Enova Systems Reports Second Quarter Results
TORRANCE, Calif.--Aug. 29, 2002--Enova Systems, Torrance, California (OTCBB:ENVA), submitted its Form 10Q for the quarter ended June 30, 2002 to the U.S. Securities and Exchange Commission on August 14, 2002. Increased sales of heavy-duty drive systems -- and engineering contracts with Ballard, Ford and Hyundai Motor Company -- were key elements of the 27% increase in revenues to $2.4 million as compared with the first six months of 2001.Net sales for the three-month and six-month periods rose 91% and 27% respectively compared with the previous year. This increase reflects rising demand for Enova's Panther(TM) 120kW drive systems from customers in the U.S., Europe and Asia, as well as additional development of the Ballard low voltage drive system for the Th!nk city vehicle and on the Ford fuel cell power converter program. Revenues for the six-month period were also boosted by the Company's work with Hyundai Motor Company (including the parallel hybrid motor and controller program), as well as ongoing work with the federal government through the State of Hawaii and the U.S. Department of Transportation.
Cost of sales of $1,863,000 for the six months ended June 30, 2002 increased from $1,164,000, reflecting a shift in expenses supporting engineering contract sales to expenses incurred in supporting greater product sales. For the quarter ended June 30, 2002, cost of sales increased from $505,000 to $1,160,000. Compared to the corresponding six months ended June 30, 2001, general and administrative expenses decreased by 8% -- from $1,290,000 to $1,188,000. General and Administrative expenses decreased from $823,000 to $573,000 or 29% for the quarter ended June 30, 2002 as compared to the same period in 2001. Reduced professional fees and efforts to decrease general overhead accounted for a majority of this reduction. Enova will continue to seek additional methods to reduce expenses and increase revenues as it moves toward its goal of profitability in 2003. As a result of these changes, the net loss from operations increased for the six months ended June 30, 2002 by 13% compared to the prior year or from $1,092,000 to $1,241,000. The net loss from operations for the quarter ended June 30, 2002 decreased to $536,000 from $811,000 for the quarter ended June 30, 2001.
Notable achievements during the first six months of 2002 included:
| -- | A private placement funding of over $4.2 million in June of this year. These funds -- raised in an especially challenging investment climate -- are providing a vital assist for Enova's production and expansion plans for 2002 and 2003, as well as for our internal research and development in stationary and mobile power management. |
| -- | Delivery of the Panther(TM) 240kW drive system to Advanced Vehicle Systems, located in Chattanooga, Tennessee. This system is earning its stripes as a viable, "drop-in" alternative in heavy-duty mobile applications such as transit buses and Class 8 and 9 trucks (Please refer to the company's website www.enovasystems.com for technical specifications of the Panther(TM) 240kW and 120kW drive systems.) |
| -- | Continued progress of Enova's development of a high voltage power converter for the Ford Focus Fuel Cell vehicle. This system was a key component in the Focus FCV, recently featured at the New York International Auto Show. This component is meeting specifications in its design testing and verification phase. |
| -- | Demand continues to rise for Enova's Panther 120kW drive systems. The Company delivered more than 25 Panther 120kW drive systems, in both pure electric and hybrid-electric configurations. Customers such as Eco Power Technology (EPT) in Italy and Wrights' Environment (a division of Wrights Bus, one of the largest low-floor bus manufacturers in the United Kingdom) have purchased and integrated the hybrid electric Panther(TM) 120kW drive system into their buses using the Capstone microturbine as its primary power source. |
| -- | Enova's strategic partnership with Hyundai Motor Company of Korea continues to gather strength, reflected in contracts for advanced hybrid and fuel cell powered drive systems and components. Hyundai Motor Company also has begun to purchase Enova's components developed with other alliance partners. |
Carl D. Perry, CEO and president, stated, "Enova believes it is on the leading edge of technology advancement, while increasing sales and attracting new customers. Our move into production sales is increasing our revenue base as more companies in the automotive, transit and power markets become aware of Enova's prowess in power management and processing. We have established alliances with world-class partners such as Ford, Hyundai, and Ballard -- and intend to continue to develop these partnerships as a key element of our long-term strategic plan. Enova has established itself as a force in global markets for mobile and stationary source power. We will continue to build an outstanding team in Torrance, and intend to continue to seek out new world-class partnerships for increasing market penetration in transportation and stationary applications."
This news release contains forward-looking statements relating to Enova Systems and its products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. Such statements do not imply the future success of the Company or its products. These risks and uncertainties are detailed from time to time in Enova Systems' filings with the Securities and Exchange Commission under the name Enova Systems, Inc.
For Marketing and Sales Information:
Edward Moore, Vice President, Marketing & Sales
310/527-2800 ext. 114
edmoore@enovasystems.com
For Investor Relations:
Larry Lombard, Finance & Administration
310/527-2800 ext. 103
llombard@enovasystems.com