Solar Energy Initiatives, Inc. Announces Fourth Quarter and Year End 2009 Financial Results

October 27, 2009 8:30 AM EDT

SNRY Exceeds Guidance with Record Revenue of $2.6 Million

Sequential Quarterly Revenue Increases 459%

PONTE VEDRA BEACH, Fla.--(BUSINESS WIRE)-- Solar Energy Initiatives, Inc. (OTCBB: SNRY) executing on a grass roots campaign, "RENEW THE NATION", to help redeploy a portion of the U.S. work force and focus on reducing the world's dependence on fossil fuels by selling solar thermal and photovoltaic (PV) technologies, today announced that it has recorded $2.6 million in revenue for the Fourth Quarter ended July, 31 2009. This represents a 459% increase in sequential quarterly revenues.

"Management is extremely pleased to have successfully exceeded its previously stated top line guidance," said David Fann, CEO of SNRY. "Solar Energy Initiatives strong fourth quarter performance is a direct result of our ability to implement contracts from our rapidly growing $100 million project pipeline. Our proven business model of providing cost effective energy solutions to municipalities has established Solar Energy Initiatives as a recognized name within the renewable energy market. The recent announcement of our spin-off company, Solar Park Initiatives, has increased our ability to attract additional commercial projects. We believe this will ultimately lead to an increase in completed commercial projects, expansion of our geographic footprint and ultimately improve shareholder value."

2009 Operational Highlights

    --  The Company announced that it will be spinning-off Solar Park
        Initiatives, Inc., its wholly owned solar park company.
        o Solar Park Initiatives will focus on developing large utility-scale
          solar parks. Under this arrangement the new company will manage a
          previously announced West Texas solar park project (estimated to be
          over 300 megawatts) while pursuing other solar park projects currently
          under evaluation by SNRY.
    --  Solar Energy Initiatives signed a $6 million turn-key contract with a
        Northeast U.S. municipality.
        o This project is expected to begin in late October, 2009.
    --  SNRY formed a partnership with three Jacksonville job training and
        placement agencies to train displaced workers as solar energy
        installation and maintenance technicians.
        o The program is expected to be funded in part by federal stimulus
          dollars provided by the American Recovery and Reinvestment Act of
          2009.
    --  The Company announced letters of intent with several municipalities in
        various locations in the United States to install and operate
        approximately 4 megawatts (MW) of photovoltaic (PV) systems on
        government buildings.
        o Management anticipates that the projects will be completed by the
          second quarter of fiscal 2010.

2009 Year End Financial Results

Revenue for the year ended July 31, 2009 was $3.8 million, compared to $0 revenue for the period ended July 31, 2008. Gross Profit for the year ended July 31, 2009 was $800,000. There was no Gross Profit for the same period ended July 31, 2008.

Operating loss for the year ended July 31, 2009 was $2.7 million, an increase of 68% compared to $1.6 million for the fiscal year ended July 31, 2008. Loss per share was $0.21 per share for the 12 month period ended July 31, 2009 compared to a loss of $0.15 per share for the comparable period ended in 2008. The increase in net loss can be attributed to an increase in cash based management fees and salaries, consulting fees and legal and professional fees, and stock based compensation expenses.

Selling, general and administrative expenses totaled $3.5 million for the year ended July 31, 2009, compared with $1.6 for the same period 2008, an increase of 119%. These results are consistent with the Company's transition from a developmental stage company to a revenue generating company.

As of July 31, 2009, Solar Energy Initiatives had total assets of $3.1 million an increase of 675% compared to total assets of $400,000 at July 31, 2008.

"Management is encouraged with the significant strides that the company has made in its first year of business," continued, Mr. Fann. "We believe that our growth from a developmental stage business to a rapidly emerging solar company will persist throughout the foreseeable future as we continue to expand our already impressive pipeline. Management is excited with the amount of new business inquiries and the upward trajectory of the company. Our dealer network continues to expand as we expect to achieve positive cash flow status in the coming quarter. We remain focused on achieving our ultimate goals of becoming the market leader within the solar energy market, expanding market presence and increasing earnings."

Conference Call

As a reminder, Solar Energy Initiatives will host a conference call on Thursday, October 29, 2009 at 4:15 p.m. Eastern Daylight Time to discuss the Company's financial and operational results for the Fourth Quarter and Year End 2009. During the call management will discuss the company's $100 million pipeline and the spin-off of Solar Park Initiatives.

The conference call will take place on October 29, 2009 at 4:15 pm (EDT). If calling within the United States please dial 1-888-549-7742 or if calling internationally, please dial 1-480-629-9857 approximately 5 to 10 minutes prior to 4:15 pm (EDT) start time. Participants should ask for the Solar Energy Initiatives Fourth Quarter and Year End 2009 Financial Results conference call. There will be a playback available until November 05, 2009. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use the pass code 4176848 for replay.

A live audio webcast of the conference call will also be available at www.solarenergy.com.

About Solar Energy Initiatives, Inc.

Solar Energy Initiatives, Inc. (www.SolarEnergy.com) is executing its "RENEW THE NATION" campaign, intended to promote job growth nationwide via an aggressive grass roots effort. The main focus of RENEW THE NATION will be working with companies in the construction industry and related trades affected by the economic downturn to re-train and re-deploy their workforce into solar dealers, allowing this important national asset to meet the needs of the Solar Energy industry, the fastest growing industry in the world. We are executing on a multi-pronged approach to achieve our plan. This includes: continuing development of one of the fastest growing dealer networks in the U.S. that sells and installs solar solutions to homeowners and commercial customers; solar education and technical training to the private and public sectors, placing solar systems on large commercial buildings and selling the energy output to the owner/occupant(s) through Solar Power Purchase Agreements (PPAs); and becoming a developer of solar parks bringing together landowners, utilities and our corporate resources to build large photovoltaic installations.

The Company's dealer network of solar energy installers has access to Canadian Solar (NASDAQ: CSIQ), BP Solar (NYSE:BP) , GE Solar (NYSE:GE) and Suntech (NYSE:STP) equipment via its distribution agreements. While Solar Energy Initiatives is not a solar franchise, and the Company does not compete directly with industry giants such as First Solar (NASDAQ:FSLR), Kyocera (NYSE:KYO), or Sanyo (OTC:SANYY), or as a system integrator, it provides exciting and practical solutions to businesses and individuals worldwide that understand the value of solar power.

    Source: Solar Energy Initiatives, Inc.

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