AgriSolar Solutions (OTCBB: AGSO) recently announced that it would be opening several sales and distribution offices in Europe for the purpose of introducing its solar powered insect elimination systems to the market. These systems will be rolled out for use on farms, orchards and vineyards.
Based in Colorado, AgriSolar Solutions manufactures and distributes an eco-friendly pesticide-free insect elimination system, with the goal of making pesticides obsolete. Insect control is a $70 billion industry worldwide, with the most inexpensive chemical insecticides costing approximately nine dollars per acre per month. Organic insecticides, while being more eco-friendly than non-organic insecticides, average at sixty dollars per acre per month. Conversely, the AgriSolar insect control system costs one dollar per acre per year.
While AgriSolar has a foothold in the Chinese market, European legislation known as the Pesticides Framework Directive dictates the sustainable use of pesticides, aiming to reduce the impact of pesticides on human health. In this area, AgriSolar has seen exceptional growth during recent periods.
Revenue for the three-month period ending June 30, 2011, was $5.6 million, a 147% increase from the previous quarter that ended in March 2011, and a 90% increase on a year-over-year quarterly basis. Gross profit increased to $1.6 million from $1.0 million during the previous year. Quarterly comprehensive income for the quarter was $423,482, or $.01 per share (basic), compared to a loss during the June 2010 quarter. Along with AgriSolar’s expansion into Europe, the company is also planning similar growth in North and South American markets.
AgriSolar’s CEO Liang Chao Wei, said, “The time is right for us to significantly expand our distribution considering the push to implement Europe’s Pesticide Framework Directive, which aims to reduce the risks and impacts of pesticides on human health. Our state-of-the-art insect control systems have seen great success in the Chinese agricultural market, which has allowed us to grow our revenues very quickly. Additionally, we have recently added a meaningful amount of additional manufacturing capability that will allow us to produce in the volumes necessary to satisfy the additional strong demand we are expecting within the European market.”
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