LIGHTSCAPE TECHNOLOGIES, INC. 
By
For the three months ended
Bondy Tan, President and CEO of Lightscape Technologies commented, "During the third quarter, we began to see increasing revenue flows from our LED business development activities undertaken during the first half of our fiscal 2008. We are pleased with the results of our business development efforts, and look forward to strengthening our overall revenue and profitability in coming quarters."
LED Lighting Solutions
Said
"During the third quarter, we fulfilled and continued work on several lighting design consultancy contracts which were secured during the first half of the fiscal year. We also actively pursued new design consultancy contracts. Securing design consultancy contracts serves as an opportunity to demonstrate our LED lighting design capabilities, creativity and technical expertise, and also fosters our relationships with the project owners. Our performance and relationships built through these design consultancy contracts strengthens our ability to secure the turnkey supply & build contracts for the projects. During the third quarter, we submitted various tender bids for design consultancy contracts, as well as for turnkey supply & build contracts."
"One of the key lighting design consultancy contracts we continued to
fulfill during the third quarter is for the interior and exterior lighting
design for a new high-end commercial, residential and hotel development
located in Dalian,
"During the third quarter, we also continued to fulfill a lighting design
consultancy contract with new high-end mixed-use development located on Huai
"In the third quarter, we continued to deliver upon an initial supply &
build contract with Hong Kong's K11
"During the third quarter, we also began work to provide LED lighting
installations for the new W Hotel
"In the third quarter, we secured a contract for the installation of an
indoor LED video wall and related hardware and software for the Renaissance
Harbour View Hotel in
"During the third quarter, we continued work under a contract for the
design and installation of a mega-sized outdoor LED panel on the pedestrian
overpass of the
"Additional contracts secured during the third quarter include a design
and build contract to provide LED lighting solutions for the outside facade
wall of
"During the third quarter, we were awarded a contract for the supply and
installation of a 1.2 meter X 1.5 meter LED screen for the Victoria
International School in
"In the third quarter, we fulfilled a contract for the supply and
installation of 36 square meters of our LED FX Glass product across the
ceiling of Hair Corner, a prominent beauty salon chain in
LED Screen Rental Service
"We recently signed our first contract for the rental of an LED screen in
LED-Based Outdoor Advertising Network in
Said
Other Initiatives
"The exposure of our state-of-the-art LED lighting solutions and products
to potential customers and strategic partners continues to gain momentum. To
carry forward this momentum, we plan to attend other prominent LED lighting
and general lighting industry conventions, including Light
"To support our sales and marketing efforts, we opened a showroom in our
Additional information regarding Lightscape Technologies' financial performance can be found in the financial tables below and in the company's Quarterly Report on Form 10-QSB.
About Lightscape Technologies
Lightscape Technologies Inc. (OTC Bulletin Board: LTSC) delivers
innovative lighting design solutions, advanced lighting products and
customized energy management solutions. Through wholly owned subsidiary
Lightscape Technologies (Greater
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe
Harbor" for forward-looking statements. This Press Release may contain, in
addition to historical information, forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These forward-looking
statements are identified by their use of terms and phrases such as "believe,"
"expect," "plan," "anticipate" and similar expressions identifying forward-
looking statements. Investors should not rely on forward-looking statements
because they are subject to a variety of risks, uncertainties and other
factors that could cause actual results to differ materially from Lightscape's
expectations, and Lightscape expressly does not undertake any duty to update
forward-looking statements. These factors include, but are not limited to,
risks in product development and market acceptance of and demand for the
company's products and services; risks of downturns in economic conditions
generally; risks of intellectual property rights associated with competition
and competitive pricing pressures; risks of foreign sales and high customer
concentration; risks related to Lightscape's and its subsidiaries' ability to
secure supply & build contracts with project developers in mainland
(financial tables to follow)
LIGHTSCAPE TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Expressed in US dollars
Three Months Ended Nine Months Ended
December 31, December 31,
2007 2006 2007 2006
$ $ $ $
Revenues:
Sale of energy saving products -- 84,950 35,688 482,596
Sale of lighting source
products 639,336 870,008 1,864,629 3,825,098
Sale and contract revenue of
lighting design solutions
- Sales 1,114,215 1,928,020 1,137,457 1,928,020
- Contract revenue 1,856,557 358,281 1,856,557 5,471,374
Rental income 5,141 -- 5,141 1,285
Commission and service income 12,150 -- 35,717 28,278
Sales-type lease income 3,510 1,947 5,160 10,498
Total net revenues 3,630,909 3,243,206 4,940,349 11,747,149
Cost of revenues:
Sale of energy saving products -- (30,603) (17,770) (405,964)
Sale of lighting source
products (444,509) (443,719)(1,292,931)(1,923,546)
Sale and contract revenue of
lighting design solutions
- Sales (940,864) (687,045)(1,028,341) (687,045)
- Contract costs (1,541,911) (146,242)(1,541,911)(3,476,466)
Rental income -- -- -- (632)
Commission and service income -- (5,182) -- (9,036)
Total cost of revenues
(2,927,284)(1,312,791)(3,880,953)(6,502,689)
Gross profit 703,625 1,930,415 1,059,396 5,244,460
Amortization of intangible
assets (180,131) (180,131) (540,393) (507,508)
Selling and marketing expenses (149,977) (185,379) (510,288) (521,490)
General and administrative
expenses (952,589) (736,715)(2,843,461)(2,421,217)
(Loss) profit from operations (579,072) 828,190 (2,834,746) 1,794,245
Interest expense (1,903) (80,130) (397,548) (247,019)
Interest income 3,620 1,208 39,083 4,467
Other income 5,440 8,184 55,899 424,630
Gain on redemption of
redeemable convertible notes
and options -- -- 194,968 --
Equity share of the result of
joint venture -- -- -- 64,710
(Loss) profit before income
tax and minority interests (571,915) 757,452 (2,942,344) 2,041,033
Income taxes -- (63,611) -- (266,415)
Net (loss) profit before
minority interests (571,915) 693,841 (2,942,344) 1,774,618
Minority interests 19,988 20,184 77,783 (166,043)
Net (loss) profit attributable
to shareholders of the
Company (551,927) 714,025 (2,864,561) 1,608,575
(Loss) profit per share
- Basic (0.01) 0.02 (0.07) 0.05
- Diluted (0.01) 0.02 (0.07) 0.05
Weighted average number of
common
shares outstanding
- Basic 44,584,019 34,799,599 40,797,592 32,991,551
- Diluted 44,584,019 34,799,599 40,797,592 32,991,551
LIGHTSCAPE TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Expressed in US dollars
December March
31, 2007 31, 2007
(Unaudited) (Audited)
$ $
ASSETS
Current assets:
Cash and cash equivalents 464,412 4,117,107
Trade receivables, net of allowance for doubtful
accounts of $413,082 on December 31, 2007 and
$413,082 on March 31, 2007 4,393,569 4,823,265
Costs and estimated earnings in excess of
billings on uncompleted contracts 892,547 --
Net investment in sales-type leases - current
portion 263,379 196,501
Prepaid expenses and other current assets 1,549,360 2,246,172
Inventories 3,849,364 1,708,020
Total current assets 11,412,631 13,091,065
Intangible assets, net 3,579,729 4,280,612
Goodwill 4,653,437 5,003,437
Plant and equipment, net 3,982,607 4,162,554
Construction in progress 1,716,938 1,715,141
Net investment in sales-type leases - non-current
portion 211,278 329,238
Other investments, net of write-off amount
of $31,516 on December 31, 2007 and $31,516 on
March 31, 2007 -- --
14,143,989 15,490,982
TOTAL ASSETS 25,556,620 28,582,047
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings 3,772 3,678
Options -- 2,619,000
Trade payables 2,725,968 2,973,388
Amount due to a director 1,451,868 39,846
Amount due to a shareholder 45,161 46,546
Accrued expenses and other current liabilities 1,113,939 1,172,812
Obligations under capital leases - current portion 1,774 1,774
Income tax payable 355,902 396,719
Total current liabilities 5,698,384 7,253,763
Non-current liabilities:
Obligations under capital leases - non-current
portion 5,765 6,947
Redeemable convertible notes -- 147,047
Total non-current liabilities 5,765 153,994
Total liabilities 5,704,149 7,407,757
Minority interest 1,788,133 1,865,916
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:
Common stock
Authorized:
800,000,000 common shares, par value $0.001 per
share
100,000,000 preferred shares, par value $0.001
per share
Issued and outstanding:
46,501,410 common shares at December 31, 2007 and
37,451,410 at March 31, 2007 46,501 37,451
Additional paid-in capital
25,773,583 24,139,333
Other reserves 28,944 28,944
Accumulated other comprehensive income 299,766 322,541
Accumulated deficit
(8,084,456)(5,219,895)
Total shareholders' equity 18,064,338 19,308,374
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 25,556,620 28,582,047
SOURCE Lightscape Technologies Inc.
