Comverge Announces Q1 Results

Comverge, Inc. (Nasdaq: COMV), which launched its IPO about a month ago, reported financial esults for the first quarter.


“I am pleased to report we started off 2007 with increased market momentum. We were awarded several new or expanded VPC contracts for residential, commercial and industrial demand response programs totaling 149 megawatts of clean capacity,” said Robert M. Chiste, CEO. “Through the trust and confidence shown to us by our utility customers, independent system operators and state utility commissions, Comverge now has almost 500 megawatts of capacity under long-term contract.” Deferred revenues at the end of the first quarter were $9.8 million, up from $7.5 million at the end of the first quarter of 2006, an increase of 31%. First quarter revenues for 2007 were $5.7 million, compared to $5.9 million in the first quarter of 2006. Revenues for both periods exclude revenues under VPC contracts which are deferred and recognized in the fourth calendar quarter each year.


Net loss was $4.5 million or $1.25 per share, compared to a net loss of $2.8 million for the first quarter of 2006, or $0.89 per share.


In April 2007, the Company completed its initial public offering of 5.3 million shares of common stock at $18 per share. After IPO fees, commissions and expenses, the Company had net proceeds of $86.1 million. Those proceeds combined with the $40 million GE Capital financing provide the Company with over $125 million to grow its business and pursue strategic acquisitions.


In May 2007, the Company announced another contract award for 126 megawatts with Nevada Power Company bringing the total potential capacity under the VPC contracts to over 495 megawatts. For this contract, Comverge expects to recognize between $25 and $30 million of revenue during 2007 – 2009. Combined with the $195 million of expected future revenues from long- term contracts as of March 31, 2007, total expected future revenues exceed $220 million as of May 22, 2007.


Comverge, Inc. is a clean capacity provider of energy solutions that enhance grid reliability and enable utilities to increase available electric capacity during periods of peak energy demand.

Website: http://www.comverge.com     
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