Microfield Group Reports Correction to Gain on Sale of Discontinued Operations
PORTLAND, OR –(BUSINESS WIRE)– Microfield Group, Inc. (”Microfield”) (OTCBB: MICG - News) announced today that it has corrected the reported gain on the sale of its discontinued operations. The company reported a corrected gain of $135,000 on the divestiture of Christenson Electric, Inc. (“CEI”). The company previously reported the gain at $1,785,000.
An error was made in the characterization of cash transferred within Microfield. Funds were transferred from CEI to Microfield and its other wholly owned subsidiary EnergyConnect, Inc. prior to the closing of the sale. By action of the purchase agreement, these internal advances by CEI reduced the total purchase price, and therefore the cash component to be paid at closing by the purchaser of CEI. This mischaracterization resulted in an over-recognition of the gain on the sale of CEI.
Net losses for the three and six months ended June 28, 2008 after the correction were $2,229,000 ($0.03 per share) and $4,308,000 ($0.05 per share), respectively, compared to the previously reported net losses for the three and six months ended June 28, 2008 of $579,000 ($0.01 per share) and $2,658,000 ($0.03 per share), respectively. There was no change to the company’s net loss from continuing operations.
About Microfield Group, Inc.
Microfield Group through its wholly owned subsidiary EnergyConnect, Inc., provides industry-leading Demand Response technologies and services that enable a smarter, more sustainable power grid while creating additional income for participating companies. EnergyConnect transforms energy consumers into active participants in delivering the cleanest, most efficient and lowest cost supply of electric energy available. The EnergyConnect web-based automated platform enables consumers of energy to participate in unprecedented profit opportunities in the wholesale market for electricity. For more information about this next generation technology, visit: www.energyconnectinc.com. Microfield is headquartered in Portland, Oregon, and its common stock is traded on the OTC Bulletin Board under the symbol “MICG.” Additional information about Microfield is also available at www.microfield.com.
Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
| MICROFIELD GROUP, INC. | |||||
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($000′S)
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| June 28, | December 29, | ||||
| 2008 | 2007 | ||||
| (Unaudited) | |||||
| Cash | $ | 1,361 | $ | 759 | |
| Restricted cash | 300 | 133 | |||
| Accounts receivable | 1,929 | 1,533 | |||
| Other current assets | 557 | 552 | |||
| Discontinued operations | - | 12,666 | |||
| Total current assets | 4,147 | 15,643 | |||
| Goodwill and intangibles | 31,107 | 31,226 | |||
| Other long term assets | 336 | 246 | |||
| Discontinued operations | - | 971 | |||
| Total assets | $ | 35,590 | $ | 48,086 | |
| Accounts payable | $ | 3,657 | $ | 2,976 | |
| Bank line of credit | 117 | 118 | |||
| Other current liabilities | 143 | 123 | |||
| Discontinued operations | - | 13,549 | |||
| Total current liabilities | 3,917 | 16,766 | |||
| Long term liabilities-discontinued operations | - | 61 | |||
| Total liabilities | 3,917 | 16,827 | |||
| Shareholders’ equity | 31,673 | 31,258 | |||
| Total liabilities and shareholders’ equity | $ | 35,590 | $ | 48,086 | |
| MICROFIELD GROUP, INC. | |||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||
| ($000’s, except share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three months ended | Six months ended | ||||||||||||
| June 28, | June 30, | June 28, | June 30, | ||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| Revenue | $ | 5,063 | $ | 3,117 | $ | 12,442 | $ | 5,717 | |||||
| Cost of goods sold | 4,300 | 2,500 | 10,487 | 4,668 | |||||||||
| Gross profit | 763 | 617 | 1,955 | 1,049 | |||||||||
| Sales, general and administrative | 2,922 | 1,664 | 5,827 | 3,242 | |||||||||
| Stock-based compensation | 274 | 284 | 471 | 484 | |||||||||
| Total operating expenses | 3,196 | 1,948 | 6,298 | 3,726 | |||||||||
| Loss from operations | (2,433 | ) | (1,331 | ) | (4,343 | ) | (2,677 | ) | |||||
| Other income | 41 | 7 | 46 | 13 | |||||||||
| Loss from continuing operations | (2,392 | ) | (1,324 | ) | (4,297 | ) | (2,664 | ) | |||||
| Gain (loss) on discontinued operations |
163 |
263 |
(11 |
) |
(369 |
) |
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| Net loss | $ | (2,229 | ) | $ | (1,061 | ) | $ | (4,308 | ) | $ | (3,033 | ) | |
| Net loss per share: | |||||||||||||
| Basic and diluted | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.04 | ) | |
| Shares used in per share calculations: | |||||||||||||
| Basic and diluted | 90,392,194 | 83,012,972 | 87,569,489 | 81,453,776 | |||||||||
For further information, please contact:
Media Relations:
Kate Casolaro, kcasolaro@rasky.com, 617.443.9933 x338
or
Investor Relations:
Randy Reed, Chief Financial Officer, Microfield Group, Inc., 503.419.3580
or
Glen Akselrod, Brisol Capital, glen@bristolir.com, 905.326.1888
Posted on Friday, August 8th, 2008 - Press Releases