UQM UQM Technologies Inc

UQM Technologies Reports Third Quarter Operating Results FREDERICK, Colo., Jan. 27 /PRNewswire-FirstCall/ -- UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today operating results for the quarter ended December 31, 2004. Continuing operations for the third quarter resulted in a loss of $367,172 or $0.02 per common share on total revenue of $1,307,583 versus a loss from continuing operations of $260,552 or $0.02 per common share on total revenue of $1,187,181 for the third quarter last year. Net loss for the quarter was $392,980 or $0.02 per common share versus a net loss of $1,511,768 or $0.08 per common share for the comparable quarter last year. Continuing operations for the nine months ended December 31, 2004 resulted in a loss of $1,443,354 or $0.07 per common share on total revenue of $3,226,056 versus a loss from continuing operations of $902,774 or $0.05 per common share on total revenue of $4,276,100 for the comparable period last year. Net loss for the nine month period was $1,488,134 or $0.07 per common share versus a net loss of $2,904,075 or $0.15 per common share for the comparable period last year. "The demand for hybrid vehicle technology, specifically electric propulsion systems and under-the-hood auxiliaries, is spreading beyond the automobile market to trucks, buses, as well as off-road and military vehicles," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "The Company is well positioned to participate in this emerging market with its breadth of advanced products and established relationships with industry-leading customers. We are also making progress in penetrating existing niche markets where we expect that the superior size, weight, efficiency and performance of our systems will allow us to displace current electric motor suppliers and lead to near-term production programs. We expect to continue to invest the cash proceeds of our recent follow-on offering in the further expansion of our production engineering group and the selective investment in high production potential programs." "Total revenue for the quarter rose 10 percent to $1,307,583 versus the comparable quarter last year driven by increased shipments of wheelchair propulsion motors. Mechanical products segment revenue more than doubled to $507,031 versus $218,302 for the third quarter last year. Contract services revenue for the quarter declined to $598,323 from $870,210 for the comparable quarter last year due to a decrease in billable engineering hours associated with the allocation of engineering manpower to bid and proposal opportunities, programs with cost overruns and production engineering support activities. Loss from continuing operations for the quarter rose to $367,172 versus $260,552 for the same quarter last year due to the launch of a production engineering group, which resulted in additional operating costs of $93,479 for the quarter, and lower gross profit margins on contract services. During the quarter we completed a follow-on offering of our common stock which increased our available cash balances and short-term investments to $8.6 million," said Donald A. French, UQM Technologies Treasurer and Chief Financial Officer. The Company will host a conference call today at 4:30 p.m. Eastern Standard Time to discuss operating results for the quarter and nine months ended December 31, 2004. To attend the conference call, please dial 1-877-236-1078 approximately ten minutes before the conference is scheduled to begin. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning approximately four hours after the call. To access the playback dial 1-800-938-1584. International callers should dial 1-402-220-1542. UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including propulsion systems for electric, hybrid electric and fuel cell electric vehicles, 42-volt under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center, and motor manufacturing operation are located in Frederick, Colorado. For more information on the Company, please visit its worldwide website at http://www.uqm.com/. This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this press release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things, the development of markets for our products. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-Q filed January 27, 2005 and is available through our website at http://www.uqm.com/ or at http://www.sec.gov/. UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited) Quarter Ended Nine Months Ended December 31, December 31, 2004 2003 2004 2003 Revenue: Contract services $598,323 870,210 1,605,622 2,209,514 Product sales 709,260 316,971 1,620,434 2,066,586 1,307,583 1,187,181 3,226,056 4,276,100 Operating costs and expenses: Costs of contract services 612,544 645,401 1,776,612 1,685,198 Costs of product sales 581,591 280,196 1,366,324 1,739,669 Research and development 42,875 97,892 138,550 394,405 Production engineering 93,479 -- 93,479 -- General and administrative 357,062 410,815 1,295,053 1,313,242 1,687,551 1,434,304 4,670,018 5,132,514 Loss from continuing operations before other income (expense) (379,968) (247,123) (1,443,962) (856,414) Other income (expense): Interest income 30,947 7,886 47,736 18,956 Interest expense (18,151) (21,315) (57,128) (65,916) Other -- -- 10,000 600 12,796 (13,429) 608 (46,360) Loss from continuing operations (367,172) (260,552) (1,443,354) (902,774) Discontinued operations: Loss from operations of discontinued electronic products segment (25,808) (1,251,216) (44,780) (2,001,301) Net loss $(392,980) (1,511,768) (1,488,134) (2,904,075) Net loss per common share -- basic and diluted Continuing operations $(0.02) (0.02) (0.07) (0.05) Discontinued operations -- (0.06) -- (0.10) $(0.02) (0.08) (0.07) (0.15) Weighted average number of shares of common stock outstanding -- basic and diluted 21,805,231 19,423,379 20,320,749 19,040,352 UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31, March 31, 2004 2004 (unaudited) Assets Current assets: Cash and cash equivalents $7,530,856 2,958,590 Short-term investment 1,024,669 47,119 Accounts receivable 789,930 512,995 Costs and estimated earnings in excess of billings on uncompleted contracts 399,720 245,984 Inventories 741,974 428,438 Prepaid expenses and other current assets 145,825 72,649 Assets of discontinued operations -- 1,226,943 10,632,974 5,492,718 Property and equipment, at cost: Land 181,580 181,580 Building 2,292,687 2,292,687 Machinery and equipment 2,787,087 2,793,343 5,261,354 5,267,610 Less accumulated depreciation (2,846,095) (2,732,291) Net property and equipment 2,415,259 2,535,319 Patent and trademark costs, net of accumulated amortization of $424,832 and $360,266 661,325 692,371 Other assets 850 850 $13,710,408 8,721,258 December 31, March 31, 2004 2004 (unaudited) Liabilities and Stockholders' Equity Current liabilities: Accounts payable $721,506 392,474 Other current liabilities 275,617 258,258 Current portion of long-term debt 134,319 125,611 Liabilities and commitments of discontinued operations 148,744 554,564 Billings in excess of costs and estimated earnings on uncompleted contracts 161,189 189,252 Total current liabilities 1,441,375 1,520,159 Long-term debt, less current portion 844,432 946,423 Long-term portion of accrued lease obligation 70,745 192,118 Total long-term liabilities 915,177 1,138,541 Total liabilities 2,356,552 2,658,700 Stockholders' equity: Common stock, $.01 par value, 50,000,000 shares authorized; 23,174,843 and 19,572,625 shares issued and outstanding 231,748 195,726 Additional paid-in capital 64,762,728 58,025,631 Accumulated deficit (53,631,115) (52,142,981) Note receivable from officer (9,505) (15,818) Total stockholders' equity 11,353,856 6,062,558 $13,710,408 8,721,258 The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended December 31, 2004: Mechanical Technology Products Total Revenue $800,552 507,031 1,307,583 Interest income 28,949 1,998 30,947 Interest expense (283) (17,868) (18,151) Depreciation and amortization (58,318) (27,963) (86,281) Segment earnings (loss) from continuing operations (484,558) 117,386 (367,172) Assets of continuing operations 10,533,453 3,176,955 13,710,408 Expenditures for segment assets $(28,007) (5,165) (33,172) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the quarter ended December 31, 2003 except for assets of continuing operations which are as of March 31, 2004: Mechanical Technology Products Total Revenue $968,879 218,302 1,187,181 Interest income 6,850 1,036 7,886 Interest expense (497) (20,818) (21,315) Depreciation and amortization (58,155) (32,639) (90,794) Segment loss from continuing operations (208,065) (52,487) (260,552) Assets of continuing operations 4,705,076 2,789,239 7,494,315 Expenditures for segment assets $(29,640) (19,123) (48,763) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the nine months ended December 31, 2004: Mechanical Technology Products Total Revenue $2,091,489 1,134,567 3,226,056 Interest income 43,087 4,649 47,736 Interest expense (2,108) (55,020) (57,128) Depreciation and amortization (183,103) (83,805) (266,908) Segment earnings (loss) from continuing operations (1,649,846) 206,492 (1,443,354) Assets of continuing operations 10,533,453 3,176,955 13,710,408 Expenditures for segment assets $(112,124) (5,912) (118,036) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the nine months ended December 31, 2003 except for assets of continuing operations which are as of March 31, 2004: Mechanical Technology Products Total Revenue $2,708,581 1,567,519 4,276,100 Interest income 15,743 3,213 18,956 Interest expense (3,704) (62,212) (65,916) Depreciation and amortization (191,986) (134,158) (326,144) Segment loss from continuing operations (844,088) (58,686) (902,774) Assets of continuing operations 4,705,076 2,789,239 7,494,315 Expenditures for segment assets $(134,272) (24,104) (158,376) DATASOURCE: UQM Technologies, Inc. CONTACT: John Baldissera of BPC Financial Marketing, +1-800-368-1217, for UQM Technologies, Inc.; or Donald A. French of UQM Technologies, Inc., +1-303-278-2002 Web site: http://www.uqm.com/

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