Azure Dynamics Announces First Quarter Results for 2009
OAK PARK, MI, May 12, 2009 -- Azure Dynamics Corporation (TSX: AZD) - ("Azure" or the "Company"), a leading innovator in the development of environmentally friendly and cost effective hybrid electric and electric technologies for commercial vehicles, today reported its first quarter financial results for the period ending March 31, 2009. The Company also provided an update on corporate and product development activities.
First Quarter 2009 Highlights
- On January 13, 2009, Azure announced a five year supply agreement with Johnson Controls-Saft under which Johnson Controls-Saft will supply the Company with its state-of-the-art lithium-ion hybrid batteries. This agreement with one of the world's leading developers of hybrid electric technology will enable Azure to provide a cost- effective, consistent and timely product flow to all of its customers.
- On January 15, 2009, the Company announced a plan designed to address cost issues while meeting growing demand for our solutions. The plan included a 25% workforce reduction, cuts in discretionary spending, actions to offset component cost increases and a focus on new programs that involve a sharing of development costs.
- The Balance(TM) Hybrid Electric shuttle bus passed the U.S. federal government's rigorous "Altoona" durability test enabling purchasers of the vehicle to apply for significant financial assistance from the government.
- Azure staff has completed significant due diligence on the federal stimulus program as it relates to the transportation sector. Azure executives, in turn, have met with numerous politicians and have led webinar discussions with well over 100 Ford Truck Dealers and shuttle bus dealers and manufacturers. The webinars highlighted relevant stimulus program elements that will support customer decisions to purchase Azure's green technology vehicles.
- On April 9, 2009, Azure announced a supply agreement with Collins Bus of Kansas that will allow Collins' customers to specify the Azure Balance(TM) Hybrid Electric drive train on select Type A school buses.
"Many companies have put the brakes on new spending until the economy shows some signs of recovery," said Scott T. Harrison, Azure Dynamics Chief Executive Officer. "But that hasn't dimmed their level of interest in our products. We continue to work with existing customers to fulfill orders and we're talking to new prospects virtually every day to educate them on what our technology can do for their operations.
"We're seeing genuine enthusiasm for our value proposition and we're confident that once the government stimulus funds kick in and the economy shows some positive momentum, these companies will be ready to place orders with us," Harrison said. "As a result we believe our sales will be up again this year as they were last."
Revenue for the first quarter of 2009 totaled $0.6 million compared to $0.4 million in the first quarter of 2008. The higher revenue in the current quarter is attributable to the sale of one Azure Citibus(TM) shuttle bus recorded in 2008 compared to six Balance(TM) Hybrid Electric systems and one LEEP Freeze system recorded in 2009. Net loss for the first quarter of 2009 was $7.4 million, or $(0.02) cents per share, compared to a loss of $7.9 million or $(0.03) cents per share in the first quarter of 2008.
The Company's engineering, operations and product development expenses for the quarter totaled $3.8 million (including $1.2 million in product development costs), compared to $4.7 million for the same period in 2008 (including $2.4 million in product development costs). During the first quarter, the Company continued to focus on the development of its Balance(TM) Hybrid Electric program and component development, as well as ongoing production activities associated with the Series Hybrid shuttle buses and electric components.
As of March 31, 2009, the Company's net cash and cash equivalents totaled $7.9 million, and working capital totaled $13.1 million, compared to cash and cash equivalents of $13.7 million, and working capital of $25.1 million, as at March 31, 2008, and cash and cash equivalents of $13.8 million, and working capital of $19.8 million, as at December 31, 2008.