|APWR. Now down about 65% since the REC TO BUY NOW OR CRY, was made at $8+.....And now this wonderful news! This is a huge drop in their expected revenue and net income.|
<<A-Power Energy Provides Updates on 2008 Fourth Quarter Guidance
Tuesday December 30, 10:02 am ET
SHENYANG, China, Dec. 30 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR - News; "A-Power" or the "Company"), announced today updates on its fourth quarter guidance for the period ending December 31, 2008.
For the 2008 fourth quarter, the Company now expects revenue to be approximately $76 million and net income to be approximately $5 million. Both revenue and net income guidance are now lower than previous guidance of $158 million and $15.5 million, respectively.
Mr. Jinxiang Lu, A-Power's Chairman and CEO, commented, "Due to the unusual current macro economic conditions, a few of our key potential contracts, which we expected to close in the fourth quarter, were postponed. As our projects are highly capital intensive, we always require a sizeable down payment as a key component of our standard contract. Under today's environment, we believe that it is even more important to exercise prudence on customers' payment terms and to continue to focus on our cash flow management. Entering into 2009, we remain confident with a positive outlook for China's wind energy market as both government and enterprises have a strong commitment for renewable energy development, and we maintain a leading position in the marketplace, where the barrier to enter is high. As a result, we continue to expect profitable growth in 2009."
As of September 30, 2008, the Company's cash and cash equivalents totaled $59.7 million compared with $35.8 million as of December 31, 2007. Bank loans were zero compared with $0.96 million as of December 31, 2007. Working capital as of September 30, 2008 was $95.8 million compared with $38.0 million as of December 31, 2007.
The Company continues to conduct search for qualified CFO. The Company also believes that current economic condition creates more opportunities and options for A-Power to locate the most suitable candidate.
A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiaries, is the largest provider of distributed power generation systems in China and entered into China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou.>>