Legend Power Announces Results For First Quarter 2017

VANCOUVER, BC--(Marketwired - February 23, 2017) - Legend Power Systems Inc. (TSX VENTURE: LPS) today reported its first quarter 2017 financial results for the three months ended December 31, 2016. Currency amounts are in Canadian dollars.

Summary:

• Achieved revenue of $644,847
• Blended gross profit margin of 43%
• 9 unique customer transactions
• Total of 11 unit sales
• $58,622 average unit sales price
• Committed orders¹ for 20 units

Corporate Update

The Legend Power sales team continued to increase opportunity flow in core target markets during the quarter. Several proof-of-concept deals are expected to move to full product rollouts as new opportunities and markets continue to materialize. Revenue of $644,847 was realized in the first quarter of fiscal 2017 and the company boasts a sizeable number of Committed orders.

In many ways, the beginning of Legend's Fiscal year was the beginning of its transition from a startup entity to a growth stage company. The Company has a strengthened balance sheet, the product is a strong performer offering appreciable value, and the five pillars required to support a growth stage company are now in place. The five pillars are:

1. Having the right people;
2. Sufficient capital to fuel growth;
3. The operational capacity to support growing sales;
4. A proven product that meets or exceeds customer expectations; and
5. Demonstrable customer success with anticipated sales growth.

The primary operational initiatives Legend Power is focused on are:

• Methodical sales growth -- introduction of Legend to new geographical regions
  • Implement major account management methodology
  • Leverage marketing plan as an enabler and accelerator of sales
  • Develop and introduce a professional "reseller franchise" offering
• Increase profitability
  • Proactive cost management
  • Margin improvement for installation component of sale
• Manage working capital requirements
• Improve field service levels to shorten sales cycle and increase customer satisfaction
• Deliver next generation product on time and on budget

Financial summary for the three month periods ended December, 2016 and 2015