UQM Technologies Reports Second Quarter and First Half Operating Results
FREDERICK, Colo., Oct. 27, 2005 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter and six months ended September 30, 2005. Continuing operations for the second quarter resulted in a loss of $543,438 or $0.02 per common share on total revenue of $884,000 versus a loss from continuing operations of $378,461 or $0.02 per common share on total revenue of $1,234,477 for the second quarter last year. Net loss for the quarter was $576,708 or $0.02 per common share versus a net loss of $380,251 or $0.02 per common share for the comparable quarter last year.
Continuing operations for the six months ended September 30, 2005 resulted in a loss of $1,263,812 or $0.05 per common share on total revenue of $2,037,205 versus a loss from continuing operations of $1,076,182 or $0.06 per common share on total revenue of $1,918,473 last fiscal year. Net loss for the first half was $1,307,513 or $0.05 per common share versus a net loss last year of $1,095,154 or $0.06 per common share.
"The continued high price of fuel, the success of hybrid electric automobiles in the marketplace and mandated reductions in diesel emissions are creating an increased level of interest in our motor, generator and power electronic control system products which help improve the fuel efficiency and performance of vehicles," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "Many of our existing customers have shifted their focus from technology evaluation projects to production intent programs, and during the quarter, we announced a number of new contracts from both commercial and military customers who are increasingly focused on bringing electrified products to market. As a result, we are redirecting engineering resources in support our customer's production related requirements, which resulted in a decrease in contract services revenue during the quarter."
"Total revenue for the first half rose nominally versus the same period last year driven by higher sales of low volume products. Loss from continuing operations for the quarter and six months ended September 30, 2005 rose primarily due to continuing investment in our production engineering activities which totaled $172,876 and $339,566 for the second quarter and first half, respectively, and higher levels of internally-funded research and development expenditures," 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 quarter and six months ended September 30, 2005. To attend the conference call, please dial 1-800-266-1764 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-212-676-4908. 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 21265990. 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 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 are contained in our Form 10-Q filed October 27, 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)
September 30, 2005 March 31, 2005
Assets
Current assets:
Cash and cash equivalents $4,109,719 5,788,232
Short-term investments 6,519,862 2,220,594
Accounts receivable 749,377 890,509
Costs and estimated earnings in
excess of billings on
uncompleted contracts 437,353 435,925
Inventories 546,084 648,173
Prepaid expenses and other
current assets 270,373 109,198
Total current assets 12,632,768 10,092,631
Property and equipment, at cost:
Land 181,580 181,580
Building 2,295,067 2,292,687
Machinery and equipment 2,483,262 2,422,034
4,959,909 4,896,301
Less accumulated depreciation (2,571,352) (2,443,590)
Net property and equipment 2,388,557 2,452,711
Patent and trademark costs, net of
accumulated amortization of $496,711
and $450,011 579,675 613,448
Other assets 850 850
Total assets $15,601,850 13,159,640
September 30, 2005 March 31, 2005
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $315,198 678,007
Other current liabilities 342,971 269,746
Current portion of long-term debt 140,167 135,255
Liabilities and commitments of
discontinued operations 113,237 154,287
Billings in excess of costs and
estimated earnings on uncompleted
contracts 138,608 66,510
Total current liabilities 1,050,181 1,303,805
Long-term debt, less current portion 739,752 810,915
Long-term liabilities and commitments
of discontinued operations 28,164 57,051
767,916 867,966
Total liabilities 1,818,097 2,171,771
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
24,628,318 and 23,177,133
shares issued and outstanding,
respectively 246,283 231,771
Additional paid-in capital 68,856,860 64,767,975
Accumulated deficit (55,319,390) (54,011,877)
Total stockholders' equity 13,783,753 10,987,869
Total liabilities and
stockholders' equity $15,601,850 13,159,640
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Quarter Ended Six Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenue:
Contract services $470,276 591,309 937,864 1,007,299
Product sales 413,724 643,168 1,099,341 911,174
884,000 1,234,477 2,037,205 1,918,473
Operating costs and
expenses:
Costs of contract
services 471,758 582,501 1,134,314 1,164,068
Costs of product
sales 327,198 550,053 930,884 784,733
Research and
development 103,532 43,639 133,852 95,675
Production engineering 172,876 -- 339,566 --
General and
administrative 418,608 436,050 867,053 935,757
Impairment of
long-lived assets -- -- 1,455 2,234
1,493,972 1,612,243 3,407,124 2,982,467
Loss from
continuing
operations before
other income
(expense) (609,972) (377,766) (1,369,919) (1,063,994)
Other income (expense):
Interest income 81,833 8,422 137,998 16,789
Interest expense (15,824) (19,117) (32,416) (38,977)
Other 525 10,000 525 10,000
66,534 (695) 106,107 (12,188)
Loss from
continuing
operations (543,438) (378,461) (1,263,812) (1,076,182)
Discontinued
operations - loss from
operations of
discontinued electronic
products segment (33,270) (1,790) (43,701) (18,972)
Net loss $(576,708) (380,251) (1,307,513) (1,095,154)
Net loss per
common share -
basic and
diluted:
Continuing
operations $(0.02) (0.02) (0.05) (0.06)
Discontinued
operations -- -- -- --
$(0.02) (0.02) (0.05) (0.06)
Weighted average number
of shares of common
stock outstanding -
basic and diluted 24,552,704 19,574,730 23,876,669 19,574,452
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2005:
Power
Technology Products Total
Revenue $717,844 166,156 884,000
Interest income 79,395 2,438 81,833
Interest expense -- (15,824) (15,824)
Depreciation and
amortization (60,895) (27,596) (88,491)
Segment loss from
continuing operations (508,969) (34,469) (543,438)
Assets of continuing
operations 12,851,752 2,750,098 15,601,850
Expenditures for
segment assets $(53,642) 16,138 (37,504)
Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2004:
Power
Technology Products Total
Revenue $828,347 406,130 1,234,477
Interest income 7,085 1,337 8,422
Interest expense (704) (18,413) (19,117)
Depreciation and
amortization (60,691) (27,878) (88,569)
Segment (loss) earnings
from continuing operations (379,084) 623 (378,461)
Assets of continuing
operations 4,139,383 2,897,404 7,036,787
Expenditures for
segment assets $(33,620) -- (33,620)
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2005:
Power
Technology Products Total
Revenue $1,442,988 594,217 2,037,205
Interest income 133,151 4,847 137,998
Interest expense -- (32,416) (32,416)
Depreciation and
amortization (121,169) (56,104) (177,273)
Segment loss from
continuing operations (1,257,557) (6,255) (1,263,812)
Assets of continuing
operations 12,851,752 2,750,098 15,601,850
Expenditures for
segment assets $(70,620) (10,181) (80,801)
Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2004:
Power
Technology Products Total
Revenue $1,290,937 627,536 1,918,473
Interest income 14,138 2,651 16,789
Interest expense (1,825) (37,152) (38,977)
Depreciation and
amortization (124,785) (55,842) (180,627)
Segment loss from
continuing operations (1,032,640) (43,542) (1,076,182)
Assets of continuing
operations 4,139,383 2,897,404 7,036,787
Expenditures for
segment assets $(84,117) (747) (84,864)