UQM UQM Technologies Inc

UQM Technologies, Inc. (NYSE Amex: UQM), a developer of alternative-energy technologies, announced today operating results for the quarter and nine month period ended December 31, 2010.

“We are aggressively taking actions necessary to prepare UQM for growth and profitability while at the same time improving the efficiency of our processes that will contribute to the bottom line, both now and in the future,” said Eric R. Ridenour, President and CEO of UQM Technologies. “The company is well prepared for the ramp-up to volume production with our current customers and we continue to expand our customer base. We have a validated production line for our PowerPhase® 100 and 135kW systems with annual capacity of 40,000 units to supply CODA Automotive and other automotive OEM companies. We also have begun the production qualification process for our PowerPhase 150 and 200kW systems for Proterra and other customers in the medium-duty truck and bus markets.”

Operations for the third quarter resulted in a net loss of $932,520 or $0.03 per common share on total revenue of $2,090,474 versus a net loss of $1,984,469 or $0.06 per common share on total revenue of $2,007,214 for the third quarter last fiscal year.

Operations for the nine month period ended December 31, 2010, resulted in a net loss of $1,797,183 or $0.05 per common share on total revenue of $6,673,356 versus a net loss of $3,109,622 or $0.11 per common share on total revenue of $6,407,075 for the comparable period last year.

“Steady growth in sales across our product lines during the quarter and year-to-date periods, as well as reimbursements under our DOE award for product qualification and testing costs contributed to a reduction in our net loss for each period,” said Donald A. French, Treasurer and Chief Financial Officer of UQM Technologies. “We are focused on expanding our market penetration in the growing electrification markets and achieving profitable operations.”

During the year-to-date period there were a number of developments that have positioned UQM for potentially rapid future growth:

• Hired Eric R. Ridenour, former Chief Operating Officer of Chrysler, as UQM President and CEO, a seasoned executive with extensive automotive experience
• Delivered automotive qualified pre-production propulsion systems to both CODA Automotive and an international automobile company from our volume-production line
• Completed a supply agreement with Proterra Inc. for propulsion systems to power their composite transit buses
• Introduced a 200 kW PowerPhase propulsion system and a 5kW DC-AC inverter for electric and hybrid vehicles

The Company will host a conference call February 1, 2011, at 4:30 p.m. (EST) to discuss operating results for the quarter and nine months ended December 31, 2010. To attend the conference call, please dial 1-866-212-4491 approximately 10 minutes before the conference is scheduled to begin and provide the description “UQM” to access the call. International callers should dial 1-416-800-1066. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. EST February 1, 2010. To access the playback, call 1-866-583-1035 and enter access code 6576173#. International callers should dial +44 (0) 20 8196 1998.

UQM Technologies is a developer and manufacturer of power-dense, high-efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, military and industrial markets. A major emphasis for UQM 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. UQM headquarters, engineering, product development center and manufacturing operation are located in Longmont, Colorado. Please visit www.uqm.com for more information.

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, orders to be received under our supply agreement with CODA Automotive, future financial results, our ability to successfully expand our manufacturing facilities, and the continued growth of the electric-powered vehicle industry. 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)

    December 31, 2010     March 31, 2010

Assets

Current assets: Cash and cash equivalents $ 12,810,086 17,739,600 Short-term investments 11,952,223 12,409,183 Accounts receivable 3,387,423 1,695,638

Costs and estimated earnings in excess of billings on uncompleted contracts

297,202 680,746 Inventories 1,884,148 1,291,326 Prepaid expenses and other current assets 397,880   140,285   Total current assets 30,728,962   33,956,778     Property and equipment, at cost: Land 1,859,988 1,825,968 Building 6,425,918 5,402,176 Machinery and equipment 6,724,500   4,524,188   15,010,406 11,752,332 Less accumulated depreciation (4,663,458 ) (4,090,962 ) Net property and equipment 10,346,948   7,661,370    

Patent costs, net of accumulated amortization of $772,525 and $738,556

271,179 297,623

Trademark costs, net of accumulated amortization of $54,134 and $50,769

119,453 122,818 Other assets 157,677   643,984   Total assets $ 41,624,219   42,682,573       December 31, 2010

 

March 31, 2010

Liabilities and Stockholders’ Equity

Current Liabilities: Accounts payable $ 1,139,252 1,421,779 Other current liabilities 953,532 1,049,243

Short-term deferred compensation under executive employment agreements

739,200 432,554

Billings in excess of costs and estimated earnings on uncompleted contracts

42,418   51,552  

Total current liabilities

2,874,402   2,955,128    

Long-term deferred compensation under executive employment agreements

549,528   722,862     Total liabilities 3,423,930   3,677,990     Commitments and contingencies   Stockholders’ equity:

Common stock, $.01 par value, 50,000,000 shares authorized; 36,172,776 and 35,946,738 shares issued and outstanding

361,728 359,467 Additional paid-in capital 113,201,855 112,211,227 Accumulated deficit (75,363,294 ) (73,566,111 ) Total stockholders’ equity 38,200,289   39,004,583   Total liabilities and stockholders’ equity $ 41,624,219   42,682,573    

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations (unaudited)

      Quarter Ended December 31, Nine Months Ended December 31, 2010   2009 2010   2009 Revenue: Contract services $ 166,687 223,081 512,177 1,067,475 Product sales   1,923,787   1,784,133   6,161,179   5,339,600     2,090,474   2,007,214   6,673,356   6,407,075     Operating costs and expenses: Costs of contract services 97,094 143,612 447,844 725,332 Costs of product sales 1,553,546 1,221,211 4,594,997 3,617,375 Research and development 10,537 138,821 282,484 452,656 Production engineering 874,054 1,077,821 2,534,370 2,092,137

Reimbursement of costs under DOE grant

(546,803 ) - (3,098,747 ) - Selling, general and administrative   1,045,845   1,425,835   4,045,663   2,668,682     3,034,273   4,007,300   8,806,611   9,556,182     Loss before other income (expense) (943,799 ) (2,000,086 ) (2,133,255 ) (3,149,107 )   Other income (expense): Interest income 11,150 17,410 70,803 44,182 Interest expense - (1,793 ) - (15,697 ) Other   129   -   265,269   11,000     11,279   15,617   336,072   39,485       Net loss $ (932,520 ) (1,984,469 ) (1,797,183 ) (3,109,622 )  

Net loss per common share - basic and diluted

$ (0.03 ) (0.06 ) (0.05 ) (0.11 )

 

Weighted average number of shares of common stock outstanding - basic and diluted

  36,137,980   33,317,601   36,030,576   29,014,418    

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended December 31, 2010:

        Power     Technology Products Total Revenue $ 1,533,024 557,450 2,090,474 Interest income $ 10,655 495 11,150 Interest expense $ - - - Depreciation and amortization $ (120,528 ) (107,172 ) (227,700 ) Segment earnings $ (525,198 ) (407,322 ) (932,520 ) Total assets $ 30,295,083 11,329,136 41,624,219 Expenditures for long-lived segment assets $ (343,156 ) (1,286,010 ) (1,629,166 )  

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended December 31, 2009:

        Power     Technology Products Total Revenue $ 1,388,174 619,040 2,007,214 Interest income $ 16,780 630 17,410 Interest expense $ - (1,793 ) (1,793 ) Depreciation and amortization $ (107,370 ) (52,787 ) (160,157 ) Segment loss $ (1,747,314 ) (237,155 ) (1,984,469 ) Total assets $ 31,698,779 11,095,197 42,793,976 Expenditures for long-lived segment assets $ (364,854 ) (7,849,163 ) (8,214,017 )  

The following table summarizes significant financial statement information of each of the reportable segments as of and for the nine month period ended December 31, 2010:

        Power     Technology Products Total Revenue $ 4,579,053 2,094,303 6,673,356 Interest income $ 69,306 1,497 70,803 Interest expense $ - - - Depreciation and amortization $ (343,386 ) (272,919 ) (616,305 ) Segment loss $ (570,334 ) (1,226,849 ) (1,797,183 ) Total assets $ 30,295,083 11,329,136 41,624,219 Expenditures for long-lived segment assets $ (1,014,258 ) (5,062,449 ) (6,076,707 )  

The following table summarizes significant financial statement information of each of the reportable segments as of and for the nine month period ended December 31, 2009:

        Power     Technology Products Total Revenue $ 4,757,387 1,649,688 6,407,075 Interest income $ 41,964 2,218 44,182 Interest expense $ - (15,697 ) (15,697 ) Depreciation and amortization $ (288,260 ) (158,533 ) (446,793 ) Impairment of inventories $ (3,620 ) - (3,620 ) Segment loss $ (2,779,124 ) (330,498 ) (3,109,622 ) Total assets $ 31,698,779 11,095,197 42,793,976 Expenditures for long-lived segment assets $ (506,439 ) (7,871,670 ) (8,378,109 )