Legend Power Systems Announces Financial Results for the Three and Nine Months Ended June 30, 2015

VANCOUVER, Aug. 24, 2015 /CNW/ - Legend Power Systems Inc. (TSX: LPS) ("Legend" or the "the Company") today announced its unaudited financial results for the three and nine month periods ended June 30, 2015. A copy of the unaudited condensed interim consolidated financial statements for the three and nine month periods ended June 30, 2015 prepared in accordance with International Financial Reporting Standards (the "Financial Statements") and the corresponding management's discussion and analysis ("MD&A") will be available under the Company's profile on www.sedar.com. All amounts are in CAD dollars unless otherwise noted.

Q3 2015 Highlights

• At the end of the quarter, the Company has a committed order backlog exceeding $2 million;
  
  
• Sales funnel grew from $2 million to over $12 million as the new sales team developed additional territories;
  
  
• Revenue for the three months ended June 30, 2015 was $150,824 million, compared to $114,328 for the three months ended March 31, 2015;
  
  
• Gross margins were higher for the three and nine months ended June 30, 2015 as compared to the same periods the previous year and remain strong at 53.4% for the nine months ended June 30, 2015;
  
  
• During the quarter, the Company built an experienced and proven sales team. Aaron Arsenault, a successful ex-Enernoc sales executive is now our Director of Sales. Aaron has added three experienced and highly successful business development people who are based in Ontario;
  
  
• During the quarter the Company announced new customer wins, and the successful installation of a Harmonizer at our 100^th customer location.

"We are very pleased with the increasing demand for the Company's new products indicating acceptance of our technology in the market place.   In the last 30 days we have assessed over 100 customer locations alone." commented Randy Buchamer, President and CEO of the Company.  "Energy costs have increased annually by 5 percent the last few years and it is expected to continue. There is an urgent need to reduce energy costs and Legend's solutions are a strong consideration", Buchamer added.

Financial Summary

The following table is a summary of the financial information presented in the Financial Statements:                                                                         

		3 Months ended			3 Months ended			9 Months ended			9 Months ended
		June 30,			June 30,			June 30,			June 30,
		2015			2014			2015			2014
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue		$	150,824		$	210,801		$	417,817		$	809,203
Cost of sales		70,121			144,374			194,522			537,404
Gross Margin		80,703			66,427			223,295			271,799
Gross Margin %		53.5%			31.5%			53.4%			33.6%
Operating expense		632,962			445,961			2,045,552			1,347,954
Other expense (1)		58,362			34,905			190,459			91,027
Total comprehensive loss		610,621			414,439			2,012,716			1,167,182
Loss per share
	Basic and diluted	$	0.011		$	0.008		$	0.035		$	0.023
(1) includes unrealized foreign
	currency translation

Revenue

Revenue for the three months ended June 30, 2015 was $150,824. Revenue for the nine months ended June 30, 2015 was $417,817.  

Gross Margins

Gross margins for the three and nine month periods ending June 30, 2015 were 53.5% and 53.4% respectively.

Product and Customer Development

The Company continues to enhance its products with increased capabilities and feature set. The Company will soon be releasing its largest system ever, 2000 AMP's.  In addition, the Company is launching an energy "dashboard" which will display real-time product performance to bring the product from the electrical room to the executive suite.

The Company also introduced an innovative method to acquire and utilize Legend's systems without upfront capital, called ESP (Energy Saving Program).

The ESP is an innovative financial product that allows the Company's customers to leverage Legend's solutions in their buildings on a shared energy savings basis. The Company has experienced substantial interest in this innovative ESP program.

ABOUT LEGEND POWER SYSTEMS

Legend Power Systems Inc. (www.legendpower.com) is a leading electrical energy conservation company that manufactures and markets a patented device to help commercial and industrial customers achieve significant energy savings through voltage optimization. Legend's Electrical Harmonizer helps companies reduce their electricity bills, maintenance costs, and increases the life of electrical equipment, while contributing to a reduction in greenhouse gas emissions. Legend was recognized as the top performing clean tech company on the TSX/V for 2015.

SOURCE Legend Power Systems Inc.

Randy Buchamer, President & CEO, Legend Power Systems Inc., T 778-945-1501, [email protected]