AAER Q2 loss widens to $3.4M from $815,315 a year ago on higher expenses

Published Monday August 25th, 2008

THE CANADIAN PRESS

MONTREAL - Wind turbine manufacturer AAER Inc. (TSXV:AAE) widened its second-quarter loss to $3.4 million from $815,315 a year ago on higher expenses.

The Montreal company said the loss amounted to four cents per share compared to two cents in the same period last year.

Operating expenses increased by $2.6 million to $3.4 million when compared to $815,315 during the second quarter on 2007, due to higher salary and benefits costs as AAER added employees in preparation for the start of commercial production in the fourth quarter, as well as higher rent and marketing expenses.

The company has not generated any revenue as of June 30.

"During the second quarter of 2008 we began to execute on our strategy of selling wind turbines to small-to-medium sized wind projects in the one-to 50-megawatt range," said CEO Dave Gagnon.

"We believe this niche market is currently undeserved by the large OEM's and represents a major growth opportunity for AAER."

AEER shares traded at 20.5 cents on the TSX Venture Exchange, down a penny or almost five per cent.

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