Amerigon Reconfirms 2005 Guidance, Issues Outlook for 2006
2006 Revenue Expected to Increase 25 to 30 Percent Over 2005
DEARBORN, Mich., Sept. 7 -- Amerigon Incorporated today announced that it is reconfirming its earlier guidance for the year ending December 31, 2005, with revenue expected to be up about 10 percent from 2004, and that it expects revenue for 2006 to increase year over year 25 to 30 percent. President and CEO Daniel R. Coker said that the Company expects to report its second consecutive year of profitability in 2005 and that 2006 net income is expected to increase year over year. He said that the Company continues to see increasing acceptance of its proprietary Climate Control Seat(TM) (CCS(TM)) system from both domestic and international original equipment manufacturers (OEMs). CCS is currently offered on 18 vehicle models, including cars, trucks and sport utility vehicles (SUVs), with more expected to be introduced later this year and in 2006.
"In spite of the difficulties and challenges facing the automotive industry, 2005 is proving to be a successful year for Amerigon with a number of key accomplishments," Coker said. "We are expanding our base of vehicles offering CCS, improving the efficiency of our operations and continuing to grow the top- and bottom-line, all of which are helping set the stage for considerable future growth. In 2006, we will begin to see the impact of the progress we have made over the last 18 to 24 months. Revenues will increase substantially as we get the full benefit of CCS shipments for recently introduced vehicle models and add new vehicle models offering CCS in 2006. Margins will also continue to be strong due to improved efficiencies and net income should increase substantially.
"There are a number of macro economic and geopolitical issues outside our control, such as the effects of recent increases in gas prices and the devastation of Hurricane Katrina, that could negatively impact the automotive industry, the overall economy and our results," Coker added, "but assuming there are no major economic or industry disruptions and based on our current outlook, we are optimistic about 2006 and beyond."
Coker is meeting with institutional investors and research analysts in New York this week and he is scheduled to make a presentation at the Roth Capital Partners NY Conference today, at 4:30 p.m. Eastern Time. The conference is being held September 7-8 at the Westin Times Square in New York City.
A live webcast of the Company's presentation will be available via a link provided at http://www.wsw.com/webcast/roth6/argn/. An archive will begin shortly after the presentation time and will be available for thirty days.
About Amerigon
Amerigon designs, develops and markets its proprietary Climate Control Seat(TM) (CCS(TM)) products for sale to automotive and truck original equipment manufacturers (OEMs). CCS enhances individual driver and passenger comfort in virtually all climatic conditions by providing cooling and heating to seat occupants, as desired, through an active thermoelectric-based temperature management system. Amerigon's subsidiary, BSST, is engaged in developing thermoelectric devices (TED) with more efficiency than currently available devices and has development contracts with several customers to expand the market for TED-based automotive and non-automotive products. Amerigon maintains sales and technical support centers in Los Angeles, Detroit, Japan, Germany and England.
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties, and actual results may be different. Important factors that could cause the Company's actual results to differ materially from its expectations in this release are risks that sales may not significantly increase, new competitors may arise and adverse conditions in the automotive industry may negatively affect its results. The liquidity and trading price of its common stock may be negatively affected by these and other factors. Please also refer to the Amerigon's Securities and Exchange Commission filings and reports, including but not limited to its Form 10-Q for the period ending June 30, 2005 and its Form 10-K for the year ended December 31, 2004.