This may explain the recent strengh in IFTI. Looks like the next two quarters should be much improved.
Thursday February 13 8:24 AM EDT
Ionic Fuel Technology Reports Second Quarter Results
WILMINGTON, Del., Feb. 13 /PRNewswire/ -- Ionic Fuel Technology Inc , today announced revenues of $270,849 for its second quarter ending December 31, 1996, compared to $253,471 in the prior year. The net loss amounted to $163,928 or $.03 per share, a 55 percent improvement versus the loss of $362,544, or $.07 per share, in the year earlier period, according to Anthony J. S. Garner, President and Chief Executive Officer.
Revenues for the first six months of 1996 were $378,326 compared to $374,059 for the same period of 1995. The net loss decreased to $434,845 from $786,377 the previous year, and the loss per share was $.08 versus $.15. "Our operating expenses, confined to revenue producing customers, improved by 59 percent in the first six months. Considering orders in hand and in the pipeline and excluding the possibility of a bulk sale, we expect revenues in the fiscal third and fourth quarters to be more than double those of the prior year," commented Garner.
"We are now witnessing an acceleration in both the recognition and acceptance of the IFT System in the market," said Garner. "This is evidenced by an increasing order rate, more requests for quotations and wider applications of the technology."
Garner continued, "The very large energy consumers like oil refiners and petrochemical producers are recognizing the potential benefits of our system. We have had discussions with eight refineries across the UK and Europe and anticipate initial orders from at least two additional major oil refiners in the coming quarters. Each one of these sites represents a potential $1 to $1.5 million in revenues for Ionic in subsequent installations and with the success in the European
refineries,it allows us to bring forward our U.S. expansion strategy."
The initial IFT installation at Texaco's Pembroke refinery and a second UK refinery installation for a French international oil company both reported positive benefits from the IFT System. The refineries are realizing fuel savings, emission reductions, and reduced downtime for maintenance. The unique ability of the IFT System to remove coke, or carbon deposits, from boiler and cracker fireside tubes during normal operations can save a refinery 20 to 30 production days per year which, under normal circumstances, would be needed for routine cleaning.
During the quarter, the Company received orders for additional IFT Systems from existing clients Cargill, Whitebread Brewery, and the UK Ministry of Defense. Also, a research program is to be established with a leading UK electrical power generator to study how IFT Systems could benefit their industry.
The Energy Technology Support Unit (ETSU), a government agency representing industry in the UK, has evaluated the system's operating data and produced a leaflet endorsing the IFT technology for circulation to its member companies. This support from the ETSU has directly resulted in new orders and increased product exposure. Large industrial producers, including General Motors, Mars, Kimberly-Clark, Interbrew and Glaxo Wellcome, currently represent Ionic's largest
customer base.
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including without limitation risks in technology development, risks in product development and market acceptance of and demand for the Company's products, risks associated with competition and competitive pricing pressures, risks associated with foreign sales and other risks detailed in the Company's filings with the Securities and Exchange Commission.
Ionic Fuel Technology, Inc. is an environmental and combustion technology company engaged in the design, assembly and sale or lease of its proprietary "IFT System" offering to reduce harmful combustion emissions, increase fuel efficiency and to reduce or prevent carbon build-up on heat transfer surfaces. The Company's manufacturing facility is in Laindon, Essex, England and its present marketing and sales focus is in the United Kingdom, Europe and also, in the near future, in the United States.
IONIC FUEL TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the three For the six
months ended: months ended:
Dec. 31, Dec. 31 Dec. 31 Dec. 31
1996 1995 1996 1995
Revenues:
Rental income $81,085 $79,564 $159,767 $173,292
Service income 38,013 52,090 66,808 78,950
Equipment sales 151,751 121,817 151,751 121,817
Total revenues 270,849 253,471 378,326 374,059
Cost of revenues 213,957 111,867 395,373 196,789
Total 56,892 141,604 (17,047) 177,270
Operating Expenses:
General and administrative 162,561 395,280 323,349 785,505
Sales and marketing 52,523 118,061 84,350 209,195
Research and development 146 1,933 803 3,419
Total 215,230 515,274 408,502 998,119
Operating (Loss) (158,338) (373,670) (425,549) (820,849)
Other income (expense):
Interest income 8,504 25,447 19,035 63,865
Interest expense (14,094) (14,321) (28,331) (29,393)
Total (5,590) 11,126 (9,296) 34,472
Net (loss) $(163,928) $(362,544) $(434,845) $(786,377)
Net (loss) per share $ (0.03) $ (0.07) $ (0.08) $ (0.15)
Weighted average common
shares and equivalents
outstanding 5,410,500 5,410,668 5,410,500 5,410,668
BALANCE SHEET HIGHLIGHTS December 31, June 30,
1996 1996
(unaudited) (audited)
Current assets $1,429,227 $1,827,794
Property and equipment - net 171,367 192,608
Patents - net 609,380 638,783
Total assets $2,209,974 $2,659,185
Current liabilities $448,637 $505,374
Long-term debt 373,232 380,900
Total liabilities $821,869 $886,274
Shareholders' equity 1,388,105 1,772,911
Total liabilities and
stockholders' equity $2,209,974 $2,659,185
SOURCE Ionic Fuel Technology, Inc. |
