MicroPlanet Sales Up 120%

    
    Company: MicroPlanet Technology Corp.
    Stock Listing: MP:TSXV
    Stock Listing (US): MCTYF: OTC
    Web Site: www.microplanet.com
    

SEATTLE , WA, Nov. 17 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a smart grid, energy conservation company today reports interim unaudited consolidated financial results for the three-month and nine-month periods ended September 30, 2009 . All dollar figures are reported in U.S. currency, unless otherwise stated.

    
    Highlights
    -   Total sales in Q3 2009 increased 120%
    -   Gross margins increased to 26%
    -   Sales backlog at $6.9 Million
    

Bruce Lisanti , Chief Executive Officer of MicroPlanet commented, "We are pleased with the third quarter performance as it demonstrates our ability to deliver our smart grid products against our sales backlog at positive margins. We expect both sales and gross margins for our products will continue to stabilize in the fourth quarter and in 2010. We believe our product delivery rate will continue to increase and product costs will decrease from volume manufacturing and product design improvements."

"The majority of third quarter sales were shipments of smart grid products destined for utilities" said Lisanti. "We are very encouraged by the adoption our products at the grid level by utility customers. Ergon Energy, a major utility and our distribution partner, is leading the sales efforts of our products in Australia and New Zealand . Several other utilities in the region are now evaluating our products for deployment on their power grids."

Lisanti continues, "As utilities worldwide actively pursue smart grid technologies, and the incorporation of renewable energy generation sources such as wind and solar power, the Company's products are well-positioned to play an important role in these large-scale smart grid deployments."

Included in third quarter sales are shipments of the commercial version of MicroPlanet products to businesses and US government agencies, such as the Department of Defense. "The Company is actively exploring these opportunities and believes that these efforts will lead to significant sales as the economy improves and customers look for opportunities to reduce costs through energy savings," said Lisanti. "Also, the Company recently received Underwriters' Laboratory approval of its new generation commercial products, which allows the Company to start shipping them for existing customer orders. The first of these new systems is scheduled to be installed in November."

Third Quarter Summary:

Sales for the three-months ended September 30, 2009 (the "Quarter") were $625,338 , up 120% compared to $283,683 during the same period in 2008 (the "Prior Year Quarter"). Sales increased 180% when compared to second quarter 2009 revenues ( April 2009 through June 2009 ) of $222,600 . Sales efforts during the Quarter were directed primarily towards increasing the backlog of orders through pilot installations of its commercial, utility and residential products.

Gross Margin for the Quarter was $165,171 , or 26.4%. The commercial three phase product also has a positive gross margin despite very low production volumes, which is expected to increase as production grows.

Expenses for the Quarter increased by 17.7% to $1,500,252 compared to $1,274,275 during the Prior Year Quarter. The majority of this increase is attributable to stock option compensation expense of $182,064 and non-operating foreign currency translation expenses of $123,273 .

Net loss for the Quarter was $1,333,938 or $0.03 loss per share (basic and diluted) compared to a net loss of $1,317,460 or $0.03 loss per share (basic and diluted) in the Prior Year Quarter.

MicroPlanet's financial information for the three-month and nine-month periods ended September 30, 2009 and 2008 along with the accompanying Management's Discussion and Analysis for the same period are available on SEDAR (www.sedar.com).

    
    Third Quarter Financial Highlights:
    Unaudited

    -------------------------------------------------------------------------
                          3-months      3-months      9-months      9-months
                             ended         ended         ended         ended
    Income Statement      Sept. 30,     Sept. 30,     Sept. 30,     Sept. 30,
    Unaudited                 2009          2008          2009          2008
    -------------------------------------------------------------------------
    Sales              $   625,338   $   283,683   $ 1,190,880   $   293,683
    -------------------------------------------------------------------------
    Gross margin       $   165,171   $   (51,098)  $   286,984   $   (53,702)
    -------------------------------------------------------------------------
    Total expenses     $ 1,500,252   $ 1,274,275   $ 3,794,978   $ 3,868,787
    -------------------------------------------------------------------------
    Net income (loss)  $(1,333,938)  $(1,317,460)  $(3,504,243)  $(3,907,606)
    -------------------------------------------------------------------------
    Basic and diluted
     earnings (loss)
     per share         $     (0.03)  $     (0.03)  $     (0.08)  $     (0.11)
    -------------------------------------------------------------------------
    Weighted
     average shares
     outstanding        41,376,890    41,010,883    41,284,208    34,404,217
    -------------------------------------------------------------------------
    

Share grant in lieu of cash compensation and option grant

The Company issued 95,732 common shares at deemed price of $0.14 per share in the Quarter to Bruce Lisanti , the Company's CEO, for a quarterly payment of US$12,500 of salary in lieu of cash. The share issuance is pursuant to an agreement to pay a portion of Mr. Lisanti 's annual salary in common shares of MicroPlanet in lieu of cash. The common shares issued are subject to a 4-month hold period in accordance with stock exchange requirements.

Share issuance in lieu of cash interest payment

Subsequent to the end of the period, the Company issued shares of the Company's stock to certain holders of the secured Convertible Notes (the "Notes") in lieu of cash for interest payments. The Notes bear interest at the rate of twelve percent (12%) per annum payable semi-annually in arrears. At the option of the Note holder, interest payments may be made in the form of common shares at an issue price equal to the market price at the time of settlement. In lieu of $85,504 cash interest payments the Company issued 657,729 common shares at deemed price of $0.13 per share to certain Note holders. The common shares issued are subject to restrictions on trading for various periods of time, with 533,109 shares having restrictions ending 19 October 2009 , 107,939 shares with restrictions ending 4 November 2009 , and 16,681 shares with restrictions ending 17 February 2010 .

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. is a smart grid, energy conservation company whose technology improves power quality and saves electric energy by the dynamic management of incoming voltage to a home or business. In commercial and residential building installations, MicroPlanet products have been proven to significantly reduce electric bills, maintenance costs and greenhouse gases. Installation of MicroPlanet products for utilities has improved utility services and facilitates the integration of renewable energy sources including solar and wind to the power grid. MicroPlanet is based in Seattle , WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. MicroPlanet's website is www.microplanet.com.

THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

%SEDAR: 00020555E

For further information: MicroPlanet Company Contacts: Bruce Lisanti, President & CEO, Tel: [phone], Fax: [phone], [email protected]; Kurt Maass, CFO, Tel: [phone], Fax: [phone], [email protected]; MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: [phone], Toll Free: 1-888-894-8222, [email protected]