UQM UQM Technologies Inc

UQM Technologies Reports Fourth Quarter and Fiscal 2004 Operating Results FREDERICK, Colo., May 27 /PRNewswire-FirstCall/ -- UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today operating results for the quarter and fiscal year ended March 31, 2004. Continuing operations for the fourth quarter resulted in a loss of $519,541 or $0.03 per common share on total revenue of $764,804 versus a loss from continuing operations of $250,325 or $0.01 per common share on total revenue of $1,559,065 for the fourth quarter last year. Net loss for the quarter, which includes losses from discontinued operations of $1,363,337 or $0.07 per common share, was $1,882,878 or $0.10 per common share versus a net loss of $839,640 or $0.04 per common share, which included losses from discontinued operations of $589,315 or $0.03 per common share, for the comparable quarter last year. Continuing operations for the fiscal year ended March 31, 2004 resulted in a loss of $1,422,315 or $0.07 per common share on total revenue of $5,040,904 versus a loss from continuing operations of $933,507 or $0.05 per common share on total revenue of $7,552,360 last fiscal year. Net loss for the fiscal year was $4,786,953 or $0.25 per common share, which includes losses from discontinued operations of $3,364,638 or $0.18 per common share versus a net loss last year of $3,598,650 or $0.19 per common share, which included losses from discontinued operations of $2,665,143 or $0.14 per common share. "Operating results from continuing operations for the fiscal year ended March 31, 2004 reflect a four-fold increase in internally-funded research and development expenditures to $461,223 which contributed to higher losses versus last fiscal year. These expenditures were associated with the development of a new method of control for our motors that produces significant performance enhancements including nearly twice the constant power rating, enhanced torque delivery at low speed and improved system efficiency," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer. "As a result of the application of engineering resources to this internally-funded development, contract services revenue for the year declined modestly. Production revenue for the fiscal year ended March 31, 2004 declined due to reduced shipments of propulsion motors for electrically powered wheelchairs, and was partially offset by a year-over-year increase in low volume product sales which rose $161,713. The divestiture of our contract electronics manufacturing business was completed in May 2004 and contributed $900,000 in cash at closing. Losses incurred by this discontinued business for the quarter and fiscal year ended March 31, 2004, including a loss on disposal of $770,434, were $1,363,337 or $0.07 per common share and $3,364,638 or $0.18 per common share, respectively, representing 72 percent and 70 percent of consolidated net loss for each period, respectively. Continuing operations reflect the operations of the Company's engineering and product development activities as well as motor manufacturing operations by our wholly-owned subsidiary UQM Power Products, Inc." "With the divestiture of our contract electronics manufacturing business now completed, we are focusing our full attention on the enhancement and commercialization of our proprietary technology," said William G. Rankin, UQM Technologies President and Chief Executive Officer. "During the fiscal year we began commercial production of a blower motor for use in the air conditioning system on a military aircraft and we expect to introduce additional products next year. The improvement in the performance of our motors resulting from the new method of control, together with our previously announced enhancement that allows our propulsion systems to deliver a 10 to 1 constant power speed ratio, has us well positioned to capitalize on the expanding market for hybrid electric vehicles. Interest in our Company and our proprietary technology accelerated throughout the year and included the addition of Caterpillar, Eaton Corporation, General Dynamics and two additional tier one automotive suppliers to our roster of blue chip customers. We expect this trend to continue for the foreseeable future as hybrid electric vehicles gain market share in the on-road automobile, truck and bus markets, the markets for a wide range of off-road equipment and vehicles and the defense industry where a variety of manned and unmanned combat vehicles are being developed as part of the military's initiative to develop a more deployable fighting force. In March 2004, Ron Burton, a seasoned motor manufacturing executive joined the Company as Vice-President of Operations, and we expect under Ron's leadership to more rapidly exploit the numerous commercial opportunities we see for our technology." Separately, the Company announced that Richard L. Hugen, Vice President of Marketing and Sales, will retire on June 30, 2004. For the last seventeen months, Mr. Hugen has served as General Manager of UQM Electronics, Inc. Commenting on the retirement, Mr.Rankin said, "Dick has made numerous contributions since joining our Company as Director of Marketing and Sales in 2000 and we wish him well in his retirement. Effective with Dick's retirement, Ron Burton will assume responsibility for the Company's marketing and sales activities." The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the quarter and fiscal year ended March 31, 2004. To attend the conference call, please dial 1-415-904-7366 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 at 6:30 p.m. Eastern Daylight Time today. To access the playback call 1-402-977-9140 and give reservation number 21196780. 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 and the adequacy of the Company's 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-K for the fiscal year ended March 31, 2004 and is available through our website at uqm.com or at sec.gov. UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations Quarter Ended March 31, Year Ended March 31, 2004 2003 2004 2003 Revenue: Contract services $538,319 759,828 2,747,833 2,985,639 Product sales 226,485 799,237 2,293,071 4,566,721 764,804 1,559,065 5,040,904 7,552,360 Operating costs and expenses: Costs of contract services 529,998 607,965 2,215,196 2,506,944 Costs of product sales 220,880 714,780 1,960,549 3,891,895 Research and development 66,818 15,004 461,223 117,735 General and administrative 488,394 448,795 1,799,472 2,245,182 Write-down of assets 28,359 26,384 30,523 26,384 1,334,449 1,812,928 6,466,963 8,788,140 Loss from continuing operations before other income (expense) (569,645) (253,863) (1,426,059) (1,235,780) Other income (expense): Interest income 7,406 6,444 26,362 28,035 Interest expense (18,277) (21,770) (84,193) (62,266) Gain on sale of real estate -- -- -- 322,139 Gain on sale of Taiwan joint venture 60,975 -- 60,975 -- Other -- 18,864 600 14,365 50,104 3,538 3,744 302,273 Loss from continuing operations (519,541) (250,325) (1,422,315) (933,507) Discontinued operations: Loss from operations of discontinued gear division -- -- -- (184,971) Loss from operations of discontinued electronic products segment (including loss on disposal of $770,434) (1,363,337) (589,315) (3,364,638) (2,480,172) (1,363,337) (589,315) (3,364,638) (2,665,143) Net loss $(1,882,878) (839,640) (4,786,953) (3,598,650) Net loss per common share - basic and diluted Continuing operations $(.03) (.01) (.07) (.05) Discontinued operations (.07) (.03) (.18) (.14) $(.10) (.04) (.25) (.19) Weighted average number of shares of common stock outstanding - basic and diluted 19,572,571 18,844,504 19,172,680 18,789,243 UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2004 March 31, 2003 Assets Current assets: Cash and cash equivalents $3,005,709 2,476,276 Accounts receivable 512,995 1,034,002 Costs and estimated earnings in excess of billings on uncompleted contracts 245,984 187,484 Inventory obligations of certain customers, net -- 789,767 Inventories 428,438 1,620,262 Prepaid expenses and other current assets 72,649 112,568 Assets of discontinued operations 1,226,943 -- Total current assets 5,492,718 6,220,359 Property and equipment, at cost: Land 181,580 181,580 Building 2,292,687 2,296,957 Machinery and equipment 2,793,343 6,962,596 5,267,610 9,441,133 Less accumulated depreciation (2,732,291) (4,944,608) Net property and equipment 2,535,319 4,496,525 Patent and trademark costs, net of accumulated amortization of $360,260 and $276,218 692,371 751,473 Other assets 850 24,205 $8,721,258 11,492,562 March 31, 2004 March 31, 2003 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $392,474 975,344 Other current liabilities 258,258 794,575 Current portion of long-term debt 125,611 116,921 Commitments of discontinued operation 746,682 -- Billings in excess of costs and estimated earnings on uncompleted contracts 189,252 223,378 Total current liabilities 1,712,277 2,110,218 Long-term debt, less current portion 946,423 1,072,341 Total liabilities 2,658,700 3,182,559 Stockholders' equity: Common stock, $.01 par value, 50,000,000 shares authorized; 19,572,625 and 18,844,515 shares issued and outstanding 195,726 188,445 Additional paid-in capital 58,025,631 55,885,486 Accumulated deficit (52,142,981) (47,356,028) Accumulated other comprehensive loss -- (384,300) Note receivable from officer (15,818) (23,600) Total stockholders' equity 6,062,558 8,310,003 $8,721,258 11,492,562 The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the year ended March 31, 2004: Mechanical Electronic Technology Products Products Total Revenue $3,339,939 1,700,965 -- 5,040,904 Interest income 22,054 4,308 -- 26,362 Interest expense (3,704) (80,489) -- (84,193) Depreciation and amortization (278,894) (168,558) -- (447,452) Write-down of assets (30,523) -- -- (30,523) Segment loss from continuing operations (1,289,738) (132,577) -- (1,422,315) Net loss (1,289,738) (132,577) (3,364,638) (4,786,953) Assets of continuing operations 4,705,076 2,789,239 -- 7,494,315 Assets of discontinued operations -- -- 1,226,943 1,226,943 Total segment assets 4,705,076 2,789,239 1,226,943 8,721,258 Expenditures for segment assets $(175,303) (27,554) -- (202,857) The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the year ended March 31, 2003: Mechanical Electronic Technology Products Products Total Revenue $3,416,032 4,136,328 -- 7,552,360 Interest income 26,586 1,449 -- 28,035 Interest expense -- (62,266) -- (62,266) Depreciation and amortization (311,440) (203,732) -- (515,172) Write-down of assets (15,886) (10,498) -- (26,384) Segment earnings (loss) from continuing operations (1,003,034) 69,527 -- (933,507) Net loss (1,003,034) (115,444) (2,480,172) (3,598,650) Assets of continuing operations 4,167,175 3,055,249 -- 7,222,424 Assets of discontinued operations -- -- 4,270,138 4,270,138 Total segment assets 4,167,175 3,055,249 4,270,138 11,492,562 Expenditures for segment assets $(319,224) (1,093,430) -- (1,412,654) DATASOURCE: UQM Technologies, Inc. CONTACT: Donald A. French, Treasurer of UQM Technologies, Inc., +1-303-278-2002 Web site: http://www.uqm.com/

Copyright