“Going into 2010, we believe that Octus has strong momentum with the ever-expanding market opportunity for smart energy solutions, in concert with our recently-announced reserve equity financing facility with AGS Capital,” said Octus CEO Chris Soderquist.
2010 Financial Guidance
On December 16, 2009, Octus announced it secured four smart energy projects in collaboration with Quantum Energy Solutions, Inc. Octus and Quantum have developed a pipeline of more than $20 million in potential projects. In addition Octus anticipates its Smart Energy Products business will initiate sales in the first quarter of 2010 with the Smart Energy Platform ("Octus SEP"), a proprietary smart energy efficiency networking platform providing commercial building managers with critical information needed to significantly reduce overall energy use and costs, and Wickool, a proprietary Octus product that has successfully completed product design testing with two of the largest retailers and currently is in manufacturing.
- Smart Energy PRODUCTS: Integrated, intelligent controls, sensors, energy management appliances. Estimated gross margins: 60-75%; Availability:
- Smart Energy PROJECTS: Energy-efficient lighting, HVAC, energy management and renewable energy projects; utility company programs. Estimated gross margins: 30-40%; Availability:
- Smart Energy SERVICES: Software-enabled energy management services; networked energy intelligence and analytics. Anticipated approximate gross margins: 90%; Expected availability:
Smart Energy Industry Drivers
- Government stimulus: $37 billion for smart energy
- Save money: $50 billion annual opportunity (lighting and HVAC energy savings)
- Electricity prices: Increased escalation equals increasing demand
- Rebates and incentives: Utility companies assist in distribution of Smart Energy Products and the execution of projects
- Smart grid development/
1. Strengthen platform: Acquire energy service and smart energy product companies, diversify products, deliver software-enabled services
2. Expand distribution:
3. Engage key partners and catalysts: Utilities, project financing, national HVAC and electrical contractors.
4. Monetize energy intelligence/
Forward Looking Statements
This press release contains forward-looking statements, including, without limitation, statements as to financial projections and management's beliefs, expectations, goals and opinions. The company does not undertake to update or revise these statements, which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their effects on the company may not be those anticipated, and actual results may differ materially from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute to such material differences are discussed in the company's annual report on Form 10-K for the year ended December 31, 2008, and in company’s quarterly report on Form 10-Q for the quarter ended September 30, 2009, filed by the company with the Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings. In addition, this press release contains a number of forward-looking statements concerning anticipated operations for 2010. The company has only recently become engaged in the smart energy business and does not have a history of operations on which future results can be based.
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Octus, Inc. (OTCBB: OCTI.OB) is a leading smart energy company providing innovative solutions that significantly improve energy management and reduce electricity costs. Our purpose is to make buildings smart and reduce energy consumption by 50% or more. We accomplish this through the Octus Smart Energy Platform (OctusSEP), a portfolio of smart devices, sensors, network appliances and software-enabled energy management services, and the implementation of smart energy projects, targeting a $50 billion U.S. market. Commercialization of OctusSEP is propelled through affiliations with leading energy institutions, including the California Lighting Technology Center and the Western Cooling Efficiency Center.