UQM TECHNOLOGIES, INC. (Amex: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and six months ended September 30, 2006. Continuing operations for the second quarter resulted in a loss of $864,930 or $0.04 per common share on total revenue of $1,614,218 versus a loss from continuing operations of $543,438 or $0.02 per common share on total revenue of $884,000 for the second quarter last year. Net loss for the quarter was $879,570 or $0.04 per common share versus a net loss of $576,708 or $0.02 per common share for the comparable quarter last year.
Continuing operations for the six months ended September 30, 2006 resulted in a loss of $1,650,614 or $0.07 per common share on total revenue of $2,915,550 versus a loss from continuing operations of $1,263,812 or $0.05 per common share on total revenue of $2,037,205 last fiscal year. Net loss for the first half was $1,667,366 or $0.07 per common share versus a net loss last year of $1,307,513 or $0.05 per common share.
"All aspects of our business performed well during the second quarter and six months ended September 30, 2006 evidenced by nearly a doubling in total revenue for the quarter and total revenue growth of 43 percent for the first half. This revenue growth was fueled by the successful execution of our strategy to identify and win production opportunities in conventional motor and electronic markets which resulted in product sales more than doubling for the second quarter to $935,092. Customer funded development activities also turned in a strong performance with contract services revenue increasing 44 percent and 60 percent for the quarter and six months ended September 30, 2006, respectively," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "We expect to see continued revenue growth going forward as we begin shipping electronic auxiliary products as part of a $1.9 million production order announced in June and our recently announced $3 million follow-on production order for vehicle electric auxiliary motors. For the third quarter we expect high volume product revenue to continue to rise, with total revenue reaching approximately $1.8 million, resulting in improvements in gross profit margins and a decrease in our loss from continuing operations."
"Loss from continuing operations for the quarter and first half were impacted by new share based payment accounting rules which generated additional non-cash expenses for the quarter and six month period of $313,409 and $474,384, respectively, with nearly 50 and 67 percent of these amounts arising from stock options granted in previous fiscal years. Loss from continuing operations for the quarter and six months ended September 30, 2006 reflect these increased non-cash charges while the comparable periods last fiscal year do not include any expenses associated with share based compensation. Accounting for share based payments is expected to continue to adversely impact the year-over-year comparability of financial results throughout the remainder of this first fiscal year of implementation," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer.
The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter and six months ended September 30, 2005. To attend the conference call, please dial 1-866-321-6651 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-416-642-5212. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Time today. To access the playback call 1-866-244-4494 and give replay code 111845. International callers should dial 1-416-915-1028.
UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including propulsion systems for electric, hybrid electric and fuel cell electric vehicles, under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center, and motor manufacturing operation are located in Frederick, Colorado. For more information on the Company, please visit its worldwide website at http://www.uqm.com.
This Release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this Release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things the development of markets for our products and the adequacy of our cash balances and liquidity to meet future operating needs. Important Risk Factors that could cause actual results to differ from those contained in the forward- looking statements are contained in our Form 10-Q filed today, which is available through our website at http://www.uqm.com or at http://www.sec.gov.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
Assets September 30, 2006 March 31, 2006
Current assets:
Cash and cash equivalents $2,093,668 4,076,806
Short-term investments 6,749,759 6,009,394
Accounts receivable 1,176,117 512,409
Costs and estimated earnings in
excess of billings on uncompleted
contracts 151,318 450,044
Inventories 842,592 467,485
Prepaid expenses and other current
assets 240,405 118,439
Total current assets 11,253,859 11,634,577
Property and equipment, at cost:
Land 181,580 181,580
Building 2,303,919 2,297,467
Machinery and equipment 3,121,239 2,808,324
5,606,738 5,287,371
Less accumulated depreciation (2,840,499) (2,683,295)
Net property and equipment 2,766,239 2,604,076
Patent and trademark costs, net of
accumulated amortization of $594,930
and $545,468 509,092 552,382
Other assets 5,053 5,053
Total assets $14,534,243 14,796,088
Liabilities and Stockholders' Equity September 30, 2006 March 31, 2006
Current liabilities:
Accounts payable $366,144 534,428
Other current liabilities 217,525 309,097
Current portion of long-term debt 95,354 92,013
Short-term deferred compensation
under executive employment
agreements 132,155 --
Liabilities and commitments of
discontinued operations 25,946 62,004
Billings in excess of costs and
estimated earnings on
uncompleted contracts 372,094 221,626
Total current liabilities 1,209,218 1,219,168
Long-term debt, less current portion 573,340 621,685
Long-term deferred compensation under
executive employment agreements 152,231 210,861
725,571 832,546
Total liabilities 1,934,789 2,051,714
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
25,143,051 and 24,776,042 shares
issued and outstanding 251,431 247,760
Additional paid-in capital 70,812,236 69,293,461
Accumulated deficit (58,464,213) (56,796,847)
Total stockholders' equity 12,599,454 12,744,374
Total liabilities and
stockholders' equity $14,534,243 14,796,088
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Quarter Ended Six Months Ended
September 30, September 30,
2006 2005 2006 2005
Revenue:
Contract services $679,126 470,276 1,503,480 937,864
Product sales 935,092 413,724 1,412,070 1,099,341
1,614,218 884,000 2,915,550 2,037,205
Operating costs and
expenses:
Costs of contract
services 613,130 471,758 1,268,255 1,134,314
Costs of product sales 879,248 327,198 1,403,324 930,884
Research and
development 79,330 103,532 174,481 133,852
Production engineering 232,517 172,876 480,889 339,566
Selling, general and
administrative 780,322 418,608 1,452,839 867,053
Impairment of long-
lived assets -- -- -- 1,455
2,584,547 1,493,972 4,779,788 3,407,124
Loss from continuing
operations before
other income
(expense) (970,329) (609,972) (1,864,238) (1,369,919)
Other income (expense):
Interest income 117,559 81,833 238,211 137,998
Interest expense (12,160) (15,824) (24,587) (32,416)
Other -- 525 -- 525
105,399 66,534 213,624 106,107
Loss from continuing
operations (864,930) (543,438) (1,650,614) (1,263,812)
Discontinued operations -
loss from operations of
discontinued electronic
products segment (14,640) (33,270) (16,752) (43,701)
Net loss $(879,570) (576,708) (1,667,366) (1,307,513)
Net loss per common
share - basic and
diluted
Continuing operations $(.04) (.02) (.07) (.05)
Discontinued
operations -- -- -- --
$(.04) (.02) (.07) (.05)
Weighted average number
of shares of common
stock outstanding -
basic and diluted 25,137,888 24,552,704 25,082,358 23,876,669
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2006:
Power
Technology Products Total
Revenue $1,130,528 483,690 1,614,218
Interest income 116,830 729 117,559
Interest expense -- (12,160) (12,160)
Depreciation and amortization (67,538) (41,164) (108,702)
Segment loss from continuing
operations (695,161) (169,769) (864,930)
Assets of continuing
operations 11,365,226 3,169,017 14,534,243
Expenditures for long-
lived segment assets $(31,787) (48,094) (79,881)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
as of and for the quarter ended September 30, 2005:
Power
Technology Products Total
Revenue $717,844 166,156 884,000
Interest income 79,395 2,438 81,833
Interest expense -- (15,824) (15,824)
Depreciation and amortization (60,895) (27,596) (88,491)
Segment loss from continuing
operations (508,969) (34,469) (543,438)
Assets of continuing
operations 12,851,752 2,750,098 15,601,850
Expenditures for long-
lived segment assets $(53,642) 16,138 (37,504)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
as of and for the six months ended September 30, 2006:
Power
Technology Products Total
Revenue $2,010,160 905,390 2,915,550
Interest income 235,919 2,292 238,211
Interest expense -- (24,587) (24,587)
Depreciation and amortization (134,667) (71,999) (206,666)
Segment loss from continuing
operations (1,301,208) (349,406) (1,650,614)
Assets of continuing
operations 11,365,226 3,169,017 14,534,243
Expenditures for long-
lived segment assets $(117,020) (208,519) (325,539)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
as of and for the six months ended September 30, 2005:
Power
Technology Products Total
Revenue $1,442,988 594,217 2,037,205
Interest income 133,151 4,847 137,998
Interest expense -- (32,416) (32,416)
Depreciation and amortization (121,169) (56,104) (177,273)
Segment loss from continuing
operations (1,257,557) (6,255) (1,263,812)
Assets of continuing
operations 12,851,752 2,750,098 15,601,850
Expenditures for long-
lived segment assets $(70,620) (10,181) (80,801)