Burnaby, British Columbia, April 11, 2012– Legend Power Systems Inc. (“Legend Power”) (TSX-V: LPS) is pleased to provide an update on the progress of our corporate renewal journey. (Please see the recent Legend Power press releases of March 28 and 29, 2012.)
Randy Buchamer, President and COO, reports the following:
We have continued to reduce our monthly cost of operating our business. The progress chart below shows that our monthly costs have been reduced from a high of $330K in September 2010 to about $145K in April 2012. Our product costs continue to improve while we leverage best engineering practices resulting in additional gross margin.
|Month||Monthly Burn||Margins||Mo. Break Even||B/E in units||Yearly B/E $’s|
|Sept 2010||$330K||37%||$892K||16.2||$10.704 M|
|Dec 2010||$200K||37%||$541K||9.8||$ 6.492 M|
|May 2011||$160K||40%||$400K||7.3||$ 4.800 M|
|Dec 2011||$160K||45%||$355K||6.5||$ 4.260 M|
|April 2012||$145K||45%||$322K||5.9||$ 3.860 M|
As the chart illustrates, Legend Power now needs to sell approximately 5.9 units to break even and is profitable on an operating basis on sales above $ 3.9M.
We launched our sales program with a new and proven sales team in September 2011. We just concluded our first complete quarter with our new sales program and the results were very positive.
As mentioned in our March 29, 2012 release, during the first quarter of calendar year 2012, we received commitments for 25 units representing about $1,132,787 against an internal budget of $713,940 (represents a 57% over achievement to internal budget). Some of the units were shipped during the quarter and other units will be shipped during the next quarter or two. In Legend Power’s ten plus year history, the company has never come close to achieving the results obtained in the last quarter. Obtaining positive sales growth while reducing costs is a significant achievement.
We also completed a financing in March raising approximately $1.28M. We appreciate the markets’ confidence in our strategy and plans.
We are pleased but not satisfied with our continued results. The team knows our renewal journey has started strong but the road is long. We are confident that we will continue to deliver positive results and grow a strong business. The early positive results confirm that we have listened to our target markets and have presented our product in a way that our markets understand. The Company will continue to build and establish a strong brand in the Ontario market with visions of duplicating the business model later this year in other cities on the Eastern seaboard.
Thank you to all our supporters, stakeholders and committed shareholders. We will continue to work hard and smart to continue to enjoy your support.
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) is a leading electrical energy conservation company that manufactures and markets a voltage optimization solution to help commercial and industrial customers to reduce electrical energy consumption and costs. Legend Power’s Electrical Harmonizer-AVR helps companies reduce their electricity bills, maintenance costs, and increase the life of electrical equipment, while contributing to a reduction in green house gas emissions.Forward Looking Information.- This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Legend Power believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Legend Power’s management on the date such statements were made. Legend Power expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.