UQM Technologies Reports Fourth Quarter and Fiscal 2011 Operating Results

• Fourth-quarter results improved 81 percent compared to Q4 FY 2010 with net loss declining to $195,175
• Fiscal 2011 operating results showed a $2.1M improvement compared to FY 2010
• Product sales rose by more than 15 percent for fiscal 2011
• UQM propulsion systems power multiple manufacturers’ vehicles, including CODA Automotive, Audi, Saab, Rolls-Royce, Proterra and EVI

LONGMONT, Colo.--(BUSINESS WIRE)--UQM TECHNOLOGIES, INC. (NYSE Amex: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and fiscal year ended March 31, 2011. Operations for the fourth quarter resulted in a net loss of $195,175 or $0.01 per common share on total revenue of $2,347,946 versus a net loss of $1,031,250 or $0.03 per common share on total revenue of $2,284,878 for the fourth quarter last year.

“Fiscal 2011 was a year of transition for the company. We streamlined our structure, expanded our production engineering organization, relocated our manufacturing facility and qualified our manufacturing lines in preparation for the higher volume production of our electric propulsion systems for CODA Automotive”

Operations for the fiscal year ended March 31, 2011 resulted in a net loss of $1,992,358 or $0.06 per common share on total revenue of $9,021,302 versus a net loss of $4,140,872 or $0.13 per common share on total revenue of $8,691,953 last fiscal year.

“Fiscal 2011 was a year of transition for the company. We streamlined our structure, expanded our production engineering organization, relocated our manufacturing facility and qualified our manufacturing lines in preparation for the higher volume production of our electric propulsion systems for CODA Automotive,” said Eric R. Ridenour, UQM Technologies President and Chief Executive Officer. “Pre-production unit shipments to CODA, propulsion systems shipments to Audi and Saab for their vehicle test fleets together with shipments to Proterra and Electric Vehicles International contributed to a 15 percent increase in product sales for the year.”

“During the fiscal year we invested $7.4 million in upgrades to our facilities and for manufacturing equipment, half of which was funded under the DOE grant, to establish annual manufacturing capacity of 40,000 units per year,” said Donald A. French, UQM Technologies Treasurer and Chief Financial Officer. “Reimbursements of product qualification and testing costs under our Department of Energy award, including reimbursements of approximately $1.5 million related to costs incurred last fiscal year, together with lower levels of internally-funded research and development expenditures contributed to a reduction in net loss for the fiscal year. We are looking forward to the successful launch of production for CODA in the second half of this calendar year.”

Building on its 35 years of experience, UQM develops and manufactures electric propulsion systems that have been selected to power the Saab 9-3 ePower, Audi A-1 e-tron and Rolls-Royce 102EX Electric Phantom pre-production test fleet vehicles. UQM is also powering Proterra’s electric composite transit buses, as well as Electric Vehicles International’s all-electric medium-duty truck and walk-in van. The company has a new facility with 40,000 units of annual production capacity for its PowerPhase^® electric propulsion systems to support the commercial launch of CODA Automotive and other customer vehicles.

The company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter and fiscal year ended March 31, 2011. To attend the conference call, please dial 1-866-966-5335 approximately ten minutes before the conference is scheduled to begin and provide confirmation code “UQM” to access the call. International callers should dial 1-212-999-6659. For anyone who is unable to participate in the conference, a recording will be available for 7 days beginning at 6:30 p.m. Eastern Time today. To access the playback call 1-866-583-1035 and give replay code 1963841#.

UQM Technologies is a developer and manufacturer of power-dense, high-efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, military and industrial markets. A major emphasis for UQM is developing products for the alternative-energy technologies sector, including propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles, under-the-hood power accessories and other vehicle auxiliaries. UQM headquarters, engineering, product development center and manufacturing operation are located in Longmont, Colorado.

Please visit www.uqm.com for more information.

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, orders to be received under our supply agreement with CODA Automotive, our ability to successfully expand our manufacturing facilities, and the continued growth of the electric-powered vehicle industry. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-K filed today, which is available through our website at www.uqm.com or at www.sec.gov .

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (unaudited)
				March 31, 2011	March 31, 2010
Assets
Current assets:
	Cash and cash equivalents			$ 15,878,752	17,739,600
	Short-term investments			8,332,523	12,409,183
	Accounts receivable			3,527,054	1,695,638
	Costs and estimated earnings in excess of billings on
		uncompleted contracts		126,775	680,746
	Inventories			2,213,441	1,291,326
	Prepaid expenses and other current assets			367,154	140,285
			Total current assets	30,445,699	33,956,778
Property and equipment, at cost:
	Land			1,859,988	1,825,968
	Building			6,822,850	5,402,176
	Machinery and equipment			6,766,539	4,524,188
				15,449,377	11,752,332
	Less accumulated depreciation			(4,696,942)	(4,090,962)
			Net property and equipment	10,752,435	7,661,370
Patent costs, net of accumulated amortization
	of $781,608 and $738,556			264,091	297,623
Trademark costs, net of accumulated amortization of $55,256 and $50,769				118,331	122,818
Other assets				223,364	643,984
			Total assets	$ 41,803,920	42,682,573
				March 31, 2011	March 31, 2010
Liabilities and Stockholders’ Equity
Current liabilities:
	Accounts payable			$ 1,373,403	1,421,779
	Other current liabilities			903,706	1,049,243
	Short-term deferred compensation under executive employment
		agreements		739,200	432,554
	Billings in excess of costs and estimated earnings on
		uncompleted contracts		15,726	51,552
			Total current liabilities	3,032,035	2,955,128
Long-term deferred compensation under executive employment agreements				577,172	722,862
			Total liabilities	3,609,207	3,677,990
Commitments and contingencies
Stockholders’ equity:
	Common stock, $0.01 par value, 50,000,000 shares
		authorized; 36,213,293and 35,946,738 shares
		issued and outstanding		362,133	359,467
	Additional paid-in capital			113,391,049	112,211,227
	Accumulated deficit			(75,558,469)	(73,566,111)
			Total stockholders’ equity	38,194,713	39,004,583
			Total liabilities and stockholders’ equity	$ 41,803,920	42,682,573

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
				Quarter Ended March 31,							Fiscal Year Ended March 31,
				2011				2010			2011			2010
Revenue:
	Contract services				$	96,027			317,124			608,204			1,384,599
	Product sales					2,251,919			1,967,754			8,413,098			7,307,354
						2,347,946			2,284,878			9,021,302			8,691,953
Operating costs and expenses:
	Costs of contract services					93,370			167,317			541,214			892,649
	Costs of product sales					1,492,388			1,464,796			6,087,385			5,082,171
	Research and development					10,381			123,685			292,865			576,341
	Production engineering					1,001,917			816,197			3,536,287			2,908,334
	Reimbursement of costs under DOE
		grant				(889,908	)		-			(3,988,655	)		-
	Selling, general and administrative					838,710			764,867			4,884,373			3,433,549
	Loss (gain) on disposal of assets					17,007			-			17,007			-
						2,563,865			3,336,862			11,370,476			12,893,044
		Loss before other income
			(expense)			(215,919	)		(1,051,984	)		(2,349,174	)		(4,201,091	)
Other income (expense):
	Interest income					20,539			20,734			91,342			64,916
	Interest expense					-			-			-			(15,697	)
	Other					205			-			265,474			11,000
						20,744			20,734			356,816			60,219
		Net loss			$	(195,175	)		(1,031,250	)		(1,992,358	)		(4,140,872	)
		Net loss per common share -
			basic and diluted		$	(0.01	)		(0.03	)		(0.06	)		(0.13	)
Weighted average number of shares of
	common stock outstanding - basic
	and diluted					36,191,940			35,932,992			36,070,364			30,720,368

The following table summarizes significant financial statement information after deducting intersegment eliminations of each of the reportable segments as of and for the quarter ended March 31, 2011:
				Power
	Technology			Products		Total
Revenue	$	1,305,433		1,042,513		2,347,946
Interest income	$	20,037		502		20,539
Interest expense	$	-		-		-
Depreciation and amortization	$	(118,926	)	(129,341	)	(248,267	)
Impairment of inventories	$	(3,924	)	(6,236	)	(10,160	)
Segment earnings (loss)	$	(444,751	)	249,576		(195,175	)
Total assets	$	29,474,989		12,328,931		41,803,920
Expenditures for long-lived segment assets	$	(283,558	)	(1,037,543	)	(1,321,101	)
The following table summarizes significant financial statement information after deducting intersegment eliminations of each of the reportable segments as of and for the quarter ended March 31, 2010:
				Power
	Technology			Products		Total
Revenue	$	1,478,790		806,088		2,284,878
Interest income	$	20,177		557		20,734
Interest expense	$	-		-		-
Depreciation and amortization	$	(101,465	)	(54,837	)	(156,302	)
Impairment of inventories	$	(23,094	)	-		(23,094	)
Segment loss	$	(902,475	)	(128,775	)	(1,031,250	)
Total assets	$	34,214,998		8,467,575		42,682,573
Expenditures for long-lived segment assets	$	(211,601	)	(659,066	)	(870,667	)
The following table summarizes significant financial statement information after deducting intersegment eliminations of each of the reportable segments as of and for the year ended March 31, 2011:
				Power
	Technology			Products		Total
Revenue	$	5,884,486		3,136,816		9,021,302
Interest income	$	89,343		1,999		91,342
Interest expense	$	-		-		-
Depreciation and amortization	$	(462,312	)	(402,260	)	(864,572	)
Impairment of inventories	$	(3,924	)	(6,236	)	(10,160	)
Segment loss	$	(1,015,085	)	(977,273	)	(1,992,358	)
Total assets	$	29,474,989		12,328,931		41,803,920
Expenditures for long-lived segment assets	$	(1,297,816	)	(6,099,992	)	(7,397,808	)
The following table summarizes significant financial statement information after deducting intersegment eliminations of each of the reportable segments as of and for the year ended March 31, 2010:
				Power
	Technology			Products		Total
Revenue	$	6,236,177		2,455,776		8,691,953
Interest income	$	62,141		2,775		64,916
Interest expense	$	-		(15,697	)	(15,697	)
Depreciation and amortization	$	(389,725	)	(213,370	)	(603,095	)
Impairment of inventories	$	(26,714	)	-		(26,714	)
Segment loss	$	(3,681,599	)	(459,273	)	(4,140,872	)
Total assets	$	34,214,998		8,467,575		42,682,573
Expenditures for long-lived segment assets	$	(718,040	)	(8,530,736	)	(9,248,776	)