Any thoughts on today's Q3 report (follows). This was all to be expected, right? Thanks,
Jeff
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Valence Technology Announces Third Quarter Results
HENDERSON, Nev., Feb. 12 /PRNewswire/ -- Valence Technology, Inc.
(Nasdaq: VLNC), a research and development company developing advanced,
rechargeable, lithium polymer battery technology for commercialization, today
reported operating results for its third quarter ended December 27, 1998.
Valence reported a net loss available to common stockholders of $11.5
million, or ($0.44) per share, for the third quarter of fiscal 1999. This
compares with a net loss available to common stockholders of $5.0 million, or
($0.21) per share, for the same quarter of last fiscal year. Valence had no
revenue for either quarter.
Quarter to quarter, research and development expenses totaled $5.9
million, compared with $3.3 million in the same period last year. Marketing,
general and administrative expenses were $1.9 million in fiscal 1999, compared
with $1.6 million in fiscal 1998.
As of December 27, 1998, Valence had cash and cash equivalents totaling
approximately $7.8 million, total assets of $44.7 million and stockholders'
equity of $24.4 million.
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 ended March 29,
1998, to which readers are referred.
Valence Technology is engaged in the research and development of advanced
rechargeable batteries based on lithium polymer technologies. The company is
traded on the Nasdaq National Market under the symbol VLNC. Valence can be
found on the Internet at valence-tech.com.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
1998 1997 1998 1997
Revenue:
Research and
development contracts $-- $-- $-- $--
Costs and expenses:
Research and product
development 5,866 3,261 14,604 11,723
Marketing 28 212 75 462
General and
administrative 1,857 1,381 4,114 4,179
Total costs and expenses 7,751 4,854 18,793 16,364
Operating loss (7,751) (4,854) (18,793) (16,364)
Other income -- -- 2,200 --
Interest income 78 189 213 963
Interest expense (228) (148) (476) (447)
Equity in losses
of joint venture -- (150) (287) (450)
Net operating loss (7,901) (4,963) (17,143) (16,298)
Dividends & beneficial
conversion feature
on preferred stock (3,553) -- (3,628) --
Net loss available to
common stockholders (11,454) (4,963) (20,771) (16,298)
Net loss per
share available to
common stockholders $(0.44) $(0.21) $(0.81) $(0.72)
Shares used in computing
net loss per share
available to
common stockholders 25,931 23,406 25,601 22,644
Condensed Consolidated Balance Sheet
(in thousands)
iNe>
December 27, March 29,
1998 1998
Unaudited Audited
Assets
Current assets:
Cash and cash equivalents $7,825 $8,400
Accounts receivable 630 1,429
Prepaids and other current assets 101 880
Total current assets 8,556 10,709
Property, plant and
equipment, net 36,166 31,712
Investment in joint venture -- 285
Other assets -- 188
Total assets $44,722 $42,894
Liabilities & Equity
Current liabilities:
Current portion of long-term debt $398 $399
Accounts payable 2,450 2,353
Accrued liabilities 6,284 7,213
Accrued royalties and license fees 750 1,000
Advances 700 700
Accrued compensation 443 817
Total current liabilities 11,025 12,482
Deferred revenue 2,500 2,500
Long-term debt, less current portion 4,635 4,950
Long-term debt to stockholder 2,203 --
Total liabilities 20,363 19,932
Stockholders' equity 24,359 22,962
Total liabilities and stockholders'
equity $44,722 $42,894
SOURCE Valence Technology, Inc.
CO: Valence Technology, Inc.
ST: Nevada
IN: CPR
SU: ERN
02/12/99 06:30 EST prnewswire.com
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