Gas Turbine Efficiency plc Interim Results for the Six Months to 30 June 2006.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- Gas Turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. Efficiency plc ("GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) " or "the Company"), a leading supplier of advanced high pressure gas turbine cleaning systems for the aviation and power generation industries, announces its financial results for the six months to 30 June 2006. Financial Highlights * Total revenues were $2.1m (H1 2005: $2.3m) * Aviation revenues were $1.3m (H1: 2005: $1.0m) * Revenues from industrial sector $0.8M (H1 2005: $1.3m) * Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. amounted to $1.1m (H1 2005: $1.0m) * Basic and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share of $0.02 (H1 2005: $0.04) * Cash and cash equivalents totalled $3.5m as at 30 June 2006 (H1 2005: $0.2m) Operating Highlights * Significant progress made on OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and qualification in the industrial sector with global OEMs which is the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of GTE's long term strategy * Pratt & Whitney expanded EcoPower[TM] service to Europe and Asia hubs * Multi-year agreement signed with Siemens Industrial Turbines AB * First Middle Eastern order received * Second office opened in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State for engineering support to existing and potential partners * Set up a Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. subsidiary to target its large installed base of industrial turbines Steven Zwolinski, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of GTE, said: "We have made tremendous progress in the first half to strengthen relationships with key industrial global OEMs by focusing on completing the demanding but non-recurring process of GTE technology qualification. We are just entering the last phase of our negotiations with several global OEMs and hope to achieve necessary qualifications soon. These steps have made a positive impact on our business, leading to a strong pipeline of orders for the second half of 2006. As a result, the Company remains confident of delivering significant revenue growth for the full year 2006 and beyond." Overview GTE made considerable progress in the first half of 2006 to position itself for sustained long term growth and the steps taken during the period have already started making a positive impact on the business. The Company's systems enable gas turbine operators to achieve substantial savings in their energy costs, reduce emissions and cut maintenance downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. . Operating data from a number of gas turbine operators suggests that they are achieving better-than-expected cost efficiency in real-life working conditions - which validates the compelling benefits of our advanced high pressure systems. Our customers include global OEMs such as Pratt & Whitney, Rolls-Royce, Saab and Siemens as well as gas turbine operators such as Calpine, Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. , SNAM SNAM Saturday Night at the Movies SNAM Short Name SNAM Signaling Network Activation Manager , Statoil and TexasGenCo. Turnover decreased by 8% to $2.1m (H1 2005: $2.3m) reflecting a lower contribution from the industrial segment, partly offset by a sharp increase in sales into the aviation market. The fall in revenues was in line with the Company's expectations and its strategy, discussed below, to focus on establishing long term partnerships with global original equipment manufactures (OEMs). Operating review The Company achieved several notable milestones in the first half of 2006 as it continued to target the global market for wash systems in power generation, aviation, oil & gas and marine segments. The market opportunity available to GTE is both large and growing. The global installed base for civilian and military aircraft engines is estimated at approximately 120,000 units while the number of industrial turbines currently in use is estimated at more than 40,000 units. Aviation systems Revenues from aviation systems, where GTE is the exclusive supplier of on-wing wash systems to Pratt & Whitney's EcoPower[TM] business (PW), rose by 30% to $1m. In February 2006, the Company won a $1.3m order from PW for two complete cleaning systems for new commercial aviation hubs in Asia and Europe, taking the total number of its service hubs to five. The order reflected a planned global rollout by EcoPower[TM], which provides wash services to a wide range of aircraft fleets powered by engines manufactured by PW as well as other major OEMs. EcoPower[TM]'s first European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. hub at Schiphol airport commenced operations in July with Martinair as its launch customer. In Asia, its first hub is located in Singapore where it will serve a wide range of aircraft operators. As previously announced, in January 2006 GTE's contract with PW was extended to 2014. This contract provides a solid foundation for long term growth for the Company. GTE generates revenues under this contract from the sale of GTE equipment as well as royalties based on the number of washes carried by EcoPower[TM]. While the civil aviation market is expected to gain momentum, the Company has also targeted the military segment, where it already has a number of customers including the Swedish Air Force The Swedish Air Force (Swedish: Flygvapnet, literally "The Flight Weapon") is the air force branch of the Swedish Armed Forces, the military of Sweden. History . As a result, there has been significant increase in inquiry levels from potential military customers in the first half of the year. Industrial Revenues from the industrial segment (which includes power generation, oil & gas and marine industries) decreased to $0.8m compared with revenues of $1.3m in the corresponding period last year. However, the result was in line with the Company's expectations and its strategy to work directly with global OEMs, and the required, non-recurring process of GTE technology qualification. During the qualification period, GTE was required to de-emphasise direct sales into a significant portion of its end-customer base. Although the strategy impacted turnover in the short term, the Company strongly believes it will open up considerably larger market opportunities in the long term by providing access to the global OEMs' large installed user base. To this end, GTE is currently making excellent progress in achieving an extensive programme of product qualifications at key global OEMs in the US and Europe, which is expected to pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for long term partnership agreements. In May 2006 GTE signed a multi-year agreement with Siemens Industrial Turbines AB (SIT), part of Siemens AG Siemens AG German electrical-equipment manufacturer. The first Siemens company, Siemens & Halske, was founded in Berlin in 1847 to build telegraph installations. , to supply its cleaning systems as a standard feature of SIT's complete range of turbines. The deal strengthened an existing arrangement under which GTE's cleaning systems have been incorporated as a standard product in SIT's turbines since 1995. GTE will manufacture and supply gas turbine cleaning systems to SIT in Sweden for inclusion in its entire range of industrial turbines, as well as other future models, for shipments worldwide. The turbines are designed to deliver an output of between 17 megawatts and 43 megawatts and aimed primarily at the mid-range power generation and the oil & gas industries. New geographic markets The Company has also entered the highly promising markets in the Middle East and Russia. Both regions are attracting major investment by the international oil and gas industry. The Middle East is also investing heavily in water desalination Water desalination The removal of dissolved minerals (including salts) from seawater or brackish water. This may occur naturally as part of the hydrologic cycle, or as an engineered process. plants, which are large consumers of power. In Russia there is already a large installed base of industrial turbines. GTE is at an advanced stage of appointing a distributor in Abu Dhabi Abu Dhabi (ä`b  thä`bē, zä–, dä–), Arab. Abu Zabi, sheikhdom (1995 pop. 928,360), c. to address the Middle East market and has just received its first order from that region. In Russia, GTE has set up a new subsidiary based in St Petersburg with a sales and marketing director. Financial Review Turnover decreased by 8% to $2.1m (H1 2005: $2.3m) reflecting a lower contribution from the industrial segment, partly offset by a sharp increase in sales into the aviation market. Turnover from the eastern hemisphere Eastern Hemisphere Part of the Earth east of the Atlantic Ocean. It includes Europe, Asia, Australia, and Africa. Longitudes 20° W and 160° E are often considered its boundaries. , which covers Europe and the rest of world excluding the Americas, accounted for the majority of the sales. Operating loss amounted to $1.1m (H1 2005: $1.0m). Pre-tax loss amounted to $1.19m compared with a $0.96m loss in the corresponding period last year. Basic and fully diluted loss per share was $0.02 (H1 2005: $0.04). Cash and cash equivalents totaled $3.5m as at 30 June 2006 (H1 2005: $0.2m). Outlook During the first half of the year GTE focused on strengthening relationships with key global OEMs and on expanding into new regions. These steps have made a positive impact on our business, leading to a strong pipeline of orders for the second half of 2006. As a result, the Company remains confident of delivering significant revenue growth for the full 2006 and beyond. |
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