VIASPACE Inc. announced today its financial results for the first quarter ended March 31, 2011. Revenues for first quarter 2011 totaled $582,000, which included $534,000 from subsidiary Inter-Pacific Arts (IPA), while cost of revenues was $461,000. Gross profit for the quarter was reported at $121,000. Net loss for the first quarter 2011 was $762,000, less than $0.01 per share.
Commenting on the results, VIASPACE Chief Executive Dr. Carl Kukkonen stated, “We reiterate our revenue guidance for IPA for the first-half of 2011. Previously, we announced that revenues for first-half of 2011 would be at least $2.76 million compared with $1.38 million in 2010, a 100% increase from prior year. Revenues for IPA for the second-quarter are forecasted to be at least $2.23 million. The business economy for our US retail customers is improving, and their satisfaction with our pricing and high-quality products is leading to significant new orders. Between April 1 and May 10, we shipped 16 containers of framed art to customers in the US. The factory is very busy and I am confident we will reach the target for the first-half of 2011.”
“Our strong focus for growth remains on Giant King Grass with its high yield and low cost which we believe will play an important role in the global biomass electricity and biofuels future. We are pursuing a large Giant King Grass pellet mill in the Dominican Republic, and power plant opportunities in China and Southeast Asia with DP CleanTech, a world leader in biomass power plants operating 20 biomass power plants in China and 30 in Europe. Recent testing by three companies has confirmed that Giant King Grass is an excellent feedstock for cellulosic biofuels such as ethanol and butanol as well as for biochemicals and bio plastics.”
Kukkonen added, “I am also pleased to announce that our largest shareholder, director and President of VIASPACE Green Energy, Mr. Sung Chang, has agreed to a one-year extension of the first payment due to him under the promissory note related to our acquisition of IPA. Sung is committed to the success of VIASPACE and we are both working together to build value for all of VIASPACE shareholders.”
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