Sunsi Energies (PINK:SSIE)

NEW YORK, Jan. 18, 2012 (GLOBE NEWSWIRE) -- SunSi Energies Inc. ("SunSi") (OTCQB:SSIE), a provider of the specialty chemical trichlorosilane ("TCS") to the solar industry, today announced its operating results for its second fiscal quarter and six months ended November 30, 2011. Revenue totaled approximately $3.6 million and $13.8 million for the three and six month periods ended November 30, 2011. SunSi did not record any revenue for the comparable periods in the prior fiscal year.

The loss from operations before income taxes and non-controlling interests was $839,886 for the second quarter ended November 30, 2011, compared to a loss of $231,713 for the second quarter ended November 30, 2010. The loss from operations before income taxes and non-controlling interests was $495,648 for the six month period ended November 30, 2011, compared to a loss of $390,109 for the corresponding six month period ended November 30, 2010.

TCS Market

During the fiscal quarter ended November 30, 2011, the polysilicon industry responsible for supplying the solar industry experienced a large downturn in global production due to an oversupply of polysilicon and subsequent price decline in solar modules. TCS, the specialty chemical produced by SunSi, is an essential raw material necessary to manufacture polysilicon. It represents on average approximately 20% of the cost of a kilogram of polysilicon. TCS prices and order volume remained relatively strong against declining polysilicon prices from January 2011 through August 2011. However, in the Company's second fiscal quarter ended November 30, 2011, a subsequent oversupply of polysilicon caused a continued decline in the price of polysilicon, forcing many polysilicon plants to temporarily shut down, which in turn, significantly effected TCS pricing and order volume.

As a result of these unexpected price declines and the reduced number of orders for TCS, a portion of which was cyclical, the Company experienced a significant sequential reduction in revenues compared to the previous six months. Management notes that since the start of the 2012 calendar year, the polysilicon market has shown some preliminary signs of stabilization.

Change of Fiscal Year-End, Guidance

Effective December 2011, SunSi formally changed its fiscal year-end from May 31 to December 31. The Company will file a transitional Form 10-K for the period ended December 31, 2011 and will begin to report earnings on a calendar quarter basis commencing with the quarter ending March 31, 2012.

As a result of the market conditions and change in its fiscal year described above, the Company has withdrawn its guidance previously issued on September 20, 2011 for the fiscal year ending May 31, 2012. As visibility further improves, SunSi plans to issue new guidance in April 2012, for calendar year 2012 which corresponds to its new year-end of December 31.

First Quarter 2012 Results

• Revenue totaled approximately $10.3 million for the first quarter ended August 31, 2011. SunSi did not record any revenue for the first quarter ended August 31, 2010.
• Income from operations before income taxes and non-controlling interest was $344,238 for the first quarter ended August 31, 2011, compared to a loss of ($158,396) for the same period ended August 31, 2010.

David Natan, SunSi Energies' Chief Executive Officer, said, "Despite a difficult period in the solar industry and a significant reduction in polysilicon pricing worldwide, we continue to execute our business plan and position ourselves for future growth. We believe our low cost structure in China, lean corporate overhead in the U.S., the diversification of our business outside of China and our future expansion plans, will give us a competitive advantage in the segment of the solar industry in which we operate."

Richard St-Julien, SunSi Energies' Chairman of the Board, stated, "We are starting to gain traction in the TCS industry as more and more polysilicon makers become aware of our capability to deliver a high quality product anywhere in the world at a competitive price. We remain solidly focused on growing SunSi's business and delivering shareholder value."

NEW YORK, Feb. 24, 2011 (GLOBE NEWSWIRE) -- SunSi Energies, Inc. today announced that it is nearing completion of the acquisition of a 60% ownership interest in the Wendeng He Xie Silicon Co. Ltd. ("Wendeng") trichlorosilane (TCS) facility located in Weihai, China. Previously, the Company had announced on November 30, 2010 that it had signed a definitive agreement to purchase Wendeng. The Company has completed its due diligence on Wendeng and expects to receive the final business license necessary to close the transaction within the next few weeks. 

David Natan, SunSi's Chief Executive Officer, stated, "We are very encouraged with the progress that we've made to date on the Wendeng acquisition. Our due diligence process has substantiated our expectations about Wendeng, its excellent management team and its high quality TCS currently being sold to billion dollar entities at very favorable operating margins."

Additionally, the Company announced today that the sole shareholder of the Wendeng facility has agreed to accept in excess of 50% of the purchase price of Wendeng in SunSi common shares. This shareholder has agreed to defer a significant portion of the remaining cash purchase price for six months.  Under the terms of this agreement, SunSi will pay approximately $450,000 to consummate the Wendeng acquisition.