DCH Technology Announces 2001 Third Quarter Results
Highlights: - Sales of hydrogen sensors increase 60% - Backlog for fuel cells increases to $1.1 million - Center for Hydrogen Safety(TM) awarded two contracts from Fortune 500 companies - Cash position substantially increased
VALENCIA, Calif., Nov 13, 2001 /PRNewswire via COMTEX/ -- DCH Technology, Inc. (Amex: DCH chart, msgs), a manufacturer of hydrogen-specific sensors and hydrogen fuel cells and provider of hydrogen safety services, today announced results for the three months ended September 30, 2001.
"We continued to attract prominent players in the energy industry for early evaluation and adoption of our fuel cells," said DCH President and CEO John Donohue. "For the upcoming fourth quarter, we have a backlog of 11 portable systems that are scheduled for delivery, and overall, our backlog for portable and stationary fuel cells has grown to $1.1 million.
"Our line of hydrogen-specific sensors continues to gain traction and sales of this product increased by 60% compared to the third quarter of last year. Further, our Center for Hydrogen Safety (CHS) completed contracts from two Fortune 500 companies in the automotive industry. One of the contracts was for our Hydrogen Safety Training Program, which is receiving much interest from major players in the fuel cell industry.
"I am particularly pleased to note that we made good progress in one of our top priorities -- attracting additional capital to the company. We secured a funding commitment on favorable terms from Swartz Private Equity during the third quarter, and we anticipate that they will be a long-term supporter of the company. We are in various stages of discussions with other potential investors, and we are confident that we will have access to the funding we need to finance our business plan," said Donohue.
Strategic Milestones
DCH continued to hit strategic milestones in each product line during the third quarter:
-- The company completed its proof of concept of a new high-sensitivity
hydrogen sensor module. Management expects that this next generation
hydrogen sensor will lead to even greater acceptance and sales for this
product line in the near- and long-term.
-- DCH successfully demonstrated the DCH Fuel Cell Water Taxi re-outfitted
with a 1 kW (~2 kW peak) fuel cell powertrain (the water taxi had been
demonstrated earlier in the year with a hydrogen-fueled turbine
powertrain). To the company's knowledge, this was the first
demonstration of a public transportation marine vehicle powered
completely by PEM fuel cells. Several potential customers were in
attendance at the demonstrations, funded by the California Air Quality
Board and kicked-off at the Newport Beach, California docks of Duffy
Electric Boat Co.
-- The DCH Center For Hydrogen Safety(TM) was awarded contracts on all
four proposals submitted during the quarter. In addition to the two
automotive contracts noted, the CHS provided services to SunLine
Transit, a leading distributor of alternative energy vehicles, and the
California Air Quality Management District.
Key impending milestones for the fourth quarter include delivery of a 5 kW fuel cell system; alpha units of the new DCH high-sensitivity hydrogen sensor module; launch of a new wall/ceiling mount line of H2SCAN(TM) sensing systems; and a special international government invitation to present DCH fuel cell products to more than 200 regional businesses.
Financial Results
For the third quarter of 2001, DCH incurred a loss from operations of $2.2 million, or $(0.08) per diluted share, compared to an operating loss of $2.3 million, or $(0.09) per diluted share, for the three months ended September 30, 2000. Net loss for the nine months ended September 30, 2001 was $7.7 million, or $(0.27) per diluted share, compared to a net loss of $5.3 million, or $(0.22) per diluted share, for the nine months ended September 30, 2000.
Revenues for the third quarter of 2001 were $251,078, compared with $150,578 in the same period of last year. Revenues for the nine months ended September 30, 2001 were $727,009, compared to $671,354 for the nine months ended September 30, 2000.
The higher sales for the three-month period ended September 30, 2001 reflected the continued market acceptance of our new sensor products. The lower sales for the nine-month period ended September 30, 2001 resulted primarily from a large non-recurring revenue realized during the first quarter of 2000.
For additional information, please contact Investor Relations at 661-775-4380 or at invest@dcht.com. Web page: www.dcht.com
Safe Harbor: This press release includes statements that are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect DCH Technology's current views about future events and performance. Investors should not rely on these statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from expectations. These factors include, but are not limited to, the cost of development and market acceptance of DCH's sensor-based systems and fuel cells, competition, the cost and availability of materials, governmental regulations, and other factors detailed in DCH Technology's filings with the Securities and Exchange Commission |
