Includes write-off of $8.0 million in non-cash tax assets
Victoria, British Columbia CANADA, February 07, 2012 /FSC/ - Carmanah Technologies Corporation (CMH - TSX), today announced preliminary unaudited revenue guidance of $35.9 million for fiscal year ended 2011, reflecting an increase of 5.8% versus prior year results. In addition, the Company will write off capitalized non-cash tax assets totaling approximately $8.0 million, reflecting a non-cash charge as at year end December 31, 2011. The tax assets relate to $4.0 million in investment tax credits and $4.0 million in deferred income taxes. The decision to write-off the non-cash tax assets was made following a review of their carrying value in comparison to a number of factors including Carmanah's early stage of development, the Company's current and anticipated revenue stream and its historical net income results. As a result of this current period analysis, management concluded that it was no longer appropriate to recognize these assets.
Complete fiscal year ended 2011 audited financial results will be released on March 16, 2012.
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH". For more information, visit www.carmanah.com.
For further information:
Investor Relations: Public Relations:
Roland Sartorius, CFO David Davies
Toll-Free: 1.877.722.8877 Tel: +1.250.382.4332
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "intends," "believes," "could," "might," "will" or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. For additional information on these risks and uncertainties, see Carmanah's most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company's website at www.carmanah.com. The risk factors identified in Carmanah's AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.
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