UQM Technologies Reports First Quarter Operating Results
FREDERICK, Colo., July 28 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2004. Continuing operations for the first quarter resulted in a loss of $697,721 or $0.04 per common share on total revenue of $683,996 versus a loss from continuing operations of $183,998 or $0.01 per common share on total revenue of $1,879,896 for the first quarter last year. Net loss for the quarter, which includes losses from discontinued operations of $17,182 or nil per common share, was $714,903 or $0.04 per common share versus a net loss of $390,326 or $0.02 per common share, which included losses from discontinued operations of $206,328 or $0.01 per common share, for the comparable quarter last year.
"Revenue and operating results for the first quarter were adversely impacted by delays in the application of software developed earlier this year for our new microprocessor platform to additional motor systems which reduced contract services revenue levels and margins and by the previously announced disruption of orders for wheelchair propulsion motors which resulted in a substantial decline in product sales for the quarter. Shipments of wheelchair propulsion systems have resumed at previously announced revenue levels and contract services revenue levels are expected to rise as we move through the second quarter, resulting in a decline in losses from continuing operations in future quarters", said Donald A. French, Treasurer and Chief Operating Officer.
The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the quarter ended June 30, 2004. To attend the conference call, please dial 1-415-537-1802 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 approximately four hours after the call. To access the playback dial 1-800-633-8284 and give reservation number 21203282. International callers should 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 propulsion systems for electric, hybrid electric 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. For more information on the Company, please visit its worldwide website at www.uqm.com.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter ended June 30, 2004 2003
Revenue:
Contract services $415,990 633,315
Product sales 268,006 1,246,581
683,996 1,879,896
Operating costs and expenses:
Costs of contract services 581,567 435,979
Costs of product sales 234,680 1,028,497
Research and development 52,036 144,789
General and administrative 499,707 437,793
Other 2,234 809
1,370,224 2,047,867
Loss from continuing operations
before other income (expense) (686,228) (167,971)
Other income (expense):
Interest income 8,367 6,587
Interest expense (19,860) (22,614)
(11,493) (16,027)
Loss from continuing operations (697,721) (183,998)
Discontinued operations:
Loss from operations of discontinued
electronic products segment (17,182) (206,328)
Net loss $(714,903) (390,326)
Net loss per common share -- basic
and diluted
Continuing operations $(.04) (.01)
Discontinued operations -- (.01)
$(.04) (.02)
Weighted average number of shares of
common stock outstanding -- basic
and diluted 19,574,172 18,846,235
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2004 March 31, 2004
Assets (unaudited)
Current assets:
Cash and cash equivalents $2,887,678 3,005,709
Accounts receivable 494,398 512,995
Costs and estimated earnings
in excess of billings on
uncompleted contracts 327,534 245,984
Inventories 631,685 428,438
Prepaid expenses and other current assets 256,943 72,649
Assets of discontinued operations -- 1,226,943
4,598,238 5,492,718
Property and equipment, at cost:
Land 181,580 181,580
Building 2,292,687 2,292,687
Machinery and equipment 2,735,368 2,793,343
5,209,635 5,267,610
Less accumulated depreciation (2,714,289) (2,732,291)
Net property and equipment 2,495,346 2,535,319
Patent and trademark costs,
net of accumulated amortization
of $381,788 and $360,260 689,296 692,371
Other assets 850 850
$7,783,730 8,721,258
June 30, 2004 March 31, 2004
Liabilities and Stockholders' Equity (unaudited)
Current liabilities:
Accounts payable $504,746 392,474
Other current liabilities 389,037 258,258
Note payable 96,393 --
Current portion of long-term debt 127,797 125,611
Liabilities of discontinued operations -- 542,617
Current portion of accrued lease obligation 39,493 11,947
Billings in excess of costs
and estimated earnings on
uncompleted contracts 201,772 189,252
Total current liabilities 1,359,238 1,520,159
Long-term debt, less current portion 913,743 946,423
Long-term portion of accrued lease obligation 155,764 192,118
Total long-term liabilities 1,069,507 1,138,541
Total liabilities 2,428,745 2,658,700
Stockholders' equity:
Common stock, $.01 par value, 50,000,000 shares
authorized; 19,574,730 and 19,572,625 shares
issued and outstanding 195,747 195,726
Additional paid-in capital 58,030,883 58,025,631
Accumulated deficit (52,857,884) (52,142,981)
Note receivable from officer (13,761) (15,818)
Total stockholders' equity 5,354,985 6,062,558
$7,783,730 8,721,258
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2004:
Mechanical
Technology Products Total
Revenue $462,590 221,406 683,996
Interest income 7,053 1,314 8,367
Interest expense (1,121) (18,739) (19,860)
Depreciation and amortization (64,094) (27,964) (92,058)
Segment earnings (loss) from
continuing operations (719,880) 22,159 (697,721)
Assets of continuing
operations 4,948,256 2,835,474 7,783,730
Expenditures for
segment assets $(50,497) (747) (51,244)
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2003:
Mechanical
Technology Products Total
Revenue $869,832 1,010,064 1,879,896
Interest income 5,657 930 6,587
Interest expense (1,971) (20,643) (22,614)
Depreciation and amortization (68,612) (54,639) (123,251)
Segment earnings (loss) from
continuing operations (227,505) 43,507 (183,998)
Assets of continuing
operations 4,036,137 3,283,635 7,319,772
Expenditures for
segment assets $(85,301) -- (85,301)