UQM Technologies Reports First Quarter Operating Results
FREDERICK, Colo., July 23 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2003. Operations for the first quarter resulted in a net loss of $390,326 or $0.02 per common share on total revenue of $3,169,463 versus a net loss of $597,891 or $0.03 per common share on total revenue of $4,772,613 for the first quarter last year. Continuing operations for the first quarter resulted in a loss of $390,326 or $0.02 per common share versus a loss from continuing operations of $412,920 or $0.02 per common share for the first quarter last year.
"During the quarter we received a number of new technology development and application projects that significantly raised the level of our backlog for contract services. Contract services revenue for the quarter, however, declined 18 percent versus the comparable quarter last year due to the application of engineering resources on the internally funded development of a new microprocessor platform for our family of power electronic controllers. The development of this new platform is expected to dramatically improve the operational capability of our power systems as well as enhance their industry leading performance. As a result of these activities, research and development expenditures for the first quarter rose to $144,789 or $0.01 per common share versus $64,381 or nil per common share for the comparable quarter last year. Our contract electronics manufacturing business unit continued to be adversely impacted by the significant downturn in the industry, reporting a loss for the quarter of $321,238 representing 82 percent of consolidated losses for the quarter. We are continuing to aggressively manage the cost and working capital structure of the Company which has allowed us to maintain cash on hand in excess of $2 million for nearly fourteen consecutive months," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer.
The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the first quarter. To attend the conference call, please dial 1-415-537-1901 approximately ten minutes before the conference is scheduled to begin. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Daylight Time today. To access the playback call 1-800-633-8284 and give reservation number 21155431. For international callers, dial 1-402-977-9140.
UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power systems for battery hybrid and fuel cell electric vehicles, 42 volt under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center and motor manufacturing operation are located in Frederick, Colorado. Its electronic products manufacturing facility is located in St. Charles, Missouri. For more information on the Company, please visit its worldwide website at www.uqm.com .
This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this press release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things, the development of markets for our products. Important risk factors that could cause actual results to differ from those contained in the forward- looking statements include our ability to be profitable, our ability to obtain additional financing, our reliance on major customers and suppliers, our ability to commercialize our products and the possibility that product liability insurance may become available to us.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter Ended June 30,
2003 2002
Revenue:
Contract services $633,315 771,152
Product sales 2,536,148 4,001,461
3,169,463 4,772,613
Operating costs and expenses:
Costs of contract services 471,541 658,489
Costs of product sales 2,320,888 3,736,817
Research and development 144,789 64,381
General and administrative 606,544 875,833
3,543,762 5,335,520
Loss from continuing operations
before other income (expense) (374,299) (562,907)
Other income (expense):
Interest income 6,587 8,150
Interest expense (22,614) (19,233)
Gain on sale of assets -- 161,070
(16,027) 149,987
Loss from continuing operations (390,326) (412,920)
Discontinued operations:
Loss on disposal of gear division
including operating losses during
phase-out period -- (184,971)
-- (184,971)
Net loss $(390,326) (597,891)
Net loss per common share-basic
and diluted:
Continuing operations $(.02) (.02)
Discontinued operations -- (.01)
$(.02) (.03)
Weighted average number of shares
of common stock outstanding
-basic and diluted 18,846,235 18,624,606
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2003 March 31, 2003
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $2,162,090 2,476,276
Accounts receivable 1,436,254 1,034,002
Costs and estimated earnings in excess
of billings on uncompleted contracts 196,951 187,484
Inventory obligations of certain
customers, net 810,972 789,767
Inventories 1,232,946 1,620,262
Prepaid expenses and other
current assets 401,668 112,568
Total current assets 6,240,881 6,220,359
Property and equipment, at cost:
Land 181,580 181,580
Building 2,296,957 2,296,957
Machinery and equipment 7,037,864 6,962,596
9,516,401 9,441,133
Less accumulated depreciation (5,232,415) (4,944,608)
Net property and equipment 4,283,986 4,496,525
Patent and trademark costs,
net of accumulated amortization
of $289,508 and $276,218 777,942 751,473
Other assets 24,205 24,205
$11,327,014 11,492,562
June 30, 2003 March 31, 2003
Liabilities and Stockholders' Equity (Unaudited)
Current liabilities:
Accounts payable $1,150,221 975,344
Other current liabilities 735,131 794,575
Note payable 162,473 --
Current portion of long-term debt 118,969 116,921
Billings in excess of costs
and estimated earnings on
uncompleted contracts 188,161 223,378
Total current liabilities 2,354,955 2,110,218
Long-term debt, less current portion 1,041,908 1,072,341
Total liabilities 3,396,863 3,182,559
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
18,847,980 and 18,844,515 shares
issued and outstanding 188,480 188,445
Additional paid-in capital 55,894,045 55,885,486
Accumulated deficit (47,746,354) (47,356,028)
Accumulated other comprehensive loss (384,300) (384,300)
Note receivable from officer (21,720) (23,600)
Total stockholders' equity 7,930,151 8,310,003
$11,327,014 11,492,562
The following table summarizes significant financial statement information
for operations of each of the reportable segments for the quarter ended
June 30, 2003:
Mechanical Electronic
Technology Products Products Total
Revenue $869,832 1,010,064 1,289,567 3,169,463
Interest income 5,657 930 -- 6,587
Interest expense (1,971) (20,643) -- (22,614)
Depreciation and
amortization (68,612) (54,639) (177,846) (301,097)
Earnings (loss) from
continuing operations (112,595) 43,507 (321,238) (390,326)
Net earnings (loss) (112,595) 43,507 (321,238) (390,326)
Total segment assets 4,036,137 3,283,635 4,007,242 11,327,014
Capital expenditures
for segment assets $(84,492) -- (30,535) (115,027)
The following table summarizes significant financial statement information
for operations of each of the reportable segments for the quarter ended
June 30, 2002:
Mechanical Electronic
Technology Products Products Total
Revenue $845,821 1,094,963 2,831,829 4,772,613
Interest income 7,977 173 -- 8,150
Interest expense -- (11,945) (7,288) (19,233)
Depreciation and
amortization (81,214) (46,882) (214,733) (342,829)
Earnings (loss) from
continuing operations (500) 5,354 (417,774) (412,920)
Net loss (500) (179,617) (417,774) (597,891)
Total segment assets 4,741,642 3,076,202 7,472,353 15,290,197
Capital expenditures
for segment assets $(56,868) (103,588) -- (160,456)