Amerigon Reports First Quarter Results
15 May 2000
Amerigon Reports First Quarter Results; Comments on Shipments of Climate Control Seat(TM) (CCS(TM)) System
IRWINDALE, Calif., May 15 Amerigon Incorporated
today announced results for its first quarter ended March 31,
2000, the first full quarter of commercial production in the Company's
history. According to Amerigon President and CEO Richard A. Weisbart the
strong demand for the Company's Climate Control Seat(TM) (CCS(TM)) system as
an option in the Lincoln Navigator Sports Utility Vehicle (SUV) continues to
grow. The Navigator is the initial automotive platform to use the Company's
proprietary CCS system.
First quarter 2000 revenue increased significantly to $1.0 million,
including $954,000 of product revenue principally from shipments of CCS for
use as an option in the Lincoln Navigator SUV. This compares to revenue in
the prior year's first quarter of $220,000, which included product revenue of
$17,000. The net loss for this year's first quarter was $2.1 million, or a
$1.08 net loss per share, compared to a net loss of $1.6 million, or a
$0.86 net loss per share, in the prior year's first quarter.
The increase in this year's first quarter net loss, when compared to the
year-earlier period, was primarily due to an increase in Research and
Development and SG&A expense associated with both the launch of CCS for the
Lincoln Navigator and engineering support for future CCS programs. As
expected, gross profit margins for this year's first quarter reflected the
early stages of production ramp up of CCS and they are expected to improve in
the future as volume increases through the introduction of CCS in additional
automotive platforms.
During the first quarter, Amerigon entered into a definitive agreement
with Ford for the use of Amerigon's proprietary CCS system, whereby Ford will
exclusively use the CCS system for heated and cooled or heated and ventilated
seats for a period of five years. The Company believes that Ford's commitment
to use the CCS system exclusively is an important endorsement by a world
leader in the automotive industry. Amerigon will continue to market CCS to
seat suppliers and other vehicle manufacturers worldwide.
Weisbart commented, "The first quarter of 2000 marks an important point in
the Company's history as we continue to lay the foundation for future growth.
We have seen strong customer demand for the CCS system in the Lincoln
Navigator. Ford has expressed excitement at being the first company to employ
our pacesetting CCS technology, and is committed to employing CCS on a much
broader scale. These events will help set the stage for continued expansion
into other automotive platforms in North America, as well as in Europe and
Asia."
Amerigon is actively working with more than 20 automotive platform teams
to offer its unique comfort option. "We believe we are poised to capture an
increasing amount of business and have the manufacturing capability in place
to handle the demand for CCS in the Navigator and to supply systems for future
automotive platforms we hope to be solidifying over the next 12 months,"
Weisbart said.
In late April 2000, CCS was featured in the Lincoln Mercury booth at the
New York International Auto Show, the largest consumer auto show in North
America. CCS was shown and demonstrated by Lincoln Mercury in a special
exhibit featuring the Navigator, presenting an opportunity for Amerigon to
potentially expose thousands of car buyers to its unique CCS system.
"Additionally," Weisbart continued, "we continue to be encouraged by the
progress we are making towards wide-spread commercialization of our
AmeriGuard(TM) radar systems for backup warning and blind spot detection in
trucks, buses and automobiles. The ongoing field-test and joint development
effort with the New Mexico State Highway and Transportation Department are
producing very positive results, and we hope to be able to introduce a version
of this product to the truck market in the third quarter of this year."
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
2000 1999
Revenues:
Product $954 $17
Development contracts 80 203
Total revenues 1,034 220
Costs and expenses:
Product 852 32
Development contracts 274 447
Research and development 647 534
Selling, general and administrative 1,320 860
Total costs and expenses 3,093 1,873
Operating Loss (2,059) (1,653)
Interest income 10 16
Interest expense (15) (2)
Net loss $(2,064) $(1,639)
Basic and diluted net loss per share $(1.08) $(0.86)
Weighted average number of common shares
outstanding 1,912 1,910
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
(Unaudited)
March 31, December 31,
ASSETS 2000 1999
Current Assets:
Cash & cash equivalents $1,104 $1,647
Accounts receivable less allowance of $58 779 282
Inventory 477 490
Prepaid expenses and other assets 426 251
Total current assets 2,786 2,670
Property and equipment, net 978 1,051
Deferred exclusivity fee 1,148
Total Assets $4,912 $3,721
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $766 $592
Accrued liabilities 1,009 597
Bridge loan payable less debt discount of $80 1,420 --
Total current liabilities 3,195 1,189
Long term portion of capital lease 9 11
Total liabilities 3,204 1,200
Mandatorily redeemable preferred stock:
Series A - Preferred Stock - no par value;
redeemable and convertible; 9 shares authorized,
none and 9 issued and outstanding at March 31,
2000 and December 31, 1999; liquidation
preference of $9,315 -- 8,267
Shareholders' equity (deficit):
Preferred stock:
Series A - no par value; convertible; 9
shares authorized, 9 and none issued and
outstanding at March 31, 2000 and December 31,
1999; liquidation preference of $9,315 8,267 --
Common stock;
Class A - no par value; 20,000 shares
authorized, 1,914 and 1,910 issued and
outstanding at March 31, 2000 and
December 31, 1999 28,161 28,149
Class B - no par value; 600 shares authorized,
none issued and outstanding -- --
Paid-in capital 11,326 10,059
Deferred compensation (102) (74)
Accumulated deficit (45,944) (43,880)
Total shareholders' equity (deficit) 1,708 (5,746)
Total liabilities and shareholders'
equity (deficit) $4,912 $3,721