Unique Mobility, Inc. Announces Third Quarter Results
Revenue for the Quarter Grows 29 Percent Franklin Manufacturing Unit Expands Manufacturing Capability and Capacity
February 16, 1999 08:46
GOLDEN, Colo., Feb. 16 /PRNewswire/ -- Unique Mobility, Inc. (Amex: UQM) today reported its financial results for the quarter and nine months ended December 31, 1998.
Revenue for the quarter ended December 31, 1998, was $4,366,804 compared to $778,521 for the comparable quarter last year. Revenue for the nine months ended December 31, 1998, was $10,607,379 compared to $2,828,312 for the comparable period last year. Growth in revenue for the quarter and nine months was driven by product sales in the Company's electronic and mechanical products segments, which amounted to approximately 90 percent of total revenue. Product sales for the third quarter rose to $3,982,503 from $148,173 for the comparable quarter last year and rose over nineteen fold to $9,477,750 for the nine months ended December 31, 1998, versus the same period last year.
Operations for the quarter ended December 31, 1998, resulted in a net loss of $970,668 or $0.06 per share compared to a net loss of $680,533 or $0.05 per share for the quarter ended December 31, 1997. Operations for the nine months ended December 31, 1998, resulted in a net loss of $3,335,724 or $0.21 per share compared to a net loss of $1,534,981 or $0.11 per share for the nine months ended December 31, 1997. Approximately $1.3 million or $0.08 per share of the increase in net loss for the year to date period is attributable to higher levels of non-cash expenses including depreciation and amortization charges from recent acquisitions and recognition of the Company's proportionate share of losses at Taiwan UQM Electric Co., Ltd.
Commenting on the results, Donald A. French, Treasurer and Chief Financial Officer, said, "Revenue for the third quarter rose 29 percent from the record levels achieved during the second quarter despite adverse seasonal factors and lower demand in the agricultural sector throughout the period. Although non-cash charges impacted bottom line results, cash used by operations (net loss reduced by non-cash expenses) was $291,219 for the quarter, an improvement of 43 percent over the cash used by operations for the comparable quarter last year of $514,484 and the lowest level of cash used by operations for any quarter this year. For the fourth quarter we expect continued improvement in financial performance on higher revenue levels."
Separately, the Company announced that its Franklin Manufacturing unit has invested $1.5 million to expand its production and testing capability. Two new surface mount production lines have been installed, one of which contains "ball grid array" component placement technology which allows for higher precision and dense placement of components on a printed circuit board. The addition of the new surface mount manufacturing lines increases Franklin's component placement capacity nearly three-fold from 37,000 parts per hour to 110,000 parts per hour.
"The requirement to expand manufacturing operations is being driven by growth in the automotive sector of our business," said Michael G. Franklin, Unique's Vice President of Electronics Manufacturing. "This investment greatly expands our manufacturing capacity, improves our capability to manufacture increasingly complex electronic board assemblies and positions us to continue to meet the quality, pricing and volume expectations of our customers."
Commenting on these announcements, Ray A. Geddes, Chairman and Chief Executive Officer, said, "The capital improvements made at Franklin are indicative of the Company's commitment to provide modern facilities and equipment necessary to meet the rapidly growing needs of the business."
Unique Mobility, Inc., is a leading developer and manufacturer of power dense, high efficiency motors, gear assemblies and electronic assemblies for the aerospace, telecommunications, automotive, medical and industrial markets. The Company headquarters and engineering and product development center are located in Golden, Colorado. Manufacturing facilities are located in Frederick, Colorado (electric motors and gear assemblies) and St. Charles, Missouri (electronic assemblies and wire harnesses). For more information on the Company, please visit its worldwide web site at uqm.com.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the Risk Factors section of the Registration Statement on Form S-3 (File No. 333-67313) filed by Unique with the SEC, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including Unique's history of operating losses, its ability to obtain additional financing, competition, the Company's ability to integrate acquired businesses into existing operations, Unique's ability to protect its proprietary information, Year 2000 issues and Unique's limited experience in manufacturing processes and procedures and marketing and distribution.
Quarter Ended Dec. 31, Nine Months Ended Dec. 31,
1998 1997 1998 1997
Revenue:
Contract services $384,301 630,348 1,129,629 2,333,718
Product sales 3,982,503 148,173 9,477,750 494,594
4,366,804 778,521 10,607,379 2,828,312
Operating costs
and expenses:
Costs of contract
services 315,631 619,608 1,013,701 2,197,878
Costs of
product sales 3,677,497 99,888 8,828,014 356,625
Research and
development 138,937 220,505 589,659 486,643
General and
administrative 847,613 427,259 2,579,749 1,121,244
Depreciation and
amortization 162,506 54,523 428,133 157,248
5,142,184 1,421,783 13,439,256 4,319,638
Operating loss (775,380) (643,262) (2,831,877) (1,491,326)
Other income (expense):
Interest income 12,095 50,518 92,680 148,487
Interest expense (83,735) (17,071) (238,985) (58,885)
Equity in loss
of Taiwan joint
venture (108,616) (50,863) (308,905) (82,296)
Minority interest
share of earnings
of consolidated
subsidiary (18,118) (19,862) (54,112) (52,980)
Other 3,086 7 5,475 2,019
(195,288) (37,271) (503,847) (43,655)
Net loss $(970,668) (680,533) (3,335,724) (1,534,981)
Net loss per
common share
basic and diluted $ (.06) (.05) (.21) (.11)
Weighted average
number of shares
of common stock
outstanding 15,979,473 13,829,939 15,883,242 13,667,499
SOURCE Unique Mobility, Inc.
/CONTACT: John S. Gould, Director, Investor Relations of Unique Mobility,
Inc., 303-278-2002/
/Web site: uqm.com
(UQM) |
