IMPCO Reports Record Quarter Revenues
30 August 2000
IMPCO Reports Record Quarter Revenues; Heavy Investment in Fuel Cell Research and Development IMPCO TECHNOLOGIES LOGO IMPCO Technologies logo. (PRNewsFoto)[DM] CERRITOS, CA USA 09/21/1999
CERRITOS, Calif., Aug. 30 IMPCO Technologies, Inc.
("IMPCO"), , today reported record revenues for its first
quarter ended July 31, 2000.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990921/IMPCOLOGO )
For the first quarter of Fiscal 2001, ended July 31, 2000, IMPCO reported
a net loss of $608,000 or 0.07 cents per share on revenues of $29.3 million, a
3% revenue increase from the prior year's first quarter results. This
compared to net income of $1.6 million or 18 cents per diluted share for the
first quarter in fiscal 2000 on revenues of $28.4 million. During the current
year quarter IMPCO invested a record $6.0 million (20% of revenue) in research
and development, nearly a 100% increase from fiscal 2000 first quarter levels.
Substantial portions of the increase were associated with IMPCO's expansion of
engineering facilities and staff to support current and anticipated fuel cell
and alternative fuel OEM programs. IMPCO anticipates future increases in
research and development as it strengthens its technology and market
leadership position in fuel storage, metering and electronic control systems
in the rapidly emerging Fuel Cell Industry.
First quarter product revenues, compared to the prior year first quarter,
decreased $458,000 or 1.7%. This decrease is primarily due to an end in the
short-term increase in small engine sales related to Y2K and a slow down in
after market automotive sales in Mexico. Automotive OEM sales reached
$4.3 million, a 10% increase over the first quarter in the prior year.
Industrial systems sales remained strong with the Industrial Engine Systems
business growing 28% compared to the first quarter last year. Material
handling sales grew 24%.
Robert Stemmler, IMPCO's Chairman and CEO, stated that "The recent
successful follow-on equity offering, lead managed by Robertson Stephens and
co-managed by CIBC World Markets and FAC/Equities, provided the Company
$53.5 million in capital and has allowed us to expand and accelerate our
research and development in fuel cell propulsion technologies as evidenced in
the current quarter R&D and other operating expenditures. We have also opened
additional facilities in Lake Forest, California and Sterling Heights,
Michigan to expand our testing capabilities and vehicle integration capacity
to meet anticipated increased OEM activity in developing alternate fuel and
fuel cell vehicles. The OEM interest in IMPCO's fuel storage and delivery
systems remains robust as evidenced by our recent announcement with Hyundai to
provide fuel storage and delivery for their fuel cell powered Santa Fe SUV,
which will be demonstrated this fall in conjunction with the California Fuel
Cell Project. Additionally, we have extended our alternative fuel OEM
production program with GM to continue past the middle of the decade. We are
aggressively pursuing alternative fuel and fuel cell related programs with
other OEMs at the present time."
Other significant recent developments have included:
-- On August 24, 2000 IMPCO announced the appointment of JD Power III to
the Board of Directors of IMPCO. Mr. Power is the Chairman of J.D.
Power & Associates, one of the most prestigious marketing information
firms in the World.
-- On June 12, 2000 IMPCO announced that it had formed a strategic
technology alliance with NASA Space Shuttle rocket booster
manufacturer, Thiokol Propulsion, Alcoa Industrial Components Group, a
subsidiary of Alcoa, Inc., . The alliance allows IMPCO to
advance the commercialization of Thiokol's unique composite
conformable hydrogen fuel storage technology for the emerging
automotive fuel cell markets and to utilize their strong missile based
hydrogen fuel expertise.
-- On June 5, 2000 IMPCO disclosed that it had been awarded a
$2.6 million contract from the Department of Energy to design,
prototype and produce ultra-lightweight production hydrogen tanks for
demonstration on two vehicle programs in association with the DOE's
Lawrence Livermore National Laboratory.
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Three months ended July 31, 2000 and 1999
July 31, July 31,
2000 1999
(Unaudited) (Unaudited)
Revenue:
Product sales $26,599,359 $27,057,494
Contract revenue 2,668,658 1,362,460
Net revenue 29,268,017 28,419,954
Costs and expenses:
Cost of product sales 17,993,948 17,814,509
Research and development expense 5,997,562 3,014,773
Selling, general and administrative expense 5,624,507 4,939,711
Total costs and expenses 29,616,017 25,768,993
Operating (loss) income (348,000) 2,650,961
Interest expense 541,428 231,710
(Loss) income before income taxes, minority
interest in income of consolidated subsidiaries
and dividends (889,428) 2,419,251
Income tax (benefit) expense (399,763) 774,160
Minority interest in income of consolidated
subsidiaries 118,289 91,375
Net (loss) income applicable to common stock $(607,954) $1,553,716
Net (loss) income per share:
Basic $(0.07) $0.18
Diluted $(0.07) $0.18
Number of shares used in per share calculation:
Basic 8,920,914 8,429,992
Diluted 8,920,914 8,781,530