ZAP Bike Sales Accelerate 152% For First Quarter of Fiscal 1999
14 May 1999
ZAP Bike Sales Accelerate 152% For First Quarter of Fiscal 1999SEBASTOPOL, Calif.--May 14, 1999--Electric vehicle manufacturer ZAP Power Systems (OTC BB:ZAPP) today reported its unaudited financial results for the first quarter of fiscal year 1999.
Net sales for the quarter ended March 31, 1999 were $1,164,100 compared to $461,200 in the prior year, an increase of $702,900 or 152%. Net loss for the same period was $131,600 compared to $160,400 for the first quarter of fiscal 1998, a decrease of 18%. Of the losses in 1999, $74,700 was interest expenses associated with a convertible debenture. Net sales for all of fiscal 1998 were $3,518,600 compared to $1,640,200 in fiscal 1997, an increase of $1,878,400 or 115%.
"ZAP's record sales this winter go against the seasonality that is typical for recreational products. With 115% growth in 1998 and 152% so far in 1999, we believe that demand for ZAP electric bike and scooters is accelerating," said ZAP managing director Gary Starr.
"It's promising to note that gross margins in the first quarter of '99 were 35% compared to 32% for all of last year. Increased demand is helping us source lower cost components. Our strategy for marketing electric vehicles through the Internet and franchise stores appears to be gaining momentum."
In April, the company announced it received a total of $2,707,712 in new capital from a fund managed by Ridgewood Power Corporation, from Preferred Capital, and from other sources. ZAP is a publicly owned company with stock trading under the symbol ZAPP. The company hosts its annual shareholder meeting on Sunday, May 16 in Sebastopol. For additional information go to http://www.zapbikes.com, or call 800/251-4555.
ZAP Power Systems and Subsidiary Consolidated Balance Sheet March 31, 1999 Three months ended March 31, 1999 1998 NET SALES $ 1,164,100 $ 461,200 COST OF GOODS SOLD 756,100 269,600 GROSS PROFIT 408,000 191,600 OPERATING EXPENSES Selling 200,100 159,000 General and administrative 218,200 162,500 Research and development 47,600 32,300 ------- ------- 465,900 353,800 LOSS FROM OPERATIONS (57,900) (162,200) OTHER INCOME (EXPENSE) Interest expense (74,700) (2,700) Other 1,000 4,500 ------- ------- (73,700) 1,800 NET LOSS (131,600) (160,400) NET LOSS PER COMMON SHARE, BASIC AND DILUTED (0.05) (0.06) WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING 2,833,180 2,558,000
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.