UQM Technologies Reports Second Quarter Operating Results

  • Product sales rose 11 percent and total revenue rose 15 percent for the quarter
  • Volume production operations for automotive –qualified PowerPhase Pro® electric propulsion system launched at the end of the quarter

LONGMONT, Colo.--()--UQM Technologies, Inc. (NYSE Amex: UQM), a developer of alternative-energy technologies, announced today operating results for the quarter and six month period ended September 30, 2011.

“During the quarter we completed volume production launch preparations for our PowerPhase Pro® 100 electric propulsion system including finalizing negotiations with suppliers in our international supply chain and completing final throughput validation and balancing of our production lines for motors and motor controllers,” said Eric R. Ridenour, UQM Technologies’ President and Chief Executive Officer. “Late in the quarter we launched volume production of this electric propulsion system, which we expect will result in a substantial increase in our product sales revenue over the next several quarters. We are excited about achieving this important milestone in the growth of our company and we are looking forward to leverage our status as one of the few Tier One volume producers of electric propulsion systems into additional customer production opportunities.”

Operations for the second quarter resulted in a net loss of $1,586,185 or $0.04 per common share on total revenue of $2,334,223 versus a net loss of $377,793 or $0.01 per common share on total revenue of $2,027,558 for the second quarter last fiscal year. Net loss for the second quarter last year includes an expense reduction for the recovery of costs from earlier periods under our DOE grant of $2,008,981.

Operations for the six month period ended September 30, 2011 resulted in a net loss of $2,629,728 or $0.07 per common share on total revenue of $3,649,283 versus a net loss of $864,663 or $0.02 per common share on total revenue of $4,582,882 for the comparable period last year. Net loss for the first half last year includes an expense reduction for the recovery of costs from earlier periods under our DOE grant of $1,546,446.

“Gross profit margins for the quarter and six month period ended September 30, 2011 improved to 43.7 percent and 44.1 percent, respectively, compared to 11.2 percent and 26.0 percent for the same periods last fiscal year due to improved raw material costs and overhead absorption and changes in product mix”, said Donald A. French, UQM Technologies’ Treasurer and Chief Financial Officer. “Gross profit contribution dollars increased over four-fold to $1,020,541 for the quarter versus $226,609 for the comparable quarter last fiscal year and rose to $1,608,436 for the first half versus $1,190,681 for the first half last year despite a decrease in total revenue for the six month period. Production engineering expenses for the quarter and six month period ended September 30, 2011 nearly doubled to $1,622,163 and $3,196,986, respectively, versus $856,682 and $1,660,316 for the same periods last fiscal year reflecting expanded development activities on the next generation of our PowerPhase Pro 100 system and our higher power PowerPhase HD® 220 system for the truck and bus market. However, production engineering expenditures, net of current period reimbursements under the DOE grant, rose at a substantially lower rate to $511,129 for the quarter versus $313,719 for the same quarter last year and to $964,316 and $654,818 for the first half this fiscal year versus last fiscal year, reducing the overall cost impact of our expanded product development activities.”

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, 2011. To attend the conference call, please dial 1-800-762-8908 approximately ten minutes before the conference is scheduled to begin and provide the passcode “4483010” to access the call. International callers should dial 1-480-629-9868. 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 1-800-406-7325 and enter replay code “4483010#”. International callers should dial +1 303-590-3030.

UQM Technologies, Inc. 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 of the Company 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. The Company’s headquarters, engineering and product development center, and manufacturing operation are located in Longmont, Colorado. For more information on the Company, please visit our website at 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, orders to be received under our supply agreement with CODA Automotive, future financial results 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-Q filed today, which is available through our website at www.uqm.com or at www.sec.gov.

 

 

   

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations (unaudited)

 
Quarter Ended September 30, Six Months Ended September 30,
2011   2010 2011   2010
Revenue:        
  Contract services $ 135,547 43,262 211,849 345,490
Product sales   2,198,676   1,984,296   3,437,434   4,237,392  
  2,334,223   2,027,558   3,649,283   4,582,882  
 
Operating costs and expenses:
Costs of contract services 86,123 161,434 131,693 350,750
Costs of product sales 1,227,559 1,639,515 1,909,154 3,041,451
Research and development 647 152,628 4,810 271,947
Production engineering 1,622,163 856,682 3,196,986 1,660,316
Reimbursement of costs under DOE grant (1,111,034 ) (2,551,944 ) (2,232,670 ) (2,551,944 )
Selling, general and administrative 2,099,025 2,177,981 3,288,628 3,000,822
Gain on sale of long-lived asset   (3,138 ) -   (3,138 ) (1,004 )
  3,921,345   2,436,296   6,295,463   5,772,338  
 
  Loss before other income (1,587,122 ) (408,738 ) (2,646,180 ) (1,189,456 )
 
Other income:
Interest income 641 30,945 15,895 59,653
Other   296   -   557   265,140  
  937   30,945   16,452   324,793  
 
 
Net loss $ (1,586,185 ) (377,793 ) (2,629,728 ) (864,663 )
 
Net loss per common share - basic and
  diluted $ (0.04 ) (0.01 ) (0.07 ) (0.02 )
 
Weighted average number of shares of
common stock outstanding - basic and
diluted   36,304,613   36,005,413   36,263,640   35,976,580  
 
   

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (unaudited)

 
September 30, 2011 March 31, 2011

Assets

Current assets:
  Cash and cash equivalents $ 12,110,293 15,878,752
Short-term investments 6,939,141 8,332,523
Accounts receivable, net 2,633,744 3,527,054
Costs and estimated earnings in excess of billings on uncompleted contracts 274,147 126,775
Inventories 4,257,296 2,213,441
Facility held for sale 1,621,257 -
Prepaid expenses and other current assets   1,178,786   367,154  
Total current assets   29,014,664   30,445,699  
 
Property and equipment, at cost:
Land 1,683,330 1,859,988
Building 4,446,332 6,822,850
Machinery and equipment   7,271,121   6,766,539  
13,400,783 15,449,377
Less accumulated depreciation   (4,221,133 ) (4,696,942 )
Net property and equipment   9,179,650   10,752,435  
 
Patent costs, net of accumulated amortization of $799,420 and $781,608 264,260 264,091
 
Trademark costs, net of accumulated amortization of $57,499 and $55,256 116,088 118,331
 
Other assets   280,496   223,364  
 
Total assets $ 38,855,158   41,803,920  
 

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable $ 1,151,639 1,373,403
Other current liabilities 846,100 903,706
Short-term deferred compensation under executive employment
agreements - 739,200
Billings in excess of costs and estimated earnings on uncompleted contracts   -   15,726  
Total current liabilities   1,997,739   3,032,035  
 
Long-term deferred compensation under executive employment agreements   632,191   577,172  
 
Total liabilities   2,629,930   3,609,207  
 
Commitments and contingencies
 
Stockholders’ equity:
Common stock, $0.01 par value, 50,000,000 shares
authorized; 36,326,516 and 36,213,293 shares
issued and outstanding 363,265 362,133
Additional paid-in capital 114,050,160 113,391,049
Accumulated deficit   (78,188,197 ) (75,558,469 )
 
Total stockholders’ equity   36,225,228   38,194,713  
 
Total liabilities and stockholders’ equity $ 38,855,158   41,803,920  
 

Contacts

UQM Technologies, Inc.
Donald A. French, 303-682-4900
or
BPC Financial Marketing
John Baldiserra, 800-368-1217

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Contacts

UQM Technologies, Inc.
Donald A. French, 303-682-4900
or
BPC Financial Marketing
John Baldiserra, 800-368-1217