars makes good sense. Although this quarter was a challenging one,
Carmanah continues to have zero debt, cash in the bank, loyal customers, and
some of the brightest and most innovative solar lighting products out there.
Moving forward we`ll continue to control costs and deliver the technology that
today`s lighting market needs."

Sales

Sales for the third quarter of 2009 were USD $9.5 million, down approximately
USD $2.7 million from the same period in 2008. The overall decline in sales,
both for the three-months ended and nine-months ended September 30, 2009, was
again due in part to lower System & Other revenues caused by exiting various low
margin product lines. A summary of revenues from each of the company`s Signals &
Illumination and "Systems & Other" business segments is displayed below:

Sales For the three months ended September 30
(US$ thousands) 2009 2008 Change
$ Mix $ Mix $ %
Signals & Illumination
Solar LED Lights 4,354 46 % 6,800 56 % (2,446 ) 36 %
Solar Power Systems 1,042 11 % 131 1 % 911 695 %
Total Signals & Illumination 5,396 57 % 6,931 57 % (1,535 ) 22 %

Systems & Other
Solar Power Systems and Grid-tie 4,099 43 % 2,248 18 % 1,851 82 %
Other - 0 % 2,991 25 % (2,991 ) 100 %
Total Systems & Other 4,099 43 % 5,239 43 % (1,140 ) 22 %

Total Revenue 9,495 12,170 (2,675 ) 22 %

Summary of EBITDA and Net Income

* Adjusted EBITDAfor Q3 2009: $1.4 million
* Net income: $1.2 million

Non-GAAP Measures

The Company uses certain non-GAAP measures to assist in assessing its financial
performance. Non-GAAP measures do not have any standardized meaning prescribed
by GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. One such non-GAAP measure used for assessing
financial performance is net income (loss) before interest, income taxes,
amortization, and restructuring charge ("Adjusted EBITDA").

Adjusted EBITDA reconciliation For the three months ended
($ thousands) September 30, 2009 September 30, 2008
Net income 1,244 746
Add (deduct):
* Interest (121 ) (13 )
* Income taxes (11 ) 40
* Amortization 202 470
* Restructuring charge - 466
* Discontinued operations 104 (467 )
Adjusted EBITDA 1,418 1,242

Progress During the Quarter

During this quarter, Carmanah made continued progress in refining and
accelerating the company`s focus on its strategic direction:

* Carmanah unveiled the EverGEN 1710 solar light developed in partnership with
frog design. Designed as a compact stand-alone lighting alternative for off-grid
parking lots and other municipal, commercial or industrial areas, the new
EverGEN 1710 light combines advanced motion-sensing capabilities with a range of
energy saving operating profiles to ensure bright, reliable illumination
whenever and wherever it's needed. (September 10, 2009)

Other highlights during this quarter included:

* One of California's largest state utilities, Southern California Edison (SCE)
illuminated the main employee parking areas at its San Onofre Nuclear Generating
Station (SONGS) EverGEN 1500-series solar lights (August 25, 2009)
* Carmanah divested of its LED edge-lit signs business. The Company and Dr.
David Green closed on an agreement whereby Dr. Green, through his holding
company, purchased Carmanah's LED edge-lit signs business, Carmanah Signs Inc.
("CSI"). As part of the transaction, Dr. Green resigned as a member of the
Carmanah Board of Directors. (August 18, 2009)
* A Tucson, Arizona-based high-tech equipment designer and manufacturer
installed Carmanah 1520 solar parking lot lights as part of an initiative to
reduce energy consumption (July 30, 2009)
* Carmanah introduced the M650 solar-LED marine lantern. Featuring a simple
on-board programmable interface, convenient USB connection, replaceable battery
pack and intelligent deployment capability, the M650 lantern provides up to four
nautical miles of visibility making it ideal for lighting ports, harbours and
marinas; marking obstructions and nautical hazards; or illuminating aids to
navigation in all types of environments. (July 29, 2009)
* Durham College powered up with Carmanah solar technology. The College used
Carmanah solar technology to help conserve energy and reduce electricity costs
at its Whitby, Ontario campus. (July 21, 2009)
* NASA's Stennis Space Center equipped a green facility with EverGEN 1520
solar-LED parking lot lights. The lights were installed at the Stennis Space
Center's new Cryogenics Control Center facility (July 16, 2009)
* Carmanah partnered with frog design to introduce the next generation of
solar-LED area lights. Established in 1969, frog design is a global innovation
firm that has pioneered some of the world's most groundbreaking designs for
trendsetting companies. (July 15, 2009)
* Carmanah introduced the A650 aviation and obstruction light. Featuring a
groundbreaking user interface, replaceable battery pack, intelligent-deployment
capability and up to 10 candela of intensity (steady-on), the new A650 aviation
and obstruction light is ideal for taxiway and apron-edge lighting, emergency
airfield and helipad lighting, airfield construction barricade lighting, and
obstruction lighting. (July 8, 2009)

Complete set of Financial Statements and Management Discussion & Analysis

A complete set of Q3 2009 Financial Statements and Management`s Discussion &
Analysis are available on Carmanah's corporate website. To view full financials,
visit: www.carmanah.com/Company/Investors/Financial_Reports.aspx.

About Carmanah Technologies Corporation

As one of the most trusted names in solar technology, Carmanah has earned a
reputation for delivering strong and effective products for industrial
applications worldwide. Industry proven to perform reliably in some of the
world's harshest environments, Carmanah solar LED lights and solar power systems
provide a durable, dependable and cost effective energy alternative. Carmanah is
a publicly traded company, with common shares listed on the Toronto Stock
Exchange under the symbol "CMH". For more information, visit carmanah.com.

Carmanah Technologies Corporation

"Roland Sartorius"

Roland Sartorius, Chief Financial Officer

This release may contain forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words such as
"expects," "plans," "estimates," "intends," "believes," "could," "might," "will"
or variations of such words and phrases. Forward-looking statements involve
known and unknown risks, uncertainties, and other factors which may cause the
actual results, performance, or achievements of Carmanah to be materially
different from any future results, performance, or achievements expressed or
implied by the forward-looking statements. These statements are based on
management`s current expectations and beliefs and are subject to a number of
risks and uncertainties which are described under the caption "Note Regarding
Forward-looking Statements" and "Key Information - Risk Factors" and elsewhere
in Carmanah`s Annual Report for the fiscal year ended December 31, 2008, as
filed on SEDAR at www.sedar.com. The risk factors identified in Carmanah`s
Annual Report are not intended to represent a complete list of factors that
could affect Carmanah. Accordingly, readers should not place undue reliance on
forward-looking statements. Carmanah does not assume any obligation to update
the forward-looking information contained in this press release.

Carmanah Technologies Corporation
Investors:
Investor Relations: Roland Sartorius, CFO
Toll-Free: 1.877.722.8877
investors@carmanah.com
or
Media:
Public Relations: David Davies
Tel: +1.250.382.4332
ddavies@carmanah.com

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