Electrovaya Reports Financial Results for Q1 2017
Toronto, Ontario – February 13th, 2017 – Electrovaya (TSX:EFL) (OTCQX:EFLVF) today reports its financial results for the fiscal quarter ending December 31, 2016. All numbers are in US dollars. Financial Highlights: This reporting quarter Q1, FY 2017 (Q4, CY2016), was part of the transition period as we and our OEM partners develop new products and markets based on our lithium ion batteries.
- Q1 2017 revenue is $1.1 million (Cdn $1.4m) for the quarter ended December 31, 2016, compared to Q1 2016 revenue of $8.2 million (Cdn $10.8m).
- The net loss for Q1 2017 is $2.4 million (Cdn $3.2m) compared to the net profit for Q1 2016 of $3.3 million (Cdn $4.3m).
- Cash and restricted cash totaled $5.4 million (Cdn $7.1m) as at December 31, 2016 compared to $3.3 million (Cdn $4.3m) at December 31, 2015.
- Inventory is $17.9 million (Cdn $23.5m) as at December 31, 2016 as compared to $9.8 million (Cdn $12.9m) for December 31, 2015.
- Battery Assemblers: Miscellaneous sales of Cells and Modules: certain battery assemblers use our products and those relationships continue.
- Materials Handling Sector sales to OEM: Electrovaya work on a Multiyear Master Service Agreement (MSA) with a NYSE Fortune 1000 OEM continues. A second major OEM in the materials handling sector has now started trials with the Electrovaya battery
- Materials Handling Sector sales directly to the end user: Electrovaya announced on 14th November 2016 battery products for the fork lift materials handling market which can be delivered directly to the fork-lift user and is a drop-in replacement for the user’s lead acid battery. Trials are now underway with multiple users in this sector.
- Electric bus sector: A number of analysts have identified the electric bus sector as an important application for lithium ion batteries. Electric buses work multiple shifts and are usually diesel powered. Cities are planning to move away from having polluting diesel fleets and replace them with full electric buses. Growth in this business is in Asia and Europe. Electrovaya is working in this sector with an OEM battery assembler and that development work is continuing.
- Residential Energy Storage Sector: Certain jurisdictions are showing interest in this niche sector. Electrovaya has clients and module based products in this sector.
- Electric-Mobility and Electric Delivery Truck sector: Electric delivery trucks are an attractive sector for full electric vehicles. Electric delivery trucks work 8-12 hours a day and usually operate in the inner core of cities with frequent stops. There are strong incentives to move from petrol and diesel powered vehicles to full electric. Electrovaya believes this is an important industrial sector and as earlier announced, Electrovaya is working with an OEM in this sector. Development work on this project is continuing. Electrovaya has started working with other companies in this electro-mobility sector and as announced earlier, is working with another Fortune 1000 NYSE company where Electrovaya is designing the complete battery system for integration into the OEM’s off-road electric vehicle.
- Utility and Grid connected systems: The system for ConEdison will have cells with the SeparionTM, ceramic embedded separator to give longer cycle-life and higher safety to the system.
- Personnel: Murray Pickrem joins us as Director of Sales, USA. Murray has extensive experience in sales in the Materials handling sector. Additionally we are adding more senior staff with experience in Engineering, Project Management and NPI (New Product Introduction) and also augmenting our sales team in Germany and North America
- Trade Shows, Expositions and Financial Conferences: Electrovaya presented its technology in key trade shows including Euro Bus Expo in UK and Cargo Logistics in Vancouver, BC (February 2017). In the Financial sector, Electrovaya spoke at the Barclays Energy Revolution Conference in December 2016, Exane BNP Paribas’ Disruptive Technology in December 2016, and also attended the Roth New Industrial conference in NYC in December 2016. Electrovaya presented at the German Batterie Forum in Berlin and at the Canadian Power Finance conference in Toronto, both in January 2017
- Cell Energy Density: A continuous development program is underway to increase the energy density of its cells and in August, 2016 a 44Ah cell was announced which increased the energy density of the 40Ah cell announced earlier in November 2015. A road map for continual increase in energy density is an important research objective for Electrovaya and the next generation cell with higher energy density is expected to be launched in CY2018
- Safety: Safety is becoming an important challenge in lithium ion batteries and a key differentiating factor with customers. Next generation lithium ion cells with higher energy density has greater propensity for safety incidents. Electrovaya’s ceramic separator, SeparionTM , is an important technology for enhancing safety.
- Systems Design and NPI (New Product Introduction): large efforts continue in this area as the demand for complete systems in different applications needs different engineering system design and optimised performance parameters.