November 14 , 2007
Power Efficiency Corporation Reports Third Quarter Financial Results
Revenues Grow by 50% Over Q3 2006; Sales Order Backlog Exceeds $200,000
November 14, 2007 – Las Vegas, NV – Power Efficiency Corporation (OTCBB: PEFF.OB), a green energy company focused on efficiency technologies for electric motors, today announced its third quarter 2007 financial results.
Revenue for the quarter ended September 30, 2007 was approximately $121,000, an increase of 50% compared to approximately $80,000 for the comparable period last year. Net loss for the quarter was $984,000, or $0.03 per share, as compared to a net loss of $1,138,000, or $0.05 per share, for the third quarter of 2006. For the nine months ended September 30, 2007, revenue was $388,000, as compared to $148,000 for the comparable period last year. Net loss for the first three quarters of fiscal 2007 was $2,743,000, or $0.07 per share, compared to a net loss of $3,961,000, or $0.17 per share, in the same period last year.
Steven Strasser, Chairman and CEO stated, “We are pleased that revenue for the third quarter grew considerably over the same period last year. Further, our revenue through the first three quarters of 2007 is more than double our revenue for all of 2006. We are even more pleased that our present backlog of sales orders exceeds $200,000.”
During the quarter the Company announced a number of important achievements, including:
- Sales to and purchase orders for installations at shopping malls and department stores in southern California
- Being approved for rebates and other utility incentive financing programs for customers that purchase of our products
- An agreement with a global contract manufacturer for volume production and our first volume order for digital units with that contract manufacturer
- Opening a dedicated Technology Center for additional development and specialization of our products and technology
- Additional national and international patent filings on new innovations
Looking forward Strasser added, “Our main goals for the remainder of 2007 and the beginning of 2008 continue to be growing retrofit sales to end users and through our service provider partners, and gaining commitments from Original Equipment Manufacturers to adopt our E-Save Technology™. We have announced that numerous OEMs of motors, controls and motor-driven equipment are evaluating adopting E-Save Technology™ as a standard component on their equipment. The list of OEMs considering adopting our technology continues to grow and we are progressing through testing and business discussions with these companies. Furthermore, in early 2008, we have plans to implement an active sales effort in the European market. We believe this is an excellent market for our technology because power prices are relatively high and there is greater attention to improving energy efficiency and reducing carbon emissions.”
About Power Efficiency Corporation
Power Efficiency Corporation is a green energy company focused on efficiency technologies for electric motors. Power Efficiency is incorporated in Delaware and is headquartered in Las Vegas, Nevada. The Company has developed a patented and patent-pending technology platform, called E-Save Technology™, which has been demonstrated in independent testing to improve the efficiency of electric motors by 15-35% in appropriate applications. Electric motors consume over 25% of the electricity in the U.S. and many operate inefficiently. E-Save Technology™ can be licensed to motor, controls and equipment manufacturers. Power Efficiency’s first product based on E-Save Technology ™ is a Motor Efficiency Controller for applications such as escalators, crushers, granulators, mixers, saws, and MG elevators. Power Efficiency is also developing a new product based on E-Save Technology™ for the tens of millions of small motors found in applications such as residential air conditioning, pool pumps, and clothes dryers. The company is working with manufacturers to incorporate this technology directly into new motors and appliances. For more information go to www.powerefficiency.com.
Contact:
Power Efficiency Corporation
B.J. Lackland, CFO, (702) 697-0377
Kenneth Munson, VP Sales and Marketing, (702) 697-0377
Andrew Barwicki, Investor Relations, (516) 662-9461
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company’s SEC Filing. Power Efficiency assumes no obligation to update the information in this release.
