Amerigon Reports Third-Quarter, Nine-Month Results
3 November 1998
Amerigon Reports Third-Quarter, Nine-Month Results
IRWINDALE, Calif.--Nov. 3, 1998--
-- Selected by a Tier 1 Automotive Supplier to Provide Climate
Control Seat(tm)(ccs(tm)) Components for a 2000 Model Year Luxury
Vehicle.
-- Company in Negotiations With U.S. and Foreign Carmakers Regarding
Potential Orders for the CCS(tm) System.
-- Successfully Completes Phase 2 of AmeriGuard(tm) Backup Warning
System in New Mexico.
Amerigon Incorporated. , a development stage company, today announced results for its third quarter and nine months ended September 30, 1998.
For the third quarter, the Company reported a net loss of $1.72 million or $0.18 per share, compared to a year earlier when it posted net earnings of $0.68 million, or $0.07 per share, including a $2.36 million gain on the disposal of assets.
Revenue declined to $284,000 from $399,000 in 1997.
For the first nine months of 1998 Amerigon reported a net loss of $5.25 million, or $0.55 per share. A year earlier, the Company had a net loss of $3.64 million or $0.43 per share, including the $2.36 million third quarter gain. Revenue for the nine months totaled $0.65 million, down from $1.15 million a year earlier.
Commenting on the third quarter, Amerigon President and Chief Operating Officer Richard A. Weisbart said, "The quarter was an exciting period for us. We continue to invest heavily in our proprietary Climate Control Seat(tm) System as we prepare for future production. During the quarter, Johnson Controls selected Amerigon to supply its CCS(tm) System to be installed in seats for a major North American auto manufacturer, starting in the 2000 model year. This is particularly significant to us because it represents the first automotive seat supplier to integrate our proprietary technology into a production model. We believe this will lead to successes with other customers."
Weisbart also said, "We also continued a high level of investment in follow-up and pre-production work related to other major automotive companies in North America, Europe and Japan regarding the possible introduction of the CCS(tm) system in future automotive platforms."
"Development spending also remained high for our proprietary AmeriGuard(tm) Radar Systems. The New Mexico State Highway and Transportation Department (NMSHTD) successfully completed the evaluation of Phase 2 field trials of a backup warning system," Weisbart said. The system warns vehicle operators of obstacles behind their vehicles while backing up.
According to the NMSHTD, operator response from the 16-week trial was highly favorable. The three-phase project involves the design, installation and field testing of a backup warning system using AmeriGuard(tm) sensors on heavy highway equipment for New Mexico's Highway and Transportation Department.
Amerigon, an emerging player in the global automotive industry, develops and markets proprietary high-technology products for the automotive OEM. In addition to the CCS(tm) system, the Company's products include its proprietary AmeriGuard(tm) Radar System to extend the driver's field of view in such vehicle applications as enhanced parking aids, backup warning systems, and side object detection.
This release contains forward-looking statements (within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. Such statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," "estimate," "anticipate," "continue," or similar terms, variations of such terms or the negative of such terms. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward looking statements, including, without limitation, demand for the Company's products, consumer acceptance and performance of the Company's products, uncertainty in the development of high technology products, the Company's ability to obtain additional financing, risks and delays in obtaining customer orders, technological change, competition and other risks and uncertainties that are detailed in the Company's Annual Report on Form 10K and other reports filed by it with the Securities and Exchange Commission.
AMERIGON INCORPORATED
(A Development Stage Enterprise)
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
From
April 23,
Three Months Nine Months 1991
Ended Ended (inception)
Sept. 30, Sept. 30, to Sept. 30,
1997 1998 1997 1998 1998
Revenues:
Product $ -- $ 11 $ -- $ 18 $ 18
Development
contracts and
related
grants 399 273 1,134 631 17,841
Grants -- -- 12 -- 6,183
Total revenues 399 284 1,146 649 24,042
Costs and expenses:
Product -- 13 -- 24 24
Direct development
contract and
related grant
costs 536 -- 2,424 -- 20,904
Direct grant
costs -- -- 28 -- 4,757
Research and
development 591 1,119 1,303 3,271 14,130
Selling, general
and
administrative,
including
reimbursable
expenses 1,091 885 3,280 2,855 21,113
Total costs
and expenses 2,218 2,017 7,035 6,150 60,928
Operating loss (1,819) (1,733) (5,889) (5,501) (36,886)
Interest income 131 47 346 221 1,264
Interest expense -- -- (117) -- (282)
Gain on disposal
of assets 2,363 (29) 2,363 33 2,396
Net income
(loss) before
extraordinary
items $ 675 ($1,715) ($3,297) ($5,247) ($33,508)
Extraordinary
loss from
extinguishment
of indebtedness -- -- (340) -- (340)
Net income
(loss) before
extraordinary
items $ 675 ($1,715) ($3,637) ($5,247) ($33,848)
Basic and
diluted net
income (loss)
per share
before
extraordinary
item $0.07 ($0.18) ($0.39) ($0.55)
Basic and
diluted net
income (loss)
per share $0.07 ($0.18) ($0.43) ($0.55)
Weighted average
number of
shares
outstanding 9,543 9,550 8,536 9,550