Unique Mobility, Inc. Announces Second Quarter Results
16 November 1998
Unique Mobility, Inc. Announces Second Quarter Results; Revenue Grows to Record Highs Despite Adverse Impact from GM Strike
GOLDEN, Colo., Nov. 16 -- Unique Mobility, Inc. (Amex: UQM)
today reported its financial results for the quarter and six months ended
September 30, 1998.
Revenue for the quarter ended September 30, 1998, was $3,387,794 compared
to $792,629 for the comparable quarter last year. Revenue for the six months
ended September 30, 1998, was $6,240,575 compared to $2,049,791 for the
comparable period last year. The growth in revenue to record highs was driven
by product sales in the Company's electronic and mechanical product segments.
Product sales for the second quarter rose to $2,941,800, nearly a thirty --
fold increase from product sales for the comparable quarter last year. Second
quarter product sales were impacted by approximately $0.6 million due to the
strike against General Motors, but nevertheless were up 15 percent over the
first quarter. For the six months ended September 30, 1998, product sales
were $5,495,247 compared to $346,421 for the comparable period last year.
Operations for the quarter ended September 30, 1998, resulted in a net
loss of $1,422,804 or $0.09 per share compared to a net loss of $609,099 or
$0.04 per share for the quarter ended September 30, 1997. Operations for the
six months ended September 30, 1998, resulted in a net loss of $2,365,056 or
$0.15 per share compared to a net loss of $854,448 or $.06 per share for the
six months ended September 30, 1997.
Results for the quarter and first half were adversely impacted by the loss
of revenue resulting from the GM strike as well as production down time and
relocation costs arising from the relocation of motor and gear operations to
new facilities in Frederick, Colorado.
Commenting on the results, Donald A. French, Treasurer and Chief Financial
Officer, said, "Revenue growth from sales of manufactured products continued
at a record pace during the second quarter. However, both revenue growth and
financial performance for the quarter, and to a lesser extent, the first half,
were adversely impacted by order cancellations and productivity reductions
resulting from the labor strike against General Motors and the relocation of
our motor and gear manufacturing operations. Production of electronic
assemblies for GM has returned to approximately 85 percent of pre-strike
levels and our Frederick, Colorado, manufacturing facility is fully back on
line. The difficulties experienced in the second quarter should have only a
nominal impact on third quarter operations."
Unique Mobility, Inc. is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies, electronic assemblies and wire
harness assemblies for the aerospace, telecommunications, automotive, medical
and industrial markets. The Company is headquartered in Golden, Colorado,
with manufacturing facilities in Frederick, Colorado (electric motors and
precision gears) and St. Charles, Missouri (electronic assemblies and wire
harnesses).
This release may contain forward-looking statements that involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the Risk Factors section of the
Registration Statement on Form S-3 (File No. 333-52861) filed by Unique with
the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including Unique's history of operating losses, its ability to obtain
additional financing, competition, the Company's ability to integrate acquired
businesses into existing operations, Unique's ability to protect its
proprietary information, and Unique's limited experience in manufacturing
processes and procedures and marketing and distribution.
Quarter Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenue:
Contract services 445,994 673,759 745,328 1,703,370
Product Sales 2,941,800 118,870 5,495,247 346,421
3,387,794 792,629 6,240,575 2,049,791
Operating costs and expenses:
Costs of contract services 437,279 708,279 698,070 1,578,270
Costs of product sales 2,975,567 98,356 5,150,517 266,138
Research and development 173,274 167,899 450,722 256,737
General and administrative 884,931 369,320 1,732,136 692,116
Depreciation and
amortization 144,340 52,869 265,627 104,593
4,615,391 1,396,723 8,297,072 2,897,854
Operating loss (1,227,597) (604,094) (2,056,497) (848,063)
Other income (expense), net (195,207) (5,005) (308,559) (6,385)
Net loss (1,422,804) (609,099) (2,365,056) (854,448)
Net loss per common share $(.09) (.04) (.15) (.06)
Weighted average number of
share of common stock
outstanding 15,925,669 13,701,823 15,834,86413,393,582