Unique Mobility, Inc., Announces Q2 Results
14 November 1997
Unique Mobility, Inc., Announces Second Quarter Results;
Operations Reflect Ramp-Up of Manufacturing Capability
GOLDEN, Colo., Nov. 14 -- Unique Mobility, Inc. (Amex: UQM)
reported an operating loss for the quarter ended September 30, 1997, of
$609,099 or $0.04 per share on total revenue of $792,629. This compares with
an operating loss of $634,101 or $0.05 per share on total revenue of $723,274
for the comparable prior year quarter.
"The Company continued to experience solid demand in its contract services
business throughout the second quarter; however, contract services revenue
levels during the quarter were adversely impacted by the Company's decision to
assign otherwise billable engineering personnel to manufacturing launch
activities for unique Power Products, Inc.," said Donald A. French, Unique's
Chief Financial officer.
Unique Power Products is a wholly-owned subsidiary of Unique formed
earlier this year to perform volume manufacturing operations of proprietary
products developed by Unique.
"We are committed to establishing volume manufacturing operations as soon
as practicable and this commitment was evidenced in the second quarter by our
cash investment in Unique Power Products of $1.5 million and the application
of these funds and Unique personnel to facility and production line layout,
tooling and equipment purchases and ISO 9000 quality certification activities
which are all well underway. Production launch costs by Unique Power Products
contributed $99,158 to consolidated operating losses during the quarter and
are expected to rise moderately through the end of the current fiscal year,"
added Mr. French.
Mr. French continued, "Manufacturing launch activities at Taiwan UQM,
Unique's 39 percent owned Taiwan-based manufacturing joint venture company,
are substantially complete with the recent completion of the volume
manufacturing line and the shipment of pilot production sets of starters and
alternators to Kwang Yang Motor Co., Ltd. We expect commercial production
operations to ramp up by year-end following quality certification from KYMCO
on the pilot production units."
The Company's operating loss for the six months ended September 30, 1997,
was $854,448 or $0.06 per share on total revenue of $2,049,791 versus a loss
of $1,267,599 or $0.11 per share on total revenue of $1,358,861 for the
comparable period last year.
During the second quarter the Company completed a license and supply
agreement with Invacare Corporation, the world's leading manufacturer and
distributor of home health care products and mobility product for people with
disabilities, to manufacture and supply motors for a new power chair currently
under development by Invacare.
Other recent developments include a strategic alliances with EV Global
Motors Company, headed by Lee A. Iacocca, ex-chairman of Chrysler Corporation,
to develop electric drive systems for bikes, scooters and other light
vehicles. Under the alliance, EV Global acquired a 12 percent stake in Unique
and Mr. Iacocca joined Unique's board of directors.
Taiwan UQM Electric Co., Ltd., based in Taipei, Taiwan ROC, is a licensee
of the Company's proprietary technology and a manufacturer of electric motors
and electronic controls. Taiwan UQM is a joint venture of Taiwan-based Kwang
Yang Motor Co., Ltd. (39%), Turn-Luckily Technology Co., Ltd. (27%) and Unique
(39%).
Unique Mobility, Inc. is one of the world's leading developers of energy
efficient electric and hybrid electric vehicle systems. It is a Golden,
Colorado, based engineering concern and manufacturer of high efficiency
permanent magnet motors and controls for automotive, aerospace and industrial
applications.
Quarter Ended Six Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenue:
Contract services $ 673,759 539,193 1,703,370 983,474
Product sales 118,870 184,081 346,421 375,387
792,629 723,274 2,049,791 1,358,861
Cost and Expenses:
Costs of revenue 806,635 492,445 1,844,408 985,969
Research
and development 167,899 484,366 256,737 880,488
General
and administrative 371,551 265,850 688,311 531,654
Other 55,643 114,714 114,783 228,349
1,401,728 1,357,375 2,904,239 2,626,460
Net loss $(609,099) (634,101) (854,448) (1,267,599)
Net loss per
common share $(.04) (.05) .06 (.11)
Weighted average number
of shares of common
stock outstanding 13,701,823 11,246,O61 13,393,582 11,155,189
SOURCE Unique Mobility, Inc.