NEWS:
Company Press Release
SOURCE:
Valence Technology Reports Fourth Quarter & Year-End Results
HENDERSON, Nev., May 17 /PRNewswire/ -- Valence Technology Inc. (Nasdaq: VLNC), a developer of advanced rechargeable lithium polymer battery technology, today reported financial results for the fourth quarter and year-ended March 31, 2000.
For the fourth quarter of 2000, excluding one-time charges relating to the settlement of a securities class-action lawsuit and factory start-up costs, the company reported a net loss of 8.4 million, or (0.23) per share on 36 million weighted average shares outstanding, compared with a net loss of 8.5 million, or (0.32) per share on 26.7 million weighted average shares outstanding for the fourth quarter of 1999. The company recorded revenues of 0.7 million for the quarter compared with zero revenues in the year-ago quarter.
Including the one-time charges, the company reported a net loss of 41.6 million, or (1.15) per share for the fourth quarter of 2000.
For the fiscal year ended March 31, 2000, excluding one-time charges relating to the settlement of a securities class-action lawsuit and factory start-up costs, the company reported a net loss of 36.5 million, or (1.19) per share on 30.5 million weighted average shares outstanding, compared with a net loss of 29.3 million, or (1.13) per share on 25.9 million weighted average shares outstanding in fiscal year 1999. The company recorded revenues of 1.5 million for the year compared with zero revenues in fiscal 1999.
Including the one-time charges, the company reported a net loss of 69.7 million, or (2.28) per share for the fiscal year ended March 31, 2000.
As announced on February 10, 2000, Valence reached a settlement in the securities class-action lawsuit that had been pending against the company and certain of its present and former officers and directors. The court-approved settlement dismissed all the claims against the company and all other defendants without presumption or admission of any liability or wrongdoing. Under the terms of the settlement, Valence paid 1.3 million in cash and issued 950,000 shares of common stock to the class fund. The company took an accounting charge during the fourth quarter ending March 31, 2000 of 30.1 million or (0.83) per share for the impact of this settlement.
Research and development expenses totaled 28.5 million for fiscal 2000, compared with 22.2 million a year ago. The increased expenditure was incurred to prepare the plant, product and employees for commercialization of the company's proprietary batteries. General and administrative expenses were 6.8 million in fiscal 2000, versus 6.8 million in fiscal 1999.
As of March 31, 2000, Valence had cash and cash equivalents of 24.6 million, total assets of 58.5 million, and stockholders' equity of 27.8 million.
"In this last quarter of our fiscal year, Valence has made substantial and meaningful progress," said Lev Dawson, chairman, chief executive officer and founder of Valence. "We have initiated commercial sales of production from our plant in Northern Ireland, continued shipping battery components to our joint venture partners, and continued working closely with customers announcing new purchase orders. I look forward to even greater progress in the coming year."
Management will hold a conference call to discuss the company's results at 11:00 a.m. EDT today, May 17, 2000. Audio of the call is accessible to the general public via the web at vcall.com .
About Valence Technology Inc.
With more than 400 battery patents awarded and pending, Valence is a leader in the commercial production of lithium polymer batteries. The company operates facilities in Henderson, Nev. Seattle, Wash. and Mallusk, Northern Ireland. Valence is traded on the Nasdaq National Market under the symbol VLNC. Valence can be found on the Internet at valence.com .
The information contained herein includes forward-looking statements that involve risks and uncertainties. In particular, the establishment, development and potential success of product development and production outcomes are subject to risks and uncertainties both within and outside Valence's control. These risk factors are described from time to time in Valence's SEC reports, including on Form 10-K for the year ending March 28, 1999 and on Form l0-Q for the quarter ended December 26, l999 to which readers are referred.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per share amounts) Three Months Ended Year Ended
March 31, March 28, March 31, March 28,
2000 1999 2000 1999
Revenue:
Battery and
laminate sales $721 $- $1,518 $-
Costs and expenses:
Research and
product development 7,069 7,567 28,510 22,171
Marketing 118 30 297 105
General and
administrative 1,555 2,639 6,795 6,753
Factory start-up 3,171 - 3,171 -
Total costs
and expenses 11,913 10,236 38,773 29,029
Operating loss (11,192) (10,236) (37,255) (29,029) Stockholder lawsuit
settlement (30,061) - (30,061) -
Interest and
other income (116) 567 221 2,980
Interest expense (527) (167) (1,841) (643)
Equity in earnings
(loss) of
Joint Venture 345 555 (210) 268
Net loss (41,551) (9,281) (69,146) (26,424) Dividends & beneficial
conversion feature
on preferred stock (53) 763 (560) (2,865)
Net loss available
to common
stockholders $(41,604) $(8,518) $(69,706) $(29,289) Net loss per share
available to
common stockholders $(1.15) $(0.32) $(2.28) $(1.13) Shares used in
computing net loss
per share available
to common
stockholders 36,031 26,683 30,523 25,871
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, March 28,
2000 1999
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $24,556 $2,454
Accounts receivable 1,869 1,168
Inventory 1,641 -
Prepaids and other current assets 1,597 153
Total current assets 29,663 3,775
Property, plant and equipment, net 28,508 34,071
Investment in joint venture 345 555
Total assets $58,516 $38,401
LIABILITIES & EQUITY
Current liabilities:
Current portion of long-term debt $402 $423
Accounts payable 6,060 1,648
Accrued liabilities 2,882 4,207
Accrued royalties and license fees 2,000 1,000
Advances - 1,881
Grant payable 1,923 1,958
Accrued compensation 389 442
Total current liabilities 13,656 11,559
Deferred revenue 2,500 2,500
Long-term debt, less current portion 3,937 4,402
Long-term debt to stockholders 8,432 3,769
Total liabilities 28,525 22,230
Mandatorily redeemable
convertible preferred stock 2,146 8,216
Stockholders' equity 27,845 7,955
Total liabilities, mandatorily redeemable
convertible preferred stock
and stockholders' equity $58,516 $38,401
SOURCE Valence Technology Inc.
--------------------------------------------------------------------------------
Contact:
Lev Dawson, Chairman and Chief Executive Officer of Valence
Technology Inc., 702-558-1000; General, Haris Tajyar, Analysts, Ed McNally, or
Media, Jim Crockett, all of The Financial Relations Board, 310-442-0599 |
