CTW Bluescout Technologies Ltd.

MANASSAS, VA, May 2 /CNW/ -- MANASSAS, VA, May 2 /CNW/ - Catch the Wind Ltd. (TSX-V: CTW), providers of feed-forward, intelligent turbine performance improvement systems that deliver increased energy output and reduced equipment stress loads for utility scale wind turbine generators, today reported its financial results for the three- and 12-month periods ended December 31, 2010.  All figures are in U.S. dollars unless otherwise stated. "In 2010, we experienced considerable achievement and progress," said Phil Rogers, President and CEO of Catch the Wind. "Against a backdrop of market uncertainty, we accelerated our path towards market adoption by signing a number of sales agreements with various members of the wind industry. Among our customer wins were a global turbine manufacturer, two large wind farm owners and operators, and AXYS Technologies, a leading provider of remote environmental data acquisition, processing, and telemetry systems. "As a result of our access to world-class engineering talent, we also enhanced the capabilities of our Vindicator unit while reducing our production cost through new a product configuration." Mr. Rogers added, "We have sustained this forward momentum over the past several months through a growing sales pipeline and confirmation from customer trial program results that the Vindicator's look-ahead measurement and turbine control capabilities can increase energy output in excess of 20 percent through better turbine alignment with the wind.  Our progress to date effectively positions us for a breakout year in 2011." Selected 2010 Financial and Operational Highlights -- Signed an exclusive multi-million dollar distribution agreement with AXYS Technologies with a minimum purchase commitment of 47 Vindicator(®) laser wind sensor (LWS) units. AXYS will bundle the Vindicator(®) LWS units with its floating platforms and sell the combined products for maritime wind resource assessment applications. -- Signed a sales agreement with BP Wind Energy, a leading owner and operator of wind power facilities with over 1,200 MW in commercial operation in the United States. -- Signed a sales agreement with enXco, a leading company that develops, constructs, operates and manages renewable energy projects throughout North America. -- Signed an agreement with GL Renewables Certification, an independent certification body for renewable energies, to certify safety and performance of the Company's Vindicator(®) LWS. The receipt of the certification is expected to accelerate the Company's sales cycle. -- Re-domesticated the Company to the Cayman Islands. The re-domestication was initiated for the purpose of achieving greater flexibility in potential future financings, and was not completed for any tax reason. -- Removed the ".S" designation from the Company's ticker symbol on the TSX Venture Exchange, resulting in the new symbol "CTW". -- Entered into a sales agreement with one of the world's leading manufacturers of wind turbines for the purchase of a unit of the Company's Vindicator® LWS. -- Launched Racer's Edge® LWS, the world's first hand-held device that provides accurate wind speed and direction measurement data for use in sailing, boating and other sporting events where knowledge of wind conditions is a contributing factor to performance. -- Named an Official Supplier of BMW ORACLE Racing, the winner of the 33rd America's Cup Match, held February 2010 in Valencia, Spain. -- Appointed Robin Roge, CPA, as acting Chief Financial Officer of the Company. Ms. Roge has more than 25 years of accounting and financial reporting experience, working with a number of public and private companies. Highlights Subsequent to Year-end -- Announced that the Company's exclusive licensing partner for maritime applications, AXYS Technologies, sold two units of the WindSentinel™ buoy, a custom marine floating platform bundled with a Vindicator® LWS unit. -- Presented a summary report of data collected to date from its Vindicator® LWS field trials at the European Wind Energy Association 2011 Annual Event in Brussels, Belgium. Specific energy output data collected over a span of 11 months indicated that the Vindicator® LWS consistently generated 14% increased energy output as compared to periods when the legacy wind direction inputs were utilized, with optimization experiments showing increased energy output in excess of 20%. -- Announced the reduction of the production costs for the Vindicator® LWS by approximately 50% and the significant improvement in the ease of its installation and serviceability. Financial Performance Catch the Wind recognized revenue of $500,000 for the quarter and $507,500 for the 12-month period ended December 31, 2010, both record results for each respective period. Catch the Wind generates revenue from the sale and rental of its laser wind sensing technologies. In 2009, the Company operated as an early stage development company and netted its cash receipts from product sales, which totaled approximately $283,000 for the year, against project development costs. Catch the Wind continued to operate as an early stage company focused on the development of its wind sensor products through the first six months of 2010. Operating expenses for Q4 2010 were $5.6 million, up from $4.2 million for the corresponding period of last year.  The increase in expenses is chiefly due to the growth of the Company and the accounting treatment of certain items that took effect when the Company became a commercial enterprise in July 2010.  Consistent with generally accepted accounting principles, these items, which included research and development expenses of $1.1 million and  amortization of intangible assets of approximately $335,000, were expensed. On a 12-month basis, operating expenses totaled $17.4 million for 2010 and $11.6 million for 2009. The increase in expenses is again due, in part, to the accounting treatment of certain items, including research and development expenses of $2.1 million and amortization of intangible assets of approximately $725,000.  The growth in operating expenses was also attributable to cost of sales of $1.1 million.  The increase in operating expenses was partially offset by a reduction in inventory write-down charges of $2.2 million. Operating expenses include cost of sales and customer support, salaries and benefits, general and administrative expenses, professional fees as well as professional engineering fees associated with the development of the Company's Vindicator(®) LWS. Consistent with its capital optimization plan, the Company amended its engineering services agreement with Optical Air Data Systems, LLC to provide for a fixed price component. The Company has also recently announced that it has reduced the production costs for the Vindicator(®) LWS by as much as 50%. The cost reduction results from a new production configuration achieved as a result of the knowledge gained from customer field trials conducted over the past 18 months as well as the transfer back to the Vindicator® LWS of the miniaturization developed previously for Company's hand-held wind sensing device, Racer's Edge(® )LWS.  The new product configuration also significantly improves the ease of installation and serviceability of the Vindicator® LWS units. Catch the Wind recorded a net loss for Q4 2010 of $5.1 million or $0.08 per share.  These compare to a net loss of $4.2 million, or $0.08 per share, for the same period of 2009. Catch the Wind recorded a net loss for 2010 of $16.9 million or $0.29 per share, compared to a net loss $11.6 million or $0.24 per share for 2009. At December 31, 2010, Catch the Wind had working capital of $6.9 million, including cash and cash equivalents of $6.7 million, compared to $10.1 million and $10.6 million, respectively, for 2009. Catch the Wind has filed its financial statements for the three months and year ended December 31, 2010 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities.  Catch the Wind's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.catchthewindinc.com. Conference Call Catch the Wind will host a conference call to discuss its 2010 year-end financial results on Tuesday, May 3, 2011 at 10:00 a.m. EST. To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191.  Please connect approximately 15 minutes prior to the beginning of the call to ensure participation.  A question and answer session for analysts and institutional investors will follow management's presentation. A live audio webcast of the conference call will be available at www.catchthewindinc.com . Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web site for 30 days. A taped rebroadcast will be available to listeners until 12 a.m. ET on Tuesday, May 10, 2011. To access the rebroadcast, please dial 416-849-0833 or 1-800-642-1687 and enter passcode 58421924, followed by the number sign. About Catch the Wind Ltd. Catch the Wind Ltd. is a high-growth technology company headquartered in Manassas, Virginia. The company was founded in 2008 to develop and manufacture the Vindicator® laser wind sensor. Catch the Wind serves the commercial market sector for laser based wind sensor systems, recognized as the "gold standard" in wind measurement. The company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, visit www.catchthewindinc.com. Forward-Looking Information This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, 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. Catch the Wind Ltd. Consolidated Balance Sheets As at December 31, 2010 2009 (Expressed in United States $ $ dollars) Assets Current assets: Cash and cash 10,616,065 equivalents 6,746,467 Accounts 119,627 receivable 202,157 Inventory 1,667,997 2,605,224 Prepaid expenses 107,719 and other assets 228,262 12,511,408 9,782,110 Capital assets 6,486,358 5,659,422 Other intangible 5,889,286 assets 5,971,545 Deposits 77,045 81,109 Total assets 24,964,097 21,494,186 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued 2,074,698 1,339,905 liabilities Due to related 355,685 party 74,388 Obligations under capital leases - 194,582 179,633 current portion Long-term debt - 166,213 current portion 178,530 Deferred revenue and customer 333,500 360,000 deposits 2,401,436 2,855,698 Obligations under 218,026 capital leases 41,987 Long-term debt 4,394,057 4,215,527 Total liabilities 7,013,519 7,113,212 Non-controlling 182,913 interest 86,983 Shareholders' Equity Capital stock 5,488 8,049 Contributed 31,572,347 surplus 42,842,699 Warrants 2,131,711 - Deficit (13,810,170) (30,688,468) Total shareholders' 17,767,665 equity 14,293,991 Total liabilities and shareholders' 21,494,186 24,964,097 equity   Catch the Wind Ltd. Consolidated Statements of Loss, Comprehensive Loss and Deficit For the years ended December 31, 2010 2009 (Expressed in United States dollars) $ $ Revenue 507,500 - Expenses: Cost of sales 1,133,127 - Salaries and 2,912,748 benefits 3,302,996 General and 1,356,760 administrative 2,479,542 Inventory writedown - beta 1,836,333 4,016,127 units Capital assets writedown- 149,000 - Racer's Edge Amortization of other intangible 725,400 - assets Amortization of 322,434 capital assets 859,924 Sales and 254,648 marketing 417,401 Consulting fees 389,687 723,921 Professional fees 574,666 1,509,761 Professional engineering 2,273,902 1,828,059 fees Research and 111,394 development 2,084,076 Interest expense, 91,719 long-term debt 322,062 Interest expense, 50,112 leases 52,173 Interest income (95,217) (17,832) Other income, net (18,550) - Foreign exchange (109,459) gain (82,611) 17,750,625 11,703,678 Loss before non-controlling interest (17,243,125) (11,703,678) Non-controlling (124,904) interest (364,827) Net loss and comprehensive loss (16,878,298) (11,578,774) Deficit - Beginning of year (13,810,170) (2,231,396) Deficit - End of year (30,688,468) (13,810,170) Net loss per common share - basic and diluted (0.29) (0.24) Weighted average number of common shares outstanding 48,441,552 58,798,384             To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/02/c8586.html table valign="top" border="0" tr td valign="top" align="left" Catch the Wind Ltd.      /td td The Equicom Group /td /tr tr td valign="top" align="left" Claudia Jaques      /td td Joe Racanelli /td /tr tr td valign="top" align="left" Vice President and General Counsel /td td Investor Relations /td /tr tr td valign="top" align="left" 703-393-0754       /td td 416-815-0700 ext. 243 /td /tr tr td valign="top" align="left" a href="mailto:cjaques@catchthewindinc.com"cjaques@catchthewindinc.com/a     /td td a href="mailto:jracanelli@equicomgroup.com"jracanelli@equicomgroup.com/a /td /tr /table

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