Solomon Reports 2008 First Quarter Financial Results
DANBURY, Conn., May 21 /PRNewswire-FirstCall/ — Solomon Technologies, Inc. (BULLETIN BOARD: SOLM) , a developer and manufacturer of high-efficiency regenerative electric power drive systems and high-voltage, high-power direct current power systems for markets requiring high levels of reliability and ruggedness, today announced its 2008 first quarter operating results for the period ended March 31, 2008.
Revenue for the quarter ended March 31, 2008 was $2,490,784, an increase of $1,059,187 or 74% compared with the quarter ended March 31, 2007. The increase in revenue is primarily attributable to sales from the recently formed Power Electronics Division.
Gross profit for the period was $974,387 compared with the year earlier period of $652,310. The increase in revenue is attributable entirely to the results of the Company’s Power Electronics Division.
Peter DeVecchis, President of Solomon commented, “We are making significant progress each quarter in bringing Solomon’s overall operations closer to cash flow breakeven. Our efforts in consolidating costs, identifying new market opportunities for our products and technologies and expanding our management breadth are now bringing tangible results. As we execute on both our acquisition and organic growth strategies, we believe the benefits will be substantial to all of our stockholders. We believe that revenue levels will continue to equal or exceed those of previous quarters.”
The Company reported a net loss for the three months ended March 31, 2008 of $1,422,668, a 54% reduction from its net loss of $3,047,232 for the three months ended March 31, 2007. Selling, general and administrative expenses were $1,000,447 for the period as compared to $1,251,938 for the year earlier period, a decrease of $251,491 or 20%. This decrease was primarily due to various corporate overhead and staffing reductions offset by the additional selling and administrative expenses incurred by the two businesses that comprise the Company’s Power Electronics Division.
Research and Development costs were $392,257 for the period as compared to $253,664 for the year ago period. The increase was solely the result of continued R&D expenditures in the Power Electronics Division in the amount of $392,257.
Interest expense declined to $855,045 for the quarter from $2,193,940 for the year ago quarter, a decrease of $1,338,895 primarily due to a decrease in accrued cash and non-cash interest charges related to the variable rate self- liquidating senior secured convertible debentures sold in January and August of 2007.
DeVecchis added, “We look forward to meeting with our shareholders at our Annual Meeting tomorrow in Hartford, Connecticut, when we will provide an overview of our business and a snapshot of the various opportunities before us.”
Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc., through its Power Electronics and Motive Power divisions, develops, licenses, manufactures and sells direct current power supplies and power supply systems requiring high levels of reliability and ruggedness for defense, aerospace, marine, commercial and industrial applications as well as precision hybrid and regenerative electric power drive systems, including those utilizing its patented electric Wheel(R) electric Transaxle(TM) for automotive, hybrid electric and all electric vehicle applications.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize terminology such as “may,”"will,”"should,”"likely,”"expects,”"anticipates,”"estimates,”"believes,” or “plans,” or comparable terminology, are forward- looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the Company’s filings with the Securities and Exchange Commission. The forward- looking statements contained in this release speak only as of the date hereof, and the Company undertakes no obligation to correct or update any forward- looking statements, whether as a result of new information, future events or otherwise.
Contact:
Solomon Technologies, Inc.
Peter DeVecchis, 727-859-4447
or
Crescent Communications
David Long, 203-226-5527
Solomon Technologies, Inc.
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