Powin Corporation (OTCQB: PWON), a Tualatin, Oregon-based OEM and direct manufacturer for some of America’s best-known wholesalers and retailers, including Walmart, Freightliner, LiteSolar and Camp-Chief, today announced financial results for the third quarter of 2011 and the nine months ended September 30, 2011.
For the three-month period ending September 30, 2011, Powin’s consolidated gross profit totaled $1.07 million, a decrease of $655 thousand compared to the third quarter of 2010. Gross profits for the nine months ending September 30, 2011 decreased $472 thousand compared to the same 2010 period.
For the period July 1, 2011 to September 30, 2011, Powin reported net revenues of $10.37 million, a decrease of $4.7 million, or 31.3%, compared to the same period in 2010. The decrease is attributable to the company’s OEM segment, where one client’s loss of a national retail customer resulted in a net decrease in revenues of $4.8 million, or 35.1% for the OEM segment when compared to the same period in 2010.
“We are rebounding from our client’s loss of a major retail customer, for whom it was a leading supplier of fitness items that are clearly a discretionary purchase in this economy,” said Ronald Horne, CFO of Powin Corporation. “We are pleased to report that this same customer has issued current purchase orders surpassing those issued in the same current period in 2010, and that we secured $381,000 in new OEM customer sales in the third quarter.”The OEM revenue losses were also offset in part by strong results from the QBF segment, which had an increase of $242 thousand, or 20.3%, in net revenues compared to the third quarter of 2011 and an increase of $920 thousand, or 30.6%, for the nine months ended September 30, 2011. The company is also investing in several promising growth opportunities that are expected to boost 4 th quarter and 2012 results. For instance, the new Powin Energy segment ( www.powinenergy.com) achieved several milestones in the third quarter and is now poised to take advantage of the burgeoning market for energy storage solutions, battery technology and renewable energy products.
- In August, Powin Energy finalized an agreement with Affiliated Distributors, giving the company access to hundreds electrical distributors in more than 1500 branch offices in the U.S. and Canada.
- In September, Powin Energy received its first significant purchase order for $400,000 of lithium rechargeable batteries from LiteSolar.
- In the third quarter, Powin Energy helped Powin’s QBF manufacturing segment secure nearly $750,000 in new orders for renewable energy parts and products from LiteSolar.
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