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Event Date: 05/08/2008
Event Time: 11:00 AM Eastern
Event Title: Microfield 1st Qtr 2008 Financial Results
URL- http://www.investorcalendar.com/IC/CEPage.asp?ID=129036
Webcast Replay Available Until: 05/21/2008
Live Participant Dial In (Toll Free): 877-407-0778
Live Participant Dial In (International): 201-689-8565
MICROFIELD GROUP REPORTS RECORD FIRST QUARTER 2008 RESULTS
Portland, OR – May 8, 2008 -- Microfield Group, Inc. (OTC Bulletin Board: MICG) and its subsidiary, EnergyConnect, announced financial results today for the first quarter ended March 29, 2008. The Company generated revenues from continuing operations of $7,379,000 for the first quarter 2008 compared to revenues of $2,600,000 for the first quarter 2007, an increase of $4,779,000.
The company has revised its accounting for reserves for collection of revenues. This change results in a first quarter that includes four months of payments. The revision reflects the company’s proven ability to more accurately estimate collections. Previously revenue was estimated monthly, reserved and then recognized upon receipt. Beginning with the first month of 2008, revenue was recognized without reserve. This revision resulted in additional revenue, of $1,584,000 being recorded in the first quarter of 2008. On a three month comparative basis, revenue for the first quarter of 2008 was $5,795,000 compared to $2,600,000 for the same period last year.
“The increase between comparative periods is indicative of the rapid acceptance of EnergyConnect’s price based energy products in key U. S. electric grids,” Randy Reed, Microfield’s Chief Financial Officer, noted. “Our automated and easy to use systems provide an attractive income opportunity for large energy consumers.”
The loss from continuing operations for the first quarter of 2008 was $1,904,000 compared to an operating loss of $1,339,000 for the three months ended march 31, 2007. This increased loss was due to higher SG&A expenses driven by increases in headcount and system development costs as the EnergyConnect continues to build its revenue base and product offerings.
The Company recorded a net loss of $2,079,000 or $0.02 per share for the three months ended March 29, 2008, compared to a net loss of $1,972,000 or $0.02 per share for the three months ended March 31, 2007. Included in these losses are operating losses from our discontinued subsidiary, Christenson Electric of $175,000 and $634,000 for the three months ended March 29, 2008 and March 31, 2007, respectively.
Operating expenses for the three months ended March 29, 2008 were $3,102,000, compared to $1,777,000 in the three months ended March 31, 2007. The increase of $1,325,000 between quarters was primarily due to salaries, benefits and related costs associated with new hires and development expenses in this year’s first quarter that were not in last year’s first quarter. These expenses were within the range of expectations for first quarter 2008 expenses.
With respect to the balance sheet, quarter ending unrestricted cash was $118,000 compared to $759,000 at December 29, 2007. This decrease of $641,000 is the result of normal cash usage.
Commenting on the first quarter results, Rod Boucher, Microfield’s Chief Executive Officer, said, “The first quarter results reflect increased activity from existing participants plus substantial contributions from new participating electric consumers. These results match our growth expectations and affirm our business plan, and are a credit to the dedication of our employees.”
MICROFIELD GROUP ANNOUNCES COMPLETION OF FINANCING
PORTLAND, Ore.--(BUSINESS WIRE)—Microfield Group, Inc. (OTCBB:MICG - News), an innovator and leader in the demand response marketplace, announced today that it has raised $3.6 million through a private placement.
The Company issued approximately 9 million shares of common stock at $0.40 per share and 4.5 million warrants with an exercise price of $0.60 per share.
Randy Reed, Chief Financial Officer, noted, “This financing is anticipated to be sufficient for all cash needs of the company through 2008. This has been a difficult environment in which to raise funds, so we have chosen to limit the raise, while still funding growth in 2008 as planned.”
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