ZAP Power Systems Reports Sales Increase of 115% for Fiscal 1998
19 April 1999
ZAP Power Systems Reports Sales Increase of 115% for Fiscal 1998
SEBASTOPOL, Calif.--April 19, 1999--ZAP Power Systems (OTC BB:ZAPP) today reported its audited financial results for the fiscal year ended December 31, 1998.Net sales for the year ended December 31, 1998 were $3,518,600 compared to $1,640,200 in the prior year, an increase of $1,878,400 or 115%. International sales for 1998 increased $520,500 over 1997 levels as new dealers acquired interest in selling ZAP products overseas.
Net loss for fiscal 1998 was $1,109,400, down from $1,409,300 in 1997, a decrease of $299,900 or 21%. The improvement was primarily attributed to the Company's marketing campaign, which generated greater sales and supported higher prices for specialty products, as well as its cost cutting initiatives, designed to provide manufacturing and personnel efficiencies to maximize gross profit margin and minimize net loss. Gross profit increased as a percentage of net sales, to 32% from 22%.
"ZAP's marketing in 1998 has achieved a breakthrough year in terms of sales," said ZAP president Jim McGreen. "We are already seeing continuing sales growth in the first quarter of 1999, particularly with our zapbikes.com Internet shopping mall, and looking forward to opening more of our ZAP franchise stores this spring."
In addition to substantial growth in sales in fiscal 1998 attributed to the ZAPPY, ZAP enjoyed increases in sales to overseas distributors in the United Kingdom, France, Switzerland, Uruguay and Portugal. Direct sales also increased through the Internet. The company increased its marketing in several areas, including a strategy of opening "ZAP Outlet Store" franchises, as well as retail dealers of bicycles and motorcycles, rental operations and direct sales to law enforcement agencies.
Recent stock placements totaling $2.7 million in capital from a fund managed by Ridgewood Power Corporation, from New York investment banker Preferred Capital, and from shares sold by the Company will allow the company to further expand these markets.
ZAP Power Systems and Subsidiary
Consolidated Balance Sheet
December 31, 1998
Year ended
December 31, 1998
ASSETS
Cash and cash equivalents $ 475,300
Total current assets $1,490,800
Total assets $1,759,700
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $1,362,200
Long-term debt $ 11,200
Total liabilities and stockholders' equity $1,759,700
ZAP Power Systems and Subsidiary
Consolidated Statements of Operations
For the years ended December 31, 1998 and 1997
Year Ended December 31,
1998 1997
Net sales $ 3,518,600 $ 1,640,200
Net loss $(1,109,400) $(1,409,300)
Net loss per common share
Basic $ (0.42) $ (0.62)
Diluted $ (0.42) $ (0.62)
Weighted average of common
Shares outstanding 2,614,563 2,289,165
ZAP is a publicly owned company, whose stock trades over the counter under the symbol ZAPP. For more information on ZAP, its franchises or for ordering an electric vehicle, go to zapbikes.com.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.