UQM UQM Technologies Inc

UQM Technologies, Inc. (AMEX: UQM), a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2007. Continuing operations for the first quarter resulted in a loss of $1,128,751 or $0.05 per common share on total revenue of $1,454,452 versus a loss from continuing operations of $785,684 or $0.03 per common share on total revenue of $1,301,332 for the first quarter last fiscal year. Net loss for the quarter was $1,128,751 or $0.05 per common share versus a net loss of $787,796 or $0.03 per common share for the comparable quarter last fiscal year. �Total revenue for the quarter rose 12 percent versus the first quarter last year fueled by strong product sales growth which nearly doubled. Contract services revenue for the quarter declined 38 percent to $514,750 due to the application of substantial engineering resources to support production planning and production engineering activities associated with the Phoenix Motorcars all-electric SUT program. As a result of these activities, production engineering expense for the quarter increased 120 percent to $546,033 versus $248,372 for the comparable quarter last fiscal year. This additional expense, together with the associated reduction in revenue from engineering programs, were the primary factors behind the increase in losses from continuing operations for the first quarter this year versus the same quarter last year,� said Donald A. French, UQM Technologies� Treasurer and Chief Financial Officer. �During the quarter we completed a private placement of our common stock to two institutional investors which resulted in net cash proceeds to the Company of approximately $5.2 million and raised our cash and short-term investments at June 30, 2007 to $11,873,392. These additional cash resources will significantly strengthen our ability to fund the volume production launch of the Phoenix Motorcars SUT program and the working capital requirements associated with the anticipated rapid growth in our revenues resulting from product shipments to support vehicle deliveries over the coming quarters.� The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter ended June 30, 2007. To attend the conference call, please dial 1-866-321-8231 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-416-642-5213. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Time today. To access the playback, call 1-866-244-4494 and give replay code 147696. International callers should dial 1-416-915-1028. 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, plug-in hybrid electric and fuel cell electric vehicles, 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 www.uqm.com. This 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 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, revenue growth from sales to Phoenix Motorcars, Inc., improvements in our financial performance, the development of markets for our products and the adequacy of our cash balances and liquidity to meet future operating needs. 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 today, which is available through our website at www.uqm.com or at www.sec.gov. UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (unaudited) � June 30, 2007 March 31, 2007 Assets Current assets: Cash and cash equivalents $ 4,157,625 1,952,177 Short-term investments 7,715,767 5,981,828 Accounts receivable 1,316,865 1,434,686 Accounts receivable from discontinued operations 30,700 76,097 Costs and estimated earnings in excess of billings on uncompleted contracts 98,183 187,913 Inventories 1,153,623 899,885 Prepaid expenses and other current assets 389,606 � 279,343 � Total current assets 14,862,369 � 10,811,929 � � Property and equipment, at cost: Land 181,580 181,580 Building 2,306,154 2,306,154 Machinery and equipment 3,273,359 � 3,152,296 � 5,761,093 5,640,030 Less accumulated depreciation (3,062,672 ) (2,977,305 ) Net property and equipment 2,698,421 � 2,662,725 � � Patent and trademark costs, net of accumulated amortization of $636,229 and $622,320 498,978 482,303 Other assets 54,102 � 55,650 � Total assets $ 18,113,870 � 14,012,607 � � June 30, 2007 March 31, 2007 Liabilities and Stockholders� Equity Current liabilities: Accounts payable $ 811,429 982,931 Other current liabilities 271,557 344,952 Current portion of long-term debt 100,537 98,760 Short-term deferred compensation under executive employment agreements 149,325 149,325 Liabilities and commitments of discontinued operations - 13,847 Billings in excess of costs and estimated earnings on uncompleted contracts 479,353 � 312,537 � Total current liabilities 1,812,201 � 1,902,352 � � Long-term debt, less current portion 497,192 522,925 Long-term deferred compensation under executive employment agreements 404,391 � 396,214 � 901,583 � 919,139 � Total liabilities 2,713,784 � 2,821,491 � � Commitments and contingencies � Stockholders� equity: Common stock, $.01 par value, 50,000,000 shares authorized; 26,437,482 and 25,176,889 shares issued and outstanding 264,375 251,769 Additional paid-in capital 76,701,577 71,376,462 Accumulated deficit (61,565,866 ) (60,437,115 ) Total stockholders� equity 15,400,086 � 11,191,116 � Total liabilities and stockholders� equity $ 18,113,870 � 14,012,607 � UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited) � Quarter Ended June 30, 2007 � 2006 � Revenue: Contract services $ 514,750 824,354 Product sales 939,702 � 476,978 � 1,454,452 � 1,301,332 � � Operating costs and expenses: Costs of contract services 461,146 655,125 Costs of product sales 964,403 524,076 Research and development 98,324 95,151 Production engineering 546,033 248,372 Selling, general and administrative 629,836 � 672,517 � 2,699,742 � 2,195,241 � � Loss from continuing operations before other income (expense) (1,245,290 ) (893,909 ) � Other income (expense): Interest income 123,439 120,652 Interest expense (10,900 ) (12,427 ) Gain on sale of property and equipment 4,000 � - � 116,539 � 108,225 � � Loss from continuing operations (1,128,751 ) (785,684 ) � Discontinued operations - loss from operations of discontinued electronic products segment - � (2,112 ) � Net loss $ (1,128,751 ) (787,796 ) � Net loss per common share - basic and diluted: Continuing operations $ (.05 ) (.03 ) Discontinued operations - � - � $ (.05 ) (.03 ) � Weighted average number of shares of common stock outstanding - basic and diluted 25,254,531 � 25,026,218 � The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2007: Power Technology Products Total Revenue $ 704,374 750,078 1,454,452 Interest income 121,476 1,963 123,439 Interest expense - (10,900 ) (10,900 ) Depreciation and amortization (55,452 ) (50,724 ) (106,176 ) Segment loss from continuing operations (984,590 ) (144,161 ) (1,128,751 ) Assets of continuing operations 14,312,092 3,771,078 18,083,170 Expenditures for long-lived segment assets $ (119,254 ) (39,293 ) (158,547 ) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2006: Power Technology Products Total Revenue $ 879,632 421,700 1,301,332 Interest income 119,089 1,563 120,652 Interest expense - (12,427 ) (12,427 ) Depreciation and amortization (67,129 ) (30,835 ) (97,964 ) Segment loss from continuing operations (606,047 ) (179,637 ) (785,684 ) Assets of continuing operations 12,503,459 2,851,861 15,355,320 Expenditures for long-lived segment assets $ (85,233 ) (160,425 ) (245,658 )