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UQM Technologies Reports First Quarter Operating Results

LONGMONT, Colo.--UQM Technologies, Inc. (NYSE Amex: UQM), a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2010. Operations for the first quarter resulted in a net loss of $486,870 or $0.01 per common share on total revenue of $2,555,324 versus a net loss of $629,116 or $0.02 per common share on total revenue of $2,129,319 for the first quarter last year.

“During the first quarter we continued to see improvement in our business driven by strong demand for our propulsion system products from customers worldwide. In addition to growing product sales revenue by 31 percent, we increased our product gross profit margins to nearly 38 percent, which resulted in a 23 percent reduction in our net loss for the quarter. In addition, during the quarter we saw an increase in shipments to Eaton Corporation of DC-to-DC converters used on medium-duty hybrid electric trucks sold by Freightliner, Peterbilt and International Truck,�?? said William G. Rankin, UQM Technologies’ President and Chief Executive Officer. “We are continuing to execute on our planned launch of volume production for CODA Automotive this fall. We completed the relocation of our corporate headquarters and manufacturing operations to our recently acquired 130,000-square-foot facility in Longmont last week and are continuing the installation of production equipment on our high volume motor and motor controller lines.�??

“Shortly after the end of the quarter, we announced an important order from an international automaker for over 50 UQM® PowerPhase® systems as part of their fleet build and product development activities on a vehicle targeted for introduction in 2012. This order is a significant development, demonstrating our ability to satisfy the demanding requirements for system performance, safety, quality, availability and price by established automobile companies and confirms our position as a leading supplier of electric propulsion systems for the developing electric drive vehicles market,�?? added Mr. Rankin

“Net loss for the first quarter ended June 30, 2010 decreased 23 percent due to improved gross profit margins, 20 percent growth in total revenue and a distribution arising from the conclusion of a former customer’s bankruptcy proceedings. Gross profit margins for the quarter rose to 37.7 percent versus 28.4 percent for the comparable quarter last year, resulting in a 59.6 percent increase in gross profit contribution dollars for the quarter to $964,072 from $604,161 for the comparable quarter last fiscal year. The increase in gross profit dollars funded nearly all of the expansion of our production engineering activities for CODA Automotive and other customers, which nearly doubled versus same quarter last fiscal year,�?? said Donald A. French, UQM Technologies’ Treasurer and Chief Financial Officer. “As of June 30, 2010, potentially billable production engineering costs under our $45.1 million DOE Assistance Award totaled approximately $2.0 million. We expect this item to be recorded as a reduction in operating expenses at the time the Defense Contract Audit Agency completes an audit of our accounting system required under our award with the DOE.�??

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter. To attend the conference call, please dial 1-866-212-4491 approximately ten minutes before the conference is scheduled to begin and provide confirmation code “UQM�?? to access the call. International callers should dial 1-416-800-1066. 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 Time today. To access the playback call 1-866-583-1035 and enter replay code 3084960#. International callers should dial 011-44-208-196-1998.

The Company’s Annual Meeting of Shareholders will be held next Wednesday, August 4, 2010 beginning at 10:00 a.m. Denver time at our new facility located at 4120 Specialty Place, Longmont, Colorado 80504. Shareholders and members of the press are cordially invited to attend. A continental breakfast will be available beginning at 9:00 a.m. and tours of the facility will be conducted following the conclusion of the meeting. Directions to our facility are available on our website and in our proxy statement for the meeting.

UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, 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, plug-in hybrid electric and fuel cell electric vehicles, under-the-hood power accessories and other vehicle auxiliaries. The Company’s headquarters, engineering and product development center, and manufacturing operation are located in Longmont, 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, future financial results and revenue growth, orders to be received under our supply agreement with CODA, our ability to successfully expand our manufacturing facilities, the timing and success of the DCAA audit of the Company’s accounting system and release of conditional funds under the DOE award, and the continued growth of the electric-powered vehicle industry. 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 today, 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, 2010

 

March 31, 2010

Assets

Current assets:
Cash and cash equivalents $ 5,876,018 17,739,600
Short-term investments 20,740,510 12,409,183
Accounts receivable 2,502,484 1,695,638

Costs and estimated earnings in excess of billings on uncompleted contracts

932,400 680,746
Inventories 1,461,487 1,291,326
Prepaid expenses and other current assets   285,673   140,285  
Total current assets   31,798,572   33,956,778  
 
Property and equipment, at cost:
Land 1,825,968 1,825,968
Building 6,085,857 5,402,176
Machinery and equipment   4,861,040   4,524,188  
12,772,865 11,752,332
Less accumulated depreciation   (4,231,394 ) (4,090,962 )
Net property and equipment   8,541,471   7,661,370  
 

 

Patent and trademark costs, net of accumulated amortization of $803,186 and $789,325

408,971 420,441
 
Other assets   624,940   643,984  
 
Total assets $ 41,373,954   42,682,573  
 
 
June 30, 2010

 

March 31, 2010

Liabilities and Stockholders’ Equity

 

Current liabilities:
Accounts payable $ 824,382 1,421,779
Other current liabilities 769,119 1,049,243

Short-term deferred compensation under executive employment agreements

437,255 432,554

Billings in excess of costs and estimated earnings on uncompleted contracts

  14,344   51,552  
Total current liabilities   2,045,100   2,955,128  
 
Long-term deferred compensation under executive employment agreements   729,225   722,862  
 
Total liabilities   2,774,325   3,677,990  
 
Commitments and contingencies
 
Stockholders’ equity:

Common stock, $.01 par value, 50,000,000 shares authorized; 35,947,738 and 35,946,738 shares issued and outstanding

359,477 359,467
Additional paid-in capital 112,293,133 112,211,227
Accumulated deficit   (74,052,981 ) (73,566,111 )
 
Total stockholders’ equity   38,599,629   39,004,583  
 
Total liabilities and stockholders’ equity $ 41,373,954   42,682,573  
 

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations (unaudited)

 
Quarter Ended June 30,
2010   2009
Revenue:
Contract services $ 302,228 412,882
Product sales   2,253,096   1,716,437  
  2,555,324   2,129,319  
 
Operating costs and expenses:
Costs of contract services 189,316 296,505
Costs of product sales 1,401,936 1,228,653
Research and development 119,319 186,146
Production engineering 803,634 426,435
Selling, general and administrative 822,841 639,778
Gain on sale of long-lived asset   (1,004 ) -  
  3,336,042   2,777,517  
 
Loss before other income (expense) (780,718 ) (648,198 )
 
Other income (expense):
Interest income 28,708 15,285
Interest expense - (7,203 )
Other   265,140   11,000  
  293,848   19,082  
 
Net loss $ (486,870 ) (629,116 )
 
Net loss per common share - basic and diluted $ (0.01 ) (0.02 )
 

Weighted average number of shares of common stock outstanding -basic and diluted

  35,947,430   26,753,076  
 

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended June 30, 2010:

      Power  

Technology

Products

Total

Revenue $ 1,871,030 684,294 2,555,324
Interest income $ 28,183 525 28,708
Interest expense $ - - -
Depreciation and amortization $ (105,294 ) (55,474 ) (160,768 )
Segment loss $ (356,520 ) (130,350 ) (486,870 )
Total assets $ 32,441,822 8,932,132 41,373,954
Expenditures for long-lived segment assets $ (139,994 ) (2,280,993 ) (2,420,987 )
 

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended June 30, 2009:

      Power      

Technology

Products

Total

Revenue $ 1,608,387 520,932 2,129,319
Interest income $ 14,571 714 15,285
Interest expense $ - (7,203 ) (7,203 )
Depreciation and amortization $ (88,166 ) (52,873 ) (141,039 )
Impairment of inventories $ (3,620 ) - (3,620 )
Segment loss $ (551,698 ) (77,418 ) (629,116 )
Total assets $ 8,170,182 3,282,093 11,452,275
Expenditures for long-lived segment assets $ (35,985 ) - (35,985 )