Solomon Technologies, Inc. (OTC:SOLM), a developer and manufacturer of regenerative electric power drive systems and high-voltage direct current power systems, announced its 2008 third quarter operating results for the period ended September 30, 2008.
Revenue for the quarter ended September 30, 2008 was $2,376,527, an increase of 11.4% compared with the quarter ended September 30, 2007. The increase in revenue is primarily attributable to sales from the Solomon's Power Electronics Division. Gross profit for the period was $911,727 compared with the year earlier period of $972,173. The company reported a net loss for the three months ended September 30, 2008 of $1,785,130, a 67% reduction from its net loss of $5,366,547 for the three months ended September 30, 2007. The cash loss for the year to date period was $1,452,197, compared to a cash loss of $1,841,495 for the year ago period, a decrease of $389,298 or 21%.
Peter DeVecchis, President of Solomon commented, "As we continue toward our goal of achieving cash flow breakeven operations we are also focusing on increasing efficiency in our acquired operations and taking our technology and patents into new markets. Our operating loss decreased significantly in the third quarter from a year ago and we believe that trend will continue. We have nearly completed the consolidation of the Deltron acquisition into the Power Electronics Division. We are expanding our product offerings, identifying new market opportunities for our technologies and expanding our horizons in the renewable energy and alternative power market segments. Even in this difficult economy we are optimistic that our efforts will produce substantial benefits to our stockholders."
Selling, general and administrative expenses were $1,522,565 for the period as compared to $1,980,367 for the year earlier period. This decrease was primarily due to various corporate overhead and staffing reductions. Research and Development costs were $310,808 for the period as compared to $310,108 for the year ago period. Interest expense declined to $865,626 for the quarter from $1,566,812 for the year ago quarter, a decrease of $701,186 primarily due to a decrease in accrued cash and non-cash interest charges related to the variable rate self-liquidating senior secured convertible debentures sold in January and August of 2007.