Humbly report, Sid, Energy Research Corporation Reports Fourth Quarter/Year End Results:
From: biz.yahoo.com
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Tuesday January 13, 10:32 am Eastern Time
Company Press Release
Energy Research Corporation Reports Fourth Quarter/Year End Results
DANBURY, Conn.--(BUSINESS WIRE)--Jan. 13, 1998--Energy Research Corporation
(AMEX:ERC - news), today reported net income for the year ended October 31,
1997, of $425,000 or 10 cents per share, on revenues of $24.8 million,
compared with net income of $509,000, or 13 cents per share on revenues of
$29 million for the prior year. Net income in the fourth quarter ended
October 31, 1997, was $79,000 or two cents per share on revenues of $6.6
million, compared with net income of $202,000 or five cents per share on
revenues of $7.3 million for same quarter in the previous year.
Net income was higher in 1996 than in 1997 for both the year and fourth
quarter due to the recovery of non-recurring costs associated with certain
company contracts. In addition, results for the fourth quarter of fiscal
1997 included certain non-recoverable employment related costs due to the
hiring of a new chief executive officer.
The decrease in revenues for both the year and fourth quarter was due to the
completion of the Direct Fuel Cell power plant project in Santa Clara
earlier in fiscal 1997.
''1997 was a very good year for ERC with a significant number of
achievements.'' said Jerry D. Leitman, President and Chief Executive Officer
of ERC. ''We continued important technology developments in our advanced
nickel zinc battery. ERC negotiated a global license for its battery with
Corning, Inc. for all applications other than electric/hybrid electric
vehicles, which ERC retained. During the year, the battery achieved in
excess of 600 rechargeable cycles at 80% depth of discharge. We believe that
this capability, combined with the battery's power-to-weight ratio and low
cost, give it exceptional potential for electric/hybrid electric vehicles
and other applications. We are aggressively pursuing the automotive industry
around the world and are in the process of testing our battery with several
automotive companies.''
Commenting further, Mr. Leitman said, ''Excellent progress was made in
developing ERC's Direct Fuel Cell technology for electricity generation. The
successful completion of the Santa Clara project, the world's largest
advanced fuel cell demonstration, represented a scale-up of fuel cell
technology by a factor of 30. Emissions of air pollutants were
insignificant, and CO2, a source of global warming, was reduced by over one-
third compared to a conventional power plant. The American Public Power
Association (APPA) gave the City of Santa Clara its Energy Innovation Award
for 1997 for hosting ERC's fuel cell demonstration. The Santa Clara plant
also won a technical achievement award from the Electric Power Research
Institute for hosting and managing the first commercial-scale demonstration
of a carbonate fuel cell power plant on a utility system. ERC's license
partner in Germany, MTU of Daimler Benz, performed its first test of their
advanced Hot Module design using a 250 kW Direct Fuel Cell stack
manufactured by ERC. Continuing its development of fuel cell technology, ERC
received its first contract to develop a fuel cell for ships' applications
from the U.S. Navy. This represents an exciting new potential market for
clean, fuel efficient power generation for marine applications.''
''This year ERC received its second consecutive Best in The Industry,
Nicholson Award from The National Association of Investment Clubs for its
1996 Annual Report. Last but not least, ERC extended its record of
consecutive quarters of positive earnings to nineteen through year end. All
in all, a very good year.''
''1998 is already underway on a positive note with a second maritime fuel
cell contract with the US Coast Guard. The company is also negotiating a
joint partnership/license agreement for its electric vehicle battery
technology with Xiamen City in the People's Republic of China and a
subsidiary of the Formosa Plastics Group of Taiwan,'' Leitman concluded.
Energy Research Corporation, located in Danbury and Torrington, Connecticut,
is an internationally recognized leader in the field of electrochemical
technology for electric power generation and storage. ERC is developing its
Direct Fuel Cells and batteries through funding from and in cooperation with
government, electric utility and major international industrial
organizations.
This release contains forward-looking statements regarding the Company's
development efforts that are based on current expectations that involve a
number of risks and uncertainties. These statements are made under the Safe
Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
The factors that could cause actual results to differ materially include the
following: interruption or cancellation of existing contracts or license
agreements, and uncertainties associated with government budget processes;
uncertainties associated with development projects; and described in 10-KSB
and 10-Q filings with the Securities and Exchange Commission.
ENERGY RESEARCH CORPORATION
Financial Highlights (Unaudited)
For the Three Months Ended For the Year Ended
10/31/97 10/31/96 10/31/97 10/31/96
Revenues $6,627,000 $7,252,000 $24,830,000 $29,446,000
License fee
income, net 209,000 90,000 650,000 $357,000
Net income
before income
taxes 110,000 327,000 672,000 810,000
Net income (loss) 79,000 202,000 425,000 509,000
Earnings per
share $.02 $.05 $.10 $.13
Weighted average
common and
common
equivalent
shares
outstanding 4,207,666 4,187,363 4,207,144 4,063,061
ENERGY RESEARCH CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
October 31, October 31,
1997 1996
ASSETS
Current assets: $10,161,000 $12,913,000
Property, plant &
equipment, net 8,254,000 7,245,000
Other assets 3,018,000 3,382,000
Total assets $21,433,000 23,540,000
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities $3,795,000 $4,826
Long-term debt 2,699,000 4,363,000
Other long-term liabilities 170,000 289,000
Stockholders' equity 14,769,000 14,062,000
Total liabilities and
stockholders' equity $21,433,000 23,540,000
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Contact:
Martin Skala, V.P.
John Chuhran, Media Consultant
Porter, LeVay & Rose, Inc.
(212) 564-4700
or
Peter R. Voyentzie
(203) 792-1460
e-mail: moreinfo@ercc.com
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Svejk
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