PENNINGTON, N.J.--(BUSINESS WIRE)--WorldWater & Power Corp. (OTC BB: WWAT.OB - News), developer and marketer of proprietary high-power solar systems, today released a general summary of corporate milestones achieved in 2006 that it believes will propel the company to major growth over the next several years. Quentin T. Kelly, Chairman of WorldWater & Power Corp., stated, "The year 2006 proved to be a breakthrough year for WorldWater in many aspects: sharply increased revenues, gross profits, strategic partnerships, acquisition progress, technological advances, multiple project signings and job completions on time and on budget. Our people and the unique patented technology we have developed have opened doors to bidding and winning larger contracts in expanding markets, with new applications and partnerships significantly broadening our business base."
During the year, the Company completed and or initiated 19 commercial or industrial projects in California, New Jersey, Delaware and Texas, in addition to more than a dozen residential systems. WorldWater expects to meet its earlier guidance of $17 million for 2006, according to Mr. Kelly.
Revenue for the 3rd Quarter of 2006 was the best in the Company's history, $6.5 million with gross margins of 22%, compared to revenue of $1.5 million for the 3rd Quarter of 2005. WorldWater & Power expects that revenue in the 4th Quarter 2006 will surpass 3rd Quarter 2006 results. The 4th Quarter also saw completion of the company's largest solar project to date, the $7.8 million Farm ACW avocado ranch in California, believed to be the world's largest application of solar for agriculture, and the initiation of two projects under the company's new Power Purchase Agreement (PPA) sales program (St. Joseph of the Palisades High School and Gerrard Berman Day School, Solomon Schechter, both in New Jersey, with Nautilus Solar Energy, LLC as the system owner).
In November 2006, the Company signed a strategic alliance with EMCORE Corporation (NASDAQ: EMKR - News) wherein EMCORE purchased 26.5% of WorldWater stock on a fully diluted basis for $18 million in cash ($13.5 million on signing and $4.5 million on completion of the strategic agreement before Jan 31, 2007). Under the strategic agreement, EMCORE will supply its high-efficiency multi-junction solar cells and concentrator systems to WorldWater for marketing to the terrestrial market. Contract value of the WorldWater purchase of cells and concentrator systems from EMCORE is up to $100 million over the next 3 years.
In July, WW&P entered into a Letter of Intent (LOI) with ENTECH, Inc. of Keller, TX, to acquire the company. The LOI was extended by both parties in late December and the acquisition is expected to be completed shortly. ENTECH is a developer and manufacturer of advanced concentrating solar photovoltaic and thermal technologies for terrestrial and space power applications and has developed record-breaking solar conversion concentrator systems. ENTECH develops and supplies proprietary solar technology for space missions for NASA, DOD and commercial customers, and has installed ground-based systems. The combined technologies of ENTECH, EMCORE and WorldWater are expected to generate and deliver solar electric and thermal energy for terrestrial purposes at prices competitive to retail electric and natural gas prices without relying on rebates.
In addition to the economics of combining technologies, Mr. Kelly declared, "With EMCORE's multijunction cells in the focal spot of ENTECH's optics creating 500x to 1000x concentrated sunlight, and WorldWater's electronic control devices translating that concentrated electrical energy into megawatts of working power in the field, we expect to add a whole new dimension to the public's understanding of solar energy. We're bringing the future into the present." www.worldwater.com