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May 15, 2007
Dear Shareholder:
As part of our continued effort to improve communication with our shareholders and the public, I plan to provide quarterly letters to be published along with our quarterly financial report and post this information on our corporate website in our investor section.
It is very exciting to be leading our management team through the transition
from a research and development company into a diversified operating company
with what I believe is a very bright future. I believe that the first
quarter of 2007 has demonstrated this transition and the remainder of
2007 shows excellent promise with in excess of an additional $5.7 million
of further booked sales slated for delivery. With these orders, 2007 annual
sales will amount to a minimum of $9 million, not including other potential
opportunities currently in process.
First Quarter 2007 Results
Revenues for the first quarter 2007 were $3,326,845 compared to the $235,143 for the first quarter of 2006, constituting a 1315% increase over the same period last year. The Company reported a net loss of $384,915 in the first quarter of 2007 compared with the loss of $1,372,211 in the first quarter of 2006. It is important to note that on a cash basis, the company had net income of $854,773. A non cash stock based expense of $776,271 contributed to the net loss this most recent quarter as we were required to expense the fair value cost of option grants according to accounting rule FAS123R (stock based compensation) in the period they vest.
While our first quarter results demonstrated significantly improved financial
performance over 2006, I believe this is just the beginning. Our highly
motivated management team has being given its mandate and will continue
to drive for customer satisfaction and business diversification to deliver
on our 2007 business plan along with solid performance to our shareholders.
I am very pleased with our revenue and gross margin performance to start
the year, and look forward to executing on the opportunities in front
of us.
Yours Very Truly,
David J. Johnson
President - CEO
Environmental Solutions Worldwide Inc
Safe Harbor
Any forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (The “Act”) including such words
preceding discussion such as “pleased” “plan,”
“confident that,” “believe,” “expect,”
or “intend to,” and similar conditional expressions are intended
to identify forward looking statements within the meaning of the Act and
are subject to the safe harbor created by the Act. Such statements are
subject to certain risks and uncertainties and actual results could differ
materially from those expressed in any of the forward-looking statements.
