Enova Reports Revenue Growth for Second Quarter 2010; Collaborates with Remy on New Electric Drive System; Smith Expects Tota...
August 12 2010 - 2:04PM
Business Wire
Enova Systems, Inc. (NYSE AMEX: ENA) (AIM: ENV) (AIM: ENVS), a
production company in an emerging industry and a leading developer
of proprietary electric, hybrid and fuel cell digital power
management systems, announced financial results for its second
quarter of fiscal year 2010 and noted positive highlights for the
year.
Highlights of the June 30, 2010 Quarter:
- Revenue for the second quarter
of fiscal 2010 was $2,054,000, up 257% from the fiscal 2009 second
quarter of $576,000 due primarily from sales to Navistar, Smith
Electric Vehicles (“Smith”) and First Auto Works. Revenue also
increased for the six months ended June 30, 2010 by $1,719,000 or
136% to $2,983,000 for the comparable period in 2009 due to sales
from the aforementioned customers and Freightliner Custom Chassis
Corporation (“Freightliner”).
- Gross margin was 14% in the
second quarter of fiscal 2010, up from a negative 6% in the
comparable second quarter of 2009. Gross margin also improved for
the six months ended June 30, 2010 to 13%, up from 6% for the
comparable period in 2009. Improvements in the gross margin for the
comparable quarters resulted from continued focus on key customer
production contracts as well as efficiencies gained via in-house
manufacturing.
- Net loss narrowed for the second
quarter of fiscal 2010 to $1,624,000 or a basic and diluted loss of
$0.05 per share from a net loss of $2,034,000 or a basic and
diluted loss of $0.10 per share for the comparable period in 2009.
Net loss also narrowed for the six months ended June 30, 2010 to
$3,343,000 or a basic and diluted loss of $0.11 per share compared
to a net loss of $3,690,000 or a basic and diluted loss of $0.18
per share for the comparable period in 2009.
Enova President and CEO Mike Staran commented, “We continue to
be encouraged by recurring revenue from our key customers Navistar,
First Auto Works, Smith Electric Vehicles, and Freightliner, as
well as political support from the U.S. government on alternative
fuel technologies.” Staran added, “Our new collaboration with Remy
on motor development, GSA’s intent on extending our contract,
Freightliner’s expected Q1 2011 entry into the production EV
segment, and Smith’s recent order continue to define our footprint
in the market.”
Other positive highlights:
- In response to government
funding for the manufacture of all-electric commercial trucks
powered by Enova drive systems, President Barack Obama recently
visited Smith’s new Kansas City manufacturing facility. A
cumulative $32 million grant from the Department of Energy (“DOE”)
is aimed at bringing down related production costs. Smith recently
submitted an order for 50 drive systems as part of expected total
volume of more than 250 drive systems for 2010.
- Enova was recently notified by
the General Services Administration (“GSA”) of their intent to
extend contract GS-30F-20027 for another year. Enova currently
manages this contract in collaboration with Freightliner and GSA to
supply all-electric step vans to the Federal government. The
all-electric step van lends itself as premier zero emissions
solution for Federal and commercial fleets in the Cargo Vans
category. Enova received its first order for its Ze solution
earlier this year.
- Freightliner, in partnership
with Enova Systems, continues to advance alternative fuel
technology with the plug in, all-electric walk-in chassis. New
model year vehicles are currently being tested with a production
target of Q1 2011.
- Enova also recently announced
that it plans to collaborate with Remy in the development of a new
electric drive system based on the Enova Omni Controller and Remy
High Voltage Hairpin (“HVH”) motor. Remy is North America's largest
independent manufacturer of advanced electric propulsion motors and
recently received final approval of a $60.2 million grant from the
DOE for accelerating the standardization and commercialization of
their HVH electric motor technology. Remy and Enova are targeting
markets in North America, Asia, Europe and India.
About Enova:
Enova Systems (http://www.enovasystems.com) is a leading
supplier of efficient, environmentally friendly digital power
components and systems products. The Company’s core competencies
are focused on the development and commercialization of power
management and conversion systems for mobile applications. Enova
applies unique ‘enabling technologies’ in the areas of alternative
energy propulsion systems for light and heavy-duty vehicles as well
as power conditioning and management systems for distributed
generation systems. The Company develops, designs and produces
non-invasive drive systems and related components for electric,
hybrid-electric, and fuel cell powered vehicles in both the “new”
and “retrofit” vehicle sales market. For further information,
contact Enova Systems directly, or visit its Web site at
http://www.enovasystems.com.
ENOVA SYSTEMS, Inc. 1560 West 190th Street Torrance, CA 90501 Tel:
310-527-2800
Contact: Jarett Fenton
CFO/Investor Relations
Additional Information:
This news release contains forward-looking statements relating
to Enova Systems and its products that are intended to be covered
by the safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking
terminology such as “believe,” “expect,” “may,” “will,” “should,”
“could,” “project,” “plan,’’ “seek,” “intend,” or “anticipate” or
the negative thereof or comparable terminology and statements about
industry trends and Enova’s future performance, operations and
products. These forward-looking statements are subject to and
qualified by certain risks and uncertainties. These and other risks
and uncertainties are detailed from time to time in Enova Systems’
periodic filings with the Securities and Exchange Commission,
including but not limited to Enova’s annual report on Form 10-K for
the year ended December 31, 2009.
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