Titan Energy Reports Record Service Revenues in December, 2011 Service Sales to Surpass 2010 by More Than 20%
MINNEAPOLIS, Jan. 11, 2012 /PRNewswire via COMTEX/ -- Titan Energy Worldwide, Inc. (OTC:TEWI), a leader in distributed power generation products and intelligent energy management services, announced today that it expects to exceed $480,000 in service revenues for the month of December, a record for the Company. The service business provides the Company with recurring revenues from one- to five-year contracts with industrial and commercial customers. The Company projects that annual service revenues in 2011 will top 2010 results by more than 20%.
The growth in 2011 has been supported by strong revenues from contracts with major national retailers, which in December contributed $98,000, or 20%, of the total service sales revenue. Titan began its national accounts service business in February of this year, and Management expects revenues from national accounts to grow significantly in 2012.
"We are reaching new records every month in service revenues, a trend that I believe will continue long into 2012. Our goal is to have high margin, recurring service revenues account for 50% of the Company's total revenues, which we believe will put the company on a solid cash flow basis and allow us to achieve profitability. Right now service sales comprise 35% of total revenues, an increase from 30% in 2010. So we are moving steadily and aggressively toward our goal," stated Jeffrey Flannery, Chief Executive Officer for Titan Energy Worldwide.
Titan provides regular and specialized maintenance programs for customers who purchase onsite power generation equipment from the Company, and for any industrial or commercial customer that has a standby power system. With Titan's remote monitoring capabilities, service technicians have 24/7 access to a generator's operational status and can thereby respond proactively to a service condition or provide maintenance procedures remotely. The results are lower service costs for the customer, improved performance of the onsite power equipment and greater reliability in times of emergency.
Stated Kyle Gillett, Director of Service Operations for Titan Energy Worldwide, "Our service programs for onsite power generation are supported by a superb team of professionals who are committed to making this program the finest in the United States. I believe we are one of the few service companies in the U.S. that can offer complete maintenance and repair to customers anywhere in the 50 states. Aside from our established service operations in the Midwest, Northeast and Florida, we have developed a reliable network of qualified service partners which has helped us support customers who have facilities throughout the nation."
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