Watching Worldwide (WEMU.OB)
WEMU has shown good growth in share value since covering the company in April, or 74% at its 52 week high of $7.50, but has fallen back after 2Q earnings. New markets have been penetrated through solar module endorsements, such as South Korea with the IEC (International Electrotechnical Commission), the US with UL (Underwriters Laboratories), and six western states with CEC (California Energy Commission) certifications. Since then, management has and still is pursuing a formal listing with either NASDAQ or AMEX. CFO John Ballard stated in the 2Q ’09 conference call that he cannot place a time frame on when a formal listing will occur, but believes it will be “soon”.
WEMU announced second quarter revenues of $10.32 million (51% increase) and net income of $19,299 –decreased by a prior period error. The earnings can be viewed in the positive if you like to see quarterly year over year revenue growth, or otherwise if you were expecting the 2009 goal of $100 million in revenue and $3-$5 million in net income. Solar modules faced a 55% decline in value (down to $2.03 per module), which in turn decreased revenues for the company. The new 2009 guidance given by management is 60 million in revenues and .56 earnings per share (roughly a $2 million net income) based on backlogged revenues. Read more…