UQM Technologies Reports First Quarter Operating Results
FREDERICK, Colo., Aug. 3, 2005 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2005. Continuing operations for the first quarter resulted in a loss of $720,374 or $0.03 per common share on total revenue of $1,153,205 versus a loss from continuing operations of $697,721 or $0.04 per common share on total revenue of $683,996 for the first quarter last year. Net loss for the quarter was $730,805 or $0.03 per common share versus a net loss of $714,903 or $0.04 per common share for the comparable quarter last year.
"Product sales for the quarter more than doubled to $685,617 from $268,006 for the first quarter last fiscal year driven by sales of higher volume products manufactured by our power products segment which nearly doubled and by higher levels of low volume products which rose over five-fold to $257,556. Our losses from continuing operations for the quarter ended June 30, 2005 were due to reduced gross profit margins on contract services and expenses associated with the expansion of our production engineering and manufacturing infrastructure, which was partially offset by lower levels of research and development expenses and general and administrative expenses," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer. "On June 30, 2005 we completed a private placement of our common stock which raised our cash and short-term investments to $11.2 million and further strengthened our balance sheet which we believe is important to the execution of our strategy to make selective investments in programs and product developments that we believe could lead to volume production of our motor and controls technology in both existing and emerging markets."
Separately, the Company announced today that it has received an order for twenty-nine DC to DC converters from Eaton Corporation's Truck Components business unit for use in hybrid electric trucks.
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, 2005. To attend the conference call, please dial 1-888-293-1201 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-415-908-6229. 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 21256610. 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.
This 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 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; the adequacy of our cash balances and liquidity to meet future operating needs, and our ability to issue equity or debt securities; and the effect of legal actions and claims that we are involved in. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-Q filed August 3, 2005 which is available through our website at www.uqm.com or at www.sec.gov.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
June 30, 2005 March 31, 2005
Assets
Current assets:
Cash and cash equivalents $8,692,548 5,788,232
Short-term investments 2,484,004 2,220,594
Accounts receivable 674,109 890,509
Costs and estimated earnings in excess
of billings on uncompleted contracts 442,732 435,925
Inventories 481,957 648,173
Prepaid expenses and other
current assets 291,048 109,198
Total current assets 13,066,398 10,092,631
Property and equipment, at cost:
Land 181,580 181,580
Building 2,295,067 2,292,687
Machinery and equipment 2,459,126 2,422,034
4,935,773 4,896,301
Less accumulated depreciation (2,509,022) (2,443,590)
Net property and equipment 2,426,751 2,452,711
Patent and trademark costs, net of
accumulated amortization of $473,361
and $450,011 592,468 613,448
Other assets 850 850
Total assets $16,086,467 13,159,640
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $336,656 678,007
Other current liabilities 367,576 269,746
Current portion of long-term debt 137,689 135,255
Liabilities and commitments of
discontinued operations 157,581 154,287
Billings in excess of costs and
estimated earnings on
uncompleted contracts 59,856 66,510
Total current liabilities 1,059,358 1,303,805
Long-term debt, less current portion 775,653 810,915
Long-term liabilities and commitments of
discontinued operations 57,051 57,051
832,704 867,966
Total liabilities 1,892,062 2,171,771
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
24,544,194 and 23,177,133 shares
issued and outstanding 245,442 231,771
Additional paid-in capital 68,691,645 64,767,975
Accumulated deficit (54,742,682) (54,011,877)
Total stockholders' equity 14,194,405 10,987,869
Total liabilities and
stockholders' equity $16,086,467 13,159,640
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Quarter Ended June 30,
2005 2004
Revenue:
Contract services $467,588 415,990
Product sales 685,617 268,006
1,153,205 683,996
Operating costs and expenses:
Costs of contract services 662,556 581,567
Costs of product sales 603,686 234,680
Research and development 30,320 52,036
Production engineering 166,690 --
General and administrative 448,445 499,707
Impairment of long-lived assets 1,455 2,234
1,913,152 1,370,224
Loss from continuing operations
before other income (expense) (759,947) (686,228)
Other income (expense):
Interest income 56,165 8,367
Interest expense (16,592) (19,860)
39,573 (11,493)
Loss from continuing operations (720,374) (697,721)
Discontinued operations:
Loss from operations of discontinued
electronic products segment (10,431) (17,182)
Net loss $(730,805) (714,903)
Net loss per common share - basic
and diluted:
Continuing operations $(.03) (.04)
Discontinued operations -- --
$(.03) (.04)
Weighted average number of shares of
common stock outstanding - basic
and diluted 23,193,205 19,574,172
The following table summarizes significant unaudited financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2005:
Power
Technology Products Total
Revenue $725,144 428,061 1,153,205
Interest income 53,756 2,409 56,165
Interest expense -- (16,592) (16,592)
Depreciation and amortization (60,274) (28,508) (88,782)
Segment earnings (loss)
from continuing operations (748,588) 28,214 (720,374)
Assets of continuing
operations 13,208,642 2,877,825 16,086,467
Expenditures for
segment assets $(16,978) (26,319) (43,297)
The following table summarizes significant unaudited financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2004:
Power
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 loss from continuing
operations (653,556) (44,165) (697,721)
Assets of continuing
operations 4,948,256 2,835,474 7,783,730
Expenditures for
segment assets $(50,497) (747) (51,244)