Amerigon Reports 4th Quarter, Full Year Results
3 February 1999
Amerigon Reports 4th Quarter, Full Year Results; Company Achieves Production Preparation Milestones
IRWINDALE, Calif.--Feb. 2, 1999--
Q4 Highlights
-- Selected by three European automakers to engineer the CCS(tm)
system into their seats for a possible launch in the 2001 and
2002 model years.
-- Continues negotiations with U.S. and foreign automakers
regarding potential orders for the CCS(tm) system.
-- The New Mexico State Highway and Transportation Department
approves Phase III trials of AmeriGuard(tm) Radar System in
New Mexico.
-- Appoints New York-based Spencer Trask Securities as its
investment banker.
Amerigon Incorporated , a development stage company, today reported results for the fourth quarter and year ended December 31, 1998. The Company effected a one-for-five reverse stock split on January 26, 1999. All references to earnings per share in this press release are to pre-split numbers.
Revenues generated in the fourth quarter of 1998 totaled $122,000, down from $162,000 a year earlier. Losses totaled $2.46 million, or 26 cents per share, compared to losses of $1.78 million, or 19 cents per share, a year earlier.
For the year, the Company posted revenue of $770,000, down from $1.31 million in 1998. For the year, Amerigon reported a net loss of $7.71 million, or 81 cents per share, up from $5.42 million, or 62 cents per share.
Commenting on the fourth quarter, Amerigon President and Chief Operating Officer Richard A. Weisbart said, "Results for the quarter and year were in line with management's expectations. During the quarter, we continued to invest heavily in our proprietary Climate Control Seat(tm) System and our proprietary AmeriGuard(tm) Radar System. We believe this investment is warranted as evidenced by the interest shown by the world's leading automakers."
The Company announced in November that it had been engaged by three leading European automotive companies to integrate the CCS(tm) system into their seats for a possible launch in the 2001 and 2002 model years. The CCS(tm) system is the world's first active temperature control system for motor vehicle seats, offering heating, cooling and ventilation.
In October, the Company announced that Johnson Controls, Inc. had selected Amerigon to supply the CCS(tm) system to be installed in seat platforms of a major North American auto manufacturer, starting in the 2000 model year. That program is continuing to advance as expected.
Amerigon also announced that the New Mexico State Highway and Transportation Department (NMSHTD) has approved Phase III trials of AmeriGuard(tm), the patented backup warning system that places radar technology in the rear reflector and rear turn signal light, alerting operators of potential obstacles. "Based upon the results achieved in New Mexico, we believe that other states and private companies will want to acquire the product in an effort to improve the safety of their heavy equipment fleets," Weisbart said.
The appointment in November of New York-based Spencer Trask Securities was designed to enhance the Company's access to financial markets and strategic investments, helping with its transition into a production entity. Spencer Trask specializes in working with emerging growth companies by providing advisory services relating to strategic planning and business development, as well as financing and traditional investment banking functions.
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, 1991
Three Months Ended Twelve Months Ended (inception)
December 31, December 31, to December 31,
1997 1998 1997 1998 1998
Revenues:
Product $- $- $- $18 $18
Development
contracts and
related grants 147 122 1,281 752 17,963
Grants 15 - 27 - 6,183
Total revenues 162 122 1,308 770 24,164
Costs and expenses:
Product - - - 24 24
Direct development
contract and
related grant
costs 162 - 2,586 - 20,904
Direct grant
costs (3) - 25 - 4,757
Research and
development 769 1,328 2,072 4,598 15,458
Selling, general
and administrative,
including
reimbursable
expenses 1,191 1,273 4,471 4,128 22,386
Total costs and
expenses 2,119 2,601 9,154 8,750 63,529
Operating loss (1,957) (2,479) (7,846) (7,980) (39,365)
Interest income 177 30 477 251 1,294
Interest expense - (10) (71) (10) (292)
Gain on disposal
of assets - - 2,363 33 2,396
Net income
(loss) before
extraordinary
items ($1,780) ($2,459) ($5,077) ($7,706) ($35,967)
Extraordinary
loss from
extinguishment
of indebtedness - - (340) - (340)
Net income
(loss) before
extraordinary
items ($1,780) ($2,459) ($5,417) ($7,706) ($36,307)
Basic and
diluted net
income (loss)
per share before
extraordinary
item ($0.19) ($0.26) ($0.58) ($0.81)
Basic and
diluted net
income (loss)
per share ($0.19) ($0.26) ($0.62) ($0.81)
Weighted average
number of shares
outstanding 9,543 9,550 8,796 9,550