IMPCO Reports Third Quarter Results
- Major Investment in Fuel Cell Related Product Development and Research
CERRITOS, Calif., March 15 IMPCO Technologies Inc.
the world's leading source of alternative propulsion and fuel
storage systems today reported results for its fiscal quarter and nine-month
period ended January 31, 2001.
For the third quarter of fiscal 2001, IMPCO reported a net loss of
$4.4 million or 42 cents per share on revenues of $22.0 million. This
compared to net income of $.8 million or 9 cents per share for the third
quarter of fiscal year 2000 on revenues of $27.9 million. During the current
quarter, IMPCO invested a record $9.0 million (40.8% of revenue) in research
and development, a $5.1 million increase over the third quarter fiscal year
2000 period. Of this amount, Quantum Technologies, a wholly owned subsidiary,
invested $6.2 million in research and product development versus $1.5 million
in the prior year third quarter. Quantum, whose technology and business is
primarily focused on the emerging fuel cell industry, is developing advanced
gaseous fuel storage systems, fuel metering and electronic control systems for
the stationary and portable power generation and mobile vehicle fuel cell
markets. Pre-commercialization expenditures for new product introduction were
a major use for the funds.
During the current quarter, revenues of IMPCO's core business declined
$4.4 million or 16.6 percent versus the same period last year due primarily to
the slowing worldwide economy, uncertainty with current energy prices and
unfavorable foreign currency exchange rates which negatively impacted revenues
by $1.0 million due to the strengthening of the U.S. dollar. Robert M.
Stemmler, CEO and Chairman, said, "The near term growth and prospects for our
core business remains very strong and favorable. We recognize the current
downturn as a short term event and expect our growth to restart in the next
quarter as recently announced programs with the State of Mexico, Scania in
Europe, Astok Leylan in India and United Parcel Service in the U.S. are
initiated. Additional growth business in India, Mexico, Thailand and China is
also expected in the near future." Quantum's product revenue for the third
quarter at $2.8 million was $300,000 less than the prior year quarter and was
related to customer production scheduling.
For the nine-month period of fiscal year 2001, IMPCO reported a net loss
of $6.3 million or 65 cents per share on revenues of $76.7 million. This
compared to net income of $3.8 million or 43 cents per share for the same
period of fiscal year 2000 on revenues of $83.7 million. Research and
development expenses increased by $11.7 million in the current nine-month
period compared to the same period of last fiscal year.
The decrease in revenues of $7.0 million during the nine month period
versus the same period last year was primarily due to a slow down of
aftermarket motor vehicle conversion sales, a slowing world economy and an end
to the short term increase in sales to the small engine gen-set market related
to the Y2k phenomena which resulted in $2.8 million less sales than last year.
Unfavorable exchange rates due to the strengthening of the U.S. dollar versus
the same period last year depressed sales by $2.6 million.
In commenting on IMPCO's strategy for the fuel cell industry, Robert M.
Stemmler, IMPCO's CEO stated, "During February, we announced the formation of
Quantum Technologies, Inc., as a wholly owned subsidiary of IMPCO Technologies
to focus on enabling technologies for alternative propulsion and energy
storage systems in emerging global markets. We remain fully committed to our
strategy of providing advanced technology products for the emerging
hydrogen/fuel cell industry as evidenced by our increased spending on research
and development to a record level of $9.0 million for the third quarter as
compared to $3.9 million in the prior year period. Our objective of
strengthening our technology and product leadership position in the emerging
fuel cell industry and the expanding alternative fuel industry are being met.
Our strong worldwide OEM customer base in the alternative fuels industry is
now being successfully expanded into the emerging fuel cell industry." He
added that the Company continues to add new development programs with the
leaders in its target markets. "Although significant portions of our activity
are subject to contractual non-disclosure agreements with our customers, our
research and development expenditures are being targeted towards
commercialization of new advanced products with our existing and prospective
customer base. Among them; Ford, Xcellsis, Ballard, Hyundai, Toyota, Isuzu,
Mazda and Mitsubishi, in addition to General Motors in the transportation
market, and Honda. Yamaha and Mitsubishi in the power generation market."
Third Quarter Highlights
-- IMPCO Forms QUANTUM Technologies, A 100% Wholly Owned Subsidiary
-- IMPCO Supplies United Parcel Service With $15 Million In Engine
Packages
-- IMPCO Receives Order From India Worth $4 Million
-- Stationary Power Generator Orders Double at IMPCO
-- IMPCO And Scania Introduce Natural Gas Powered Truck
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
Three and Nine Months ended January 31, 2000 and 2001
Three Months Ended Nine Months Ended
January 31, January 31,
2000 2001 2000 2001
Revenue:
Product sales $24,832,050 $20,927,661 $76,759,293 $70,183,074
Contract revenue 3,103,743 1,115,919 6,953,371 6,480,061
Net revenue 27,935,793 22,043,580 83,712,664 76,663,135
Costs and expenses:
Cost of product
sales 17,089,826 14,918,342 50,750,187 48,778,541
Research and
development
expense 3,909,239 8,979,470 10,541,744 22,220,111
Selling, general
and
administrative
expense 5,488,635 6,175,489 15,573,212 16,784,999
Total costs
and expenses 26,487,700 30,073,301 76,865,143 87,783,651
Operating income
(loss) 1,448,093 (8,029,721) 6,847,512 (11,120,516)
Interest expense
(income), net 560,528 (110,950) 1,138,239 136,499
Income (loss)
before income
taxes, minority
interest in
income of
consolidated
subsidiaries
and dividends 887,565 (7,918,771) 5,709,282 (11,257,015)
Income tax expense
(benefit) (58,536) (3,563,447) 1,484,413 (5,065,656)
Minority interest
in income (loss)
of consolidated
subsidiaries 153,925 (3,841) 376,299 149,909
Net income (loss)
applicable to
common stock $792,176 $(4,351,483) $3,848,570 $(6,341,268)
Net income (loss)
per share:
Basic $0.09 $(0.42) $0.45 $(0.65)
Diluted $0.09 $(0.42) $0.43 $(0.65)
Number of shares
used in per share
calculation:
Basic 8,464,312 10,277,551 8,462,958 9,823,173
Diluted 9,098,931 10,277,551 8,947,709 9,823,173
