Power Efficiency announces first quarter 2011 results

Wednesday, May 18, 2011

Power Efficiency Corporation (OTC: PEFF), a clean tech company focused on energy efficiency technologies for electric motors, reported financial and operating results today for the three months ended March 31, 2011.

“We are happy to have seen our sales increase again in the first quarter of 2011 as we see continued adoption of our digital products. During the first quarter of 2011 we had several very important events and milestones, including”

Total revenues for the first quarter of 2011 were $158,605, an increase of $48,575 or 44% over the first quarter of 2010. Including an inventory obsolescence charge of $20,394, the Company still increased its gross margin over the first quarter 2010 gross margin of 16%. The Company recorded gross profit of $29,698, or 19% for the first quarter of 2011. Net loss for the first quarter 2011, including $53,946 in non-cash expenses related to stock based compensation, was $870,666.

Steven Strasser, Chairman and CEO of Power Efficiency, stated, “We are happy to have seen our sales increase again in the first quarter of 2011 as we see continued adoption of our digital products. During the first quarter of 2011 we had several very important events and milestones, including:

Received and fulfilled an order for units to go on many of the escalators at one of the country’s largest airports

Opened an office in Hong Kong

Began shipments of our second generation product for motors up to 80 amps (60 horsepower at 460 volts). These are our highest volume products. We expect our second generation product to have the following broad advantages over our first generation product:

- A more powerful processor, capable of faster reaction times and additional features

- Improved energy saving

- Decreased cost per unit

Mr. Strasser further commented, “We are particularly excited about our second generation product because of the overall increase in performance and capabilities, and the expected decreases in costs. I am very pleased to open an office in Hong Kong. All the major vertical transportation OEMs have significant business in Hong Kong and the rest of Asia. We have already received orders for installations in Macau, Hong Kong and Singapore. There are significant opportunities for E-Save Technology because of the unprecedented economic development in Asia combined with an increasingly strong emphasis on energy efficiency. China in particular has proclaimed that energy efficiency is one of the top national priorities and one of the seven strategic emerging industries over the next five years. Most new equipment, including escalators and industrial equipment, is now manufactured in Asia, and much of it is sold to Asian customers. I expect our revenues from Asia to grow significantly in the medium and long term. Having a presence in Asia allows us to pursue business opportunities and serve our customers more effectively.”

Source: Business Wire