Enova Systems Reports Third Quarter Results; Revenues Increase by Over 45% Year to Date
TORRANCE, Calif.--Nov. 21, 2002--Enova Systems, Torrance, California (OTCBB:ENVA), has submitted its Form 10Q for the quarter ended September 30, 2002 to the U.S. Securities and Exchange Commission. In the first three quarters of 2002, the Company has achieved a 45% increase in revenues -- to $3.74 million -- as compared with the first nine months of 2001.The magnitude of this increase means that revenues-to-date in 2002 -- with a quarter to go -- already approach the $3.78 million achieved in 2001. Product and service revenues for the three-month and nine-month periods rose 90% and 45% respectively compared with the previous year.
Enova's ongoing penetration into the heavy-duty drive systems market remains a primary driver in the Company's strong performance. The increased demand for Enova's Panther(TM) heavy-duty drive systems, including the Panther(TM) 240kW and 120kW drive systems from customers in the U.S., Europe and Asia, continues to strengthen the Company's revenue base. With new markets being developed in the U.S., Japan, the United Kingdom and Southeast Asia, Enova believes sales will continue to grow during 2003. Additionally, the Ford fuel cell power converter program, Hyundai Motor Company development programs and federal government research and development programs (through the State of Hawaii and the U.S. Department of Transportation), will continue to increase revenues and Enova's technology base.
The third quarter ending September 30, 2002 included many important accomplishments including:
| -- | ChevronTexaco Technology Ventures contracting with Enova to assist in the development and manufacture of a process control system for ChevronTexaco Technology Ventures' hydrocarbon fuel processors for stationary fuel cell applications, expanding Enova's presence in the stationary power market. |
| -- | Agreeing in principle with Hyundai Heavy Industries of Korea to establish a joint U.S. Advanced Technology Center in Torrance, California to advance current technologies, create new intellectual property and develop new products for hybrid and fuel cell transportation and stationary fuel-cell applications for world markets in commercial, industrial and residential applications. |
| -- | Increasing demand for Enova's Heavy Duty Panther(TM) 240kW and 120kW Panther drive systems. Enova continues to deliver its most robust drive systems for both transit buses and urban delivery trucks to Advanced Vehicle Systems, located in Chattanooga, Tennessee. Year-to-date, six systems have been delivered with additional orders anticipated for the remainder of 2002 and 2003. Additionally, the Company has delivered more than 30 Panther(TM) 120kW drive systems to customers such as Eco Power Technology (EPT) in Italy, Wrights' Environment (a division of Wrights Bus, one of the largest low-floor bus manufacturers in the United Kingdom) and Hyundai Motor Company of Korea. These systems are sold in both pure-electric and hybrid-electric configurations using the Capstone microturbine as their primary power source. |
| -- | Commencing the final prototype phase and testing of the high voltage power converter for the Ford Focus Fuel Cell vehicle. The system is performing to specification in the Ford Focus fuel cell vehicle and is being reviewed for other systems for Enova's global customer base. |
Carl D. Perry, CEO and president, stated, "Enova's leadership in digital power is reflected in our noteworthy third-quarter results, demonstrating progress in a challenging economic climate. Our new agreement with ChevronTexaco Technology Ventures is emblematic of Enova's rising recognition in the critical stationary power market. In the mobile source space, our heavy-duty drive systems are internationally recognized for their robustness, efficiency and economy."
The latest 10Q reports that the Company's cost of sales for the nine months ended September 30, 2002 increased from $1,801,000 to $3,010,000 contributable to both the increase in revenues for the comparable periods as well as increased initial non-recurring start-up and integration costs to develop new customers. For the quarter ended September 30, 2002, cost of sales increased from $638,000 to $1,147,000. General and administrative expenses decreased by 8% -- from $1,900,000 to $1,748,000 compared to the corresponding nine months ended September 30, 2001. For the three months ended September 30, 2002, general and administrative expenses decreased from $622,000 to $561,000 or 5% as compared to the same period in 2001. Reduced professional fees as well as other cost-reduction methods accounted for these reductions. Internal research and development costs decreased from $714,000 to $622,000 for the nine months ended September 30, 2002 as compared to the prior year. Enova has been allocating a substantial portion of its R&D resources to externally funded programs such as the Ford fuel cell, Hyundai advanced drive systems and ChevronTexaco programs, as well as others. The Company incurred a net loss from operations of $1,876,000 for the nine months ended June 30, 2002 which was slightly less than the $1,901,000 loss for the nine months ended September 30, 2001. The net loss from operations for the quarter ended September 30, 2002 decreased to $635,000 from $809,000, or by 22%, for the quarter ended September 30, 2001.
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