Enova Systems Reports Year End 2004 Results
TORRANCE, Calif.--April 7, 2005--Enova Systems, Torrance, California (OTCBB:ENVA), has submitted its year ended December 31, 2004 results to the U.S. Securities and Exchange Commission reporting revenues of $2.6 million for the year and losses from continuing operations of $3.38 million.
Selected Annual Information:
Years Ended December 31, December 31, December 31,
2004 2003 2002
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Revenue $2,554,000 $4,310,000 $4,455,000
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Net Loss $3,382,000 $3,186,000 $3,598,000
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Net Loss per Share $0.01 $0.01 $0.01
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Total Assets $5,887,000 $4,870,000 $6,224,000
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2004 was a year of change and growth for Enova Systems. We restructured our management team, refined our strategic plan, brought new products to market, increased our global presence with new alliances and streamlined operations. Although revenues were lower for 2004, we believe we have now firmly established ourselves as a premier global developer and supplier of leading-edge hybrid drive systems and clean energy components for heavy-duty vehicles and alternative energy systems. Our various electric and hybrid-electric drive systems, power management and power conversion systems are being used in applications, including Class 8 trucks, train locomotives, transit buses and industrial vehicles, as well as in non-transportation applications such as fuel-cell management and power management systems, including the EDO minesweeper. We have furthered our development and production of both mobile and stationary fuel cell powered systems with major companies such as Ford and Hydrogenics, a fuel cell developer in Canada.
Notable achievements in 2004 included:
-- developing and producing several new proprietary heavy-duty hybrid drive systems for the truck, bus and military vehicles markets including:
-- our new diesel generator set, developed in conjunction with the Hyundai-Enova Innovative Technology Center, which provides 60kW continuous power for hybrid, urban transit and delivery vehicles;
-- our 120/60kW and 240/60kW Series Hybrid drive for both transit and truck applications. These powerful hybrid systems are currently being used with our new diesel generator set by customers such as WrightBus (UK), Tomoedenki (Japan) and MTrans (Malaysia). Our Series Hybrid is also utilized with fuel cell power generators for Hydrogenics/Purolator (Canada), the U.S. Air Force and the U.S. Department of Transportation;
-- our 25/80kW post-transmission parallel hybrid motor and controller for both commercial and military truck as well as industrial vehicle applications. Our latest heavy duty hybrid system can be found in vehicles by Mack Truck (R11 refueler truck) and Tomoedenki (Seoul subway train), with the potential for refuse vehicles and other urban delivery vehicles. We anticipate additional markets for this versatile system over the coming quarters and years;
-- our 25/80kW pre-transmission parallel hybrid motor and controller for bus and truck applications. Specifically engineered for First Auto Group of China, this new drive system has the potential for higher volumes in 2006 and beyond in China and elsewhere. For more detailed product information, please visit Enova's website at www.enovasystems.com.
-- continuing to build and strengthen global alliances with heavy-duty vehicle and system providers in the U.S., Europe and Asia, including First Auto Group of China; WrightBus (UK); Tomoedenki (Japan); Tsinghua University (China); Hydrogenics (Canada); Concurrent Technologies (US); Mack Truck / Volvo; Eneco (UK) and others.
-- expanding our market presence in the fuel cell powered vehicle markets for automobiles, trucks, buses and military vehicles utilizing our proprietary propulsion and power management systems in vehicles for the Ford Motor Company (Focus FCV); the Hyundai Motor Company (Tucson FCHEV); the U.S. Air force (Hickam fuel cell bus and fuel cell step-van); Hydrogenics/Purolator (fuel cell delivery van), as well as other upcoming vehicle programs.
"In 2004, Enova continued the transition from primarily a research and development company to production of our hybrid drive systems and digital power management products," said Ed Riddell, president and CEO of Enova Systems, Inc. "Our customer base is solid, our products are out-performing expectations and our position as a provider of hybrid technologies to the heavy-duty transit and truck markets continues to improve. We have sharpened our market focus and set out specific product, customer and market goals for year 2005 and beyond."
For the year ended December 31, 2004, our $3,382,000 net loss is $196,000 more than the loss incurred in 2003 of $3,186,000, an increase of 6%. The increase is due primarily to: write-offs of obsolete and slow-moving inventory during the year; increased internal development for new products; and costs associated with our annual meeting and other regulatory compliance. Excluding approximately $350,000 in write-downs of obsolete inventory and other non-recurring charges -- as well as non-cash expenses of approximately $913,000 including depreciation, accrued interest and equity investment losses -- Enova's pro forma cash loss from operations was $2,119,000. Net sales of $2,554,000 for the twelve months ended December 31, 2004 decreased $1,756,000 or 41% from $4,310,000 during the same period in 2003. During 2004, we experienced a slowdown in sales due to a number of internal and external developments including personnel changes, and customer delays in ordering caused by continued evaluation of our systems or awaiting orders for their products. We believe that these delayed sales will occur in 2005.
"With our new management team in place and our products ready for market, 2005 looks to be the turning point for the Company in its path to become a global leader in the development and sales of heavy-duty hybrid drive systems and components," commented Anthony Rawlinson, Enova's non-executive Chairman. "We believe the future is bright for Enova and the global market is taking notice of our expertise and achievements."