IMPCO Reports Second Quarter Results
6 December 2000
IMPCO Reports Second Quarter Results - Automotive OEM And Fuel Cell Division Posts 23% Revenue Gain
CERRITOS, Calif., Dec. 6 IMPCO Technologies
today reported results for its second quarter and six-month period ended
October 31, 2000.
For the second quarter of fiscal 2001 IMPCO reported a net loss of
$1.38 million or 13 cents per share on revenues of $25.4 million. This
compared to net income of $1.5 million or 17 cents per share for the second
quarter of fiscal year 2000 on revenues of $27.4 million. During the current
quarter, IMPCO invested a record $7.2 million (28.6% of revenue) in research
and development, a 100% increase over the second quarter of fiscal year 2000
level. The increased expenditures were associated with the expansion of
engineering facilities and staff to support current and anticipated fuel cell
and OEM programs in fuel storage, metering and electronic control systems.
For the first half of fiscal year 2001, IMPCO reported a net loss of
$1.99 million or 21 cents per share on revenues of $54.6 million. This
compared to net income of $3.06 million or 35 cents per share for the same
period of fiscal year 2000 on revenues of $55.8 million. Research and
development expenses increased by $6.61 million in the comparable six month
period of last year.
The decrease in revenues of $2.0 million and $1.2 million in the second
quarter and first half of fiscal year 2001, respectively, versus the same
periods in the previous year, was primarily due to a tapering off in
aftermarket motor vehicle conversion sales in Mexico and an end to the short
term increase in sales to the small engine gen-set market related to the Y2k
phenomena. The decrease was partially offset by strong Automotive OEM and
Fuel Cell Division product revenues which increased 43% during the second
quarter compared to the same period of the previous year. The Automotive OEM
and Fuel Cell Division experienced revenue growth of over 23% in the second
quarter of this fiscal year versus the same period last year. First half
revenue growth was 29% greater in this fiscal year versus last year.
Mr. Robert M. Stemmler, Chairman and CEO said that the Company's strategy
and plans to establish the leading technology position in fuel storage,
metering and control system products in the fuel cell and alternative fuel
industry is progressing ahead of schedule. He stated that in the past six
months the Automotive OEM and Fuel Cell Division increased its staff by
103 personnel and opened additional facilities in Sterling Heights, Michigan,
and in Irvine and Lake Forest, California, to expand its product development,
testing and vehicle integration capabilities and capacity. He added that the
Company continues to add new development programs with the leaders in its
target markets. Among them; Ford, Xcellsis, Ballard, Hyundai, Toyota, Isuzu,
Mazda and Mitsubishi, in addition to General Motors in the transportation
market, and Honda, Yamaha and Mitsubishi in the power generation market.
Second Quarter Highlights:
Since the release of the first fiscal quarter results, IMPCO has reported
the following achievements:
-- On September 28, 2000 IMPCO disclosed that it was working with four
of the largest engine manufacturers in China to develop spark
ignition alternative fuel versions of their most popular diesel
engines.
-- On November 1, 2000 IMPCO disclosed that it had completed the
development of an advanced hydrogen fuel storage and fuel delivery
system for Hyundai Motor Company's new fuel cell prototype. The
vehicle was displayed at the Grand Opening of the California Fuel
Cell Partnership in Sacramento on November 1, 2000.
-- November 9, 2000 IMPCO disclosed that it had received a follow-on
contract from the Department of Energy, bringing total contract
revenue from DOE to $3.5 million. IMPCO also disclosed that it had
achieved a ratio of 7.5% hydrogen storage to total weight in on-board
fuel storage. A fuel storage system can achieve a 400 mile range at
a total weight below 150 lbs using IMPCO's technology versus over
660 lbs for existing technologies.
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
Three and six months ended October 31, 1999 and 2000
Three Months Ended Six Months Ended
October 31, October 31,
1999 2000 1999 2000
Revenue:
Product sales $24,869,749 $22,656,054 $51,927,243 $49,255,413
Contract revenue 2,487,168 2,695,484 3,849,628 5,364,142
Net revenue 27,356,917 25,351,538 55,776,871 54,619,555
Costs and expenses:
Cost of product
sales 15,845,852 15,866,251 33,660,361 33,860,199
Research and
development
expense 3,617,732 7,243,079 6,632,505 13,240,641
Selling, general
and
administrative
expense 5,144,866 4,985,003 10,084,577 10,609,510
Total costs and
expenses 24,608,450 28,094,333 50,377,443 57,710,350
Operating income
(loss) 2,748,467 (2,742,795) 5,399,428 (3,090,795)
Interest expense
(income) 346,001 (293,979) 577,711 247,449
Income (loss) before
income taxes,
minority interest
in income of
consolidated
subsidiaries and
dividends 2,402,466 (2,448,816) 4,821,717 (3,338,244)
Income tax expense
(benefit) 768,789 (1,102,446) 1,542,949 (1,502,209)
Minority interest in
income of
consolidated
subsidiaries 130,999 35,461 222,374 153,750
Net income (loss)
applicable to common
stock $1,502,678 $(1,381,831) $3,056,394 $(1,989,785)
Net income (loss)
per share:
Basic $0.18 $(0.13) $0.36 $(0.21)
Diluted $0.17 $(0.13) $0.35 $(0.21)
Number of shares
used in per share
calculation:
Basic 8,442,818 10,271,056 8,448,349 9,595,984
Diluted 8,874,640 10,271,056 8,837,840 9,595,984