Toronto, Ontario – Electrovaya Inc. (TSX: EFL) today announced financial results for the first quarter of fiscal 2006. All figures are in US dollars. Highlights For the quarter ending December 31, 2005: Revenue decreased by 60.4% or $900,000 to $588,000 from $1,488,000 for the quarter ended December 31, 2004. Loss from operations, before interest, taxes, foreign exchange and amortization decreased by 40,000 or 3.8% to $1,016,000 compared to $1,056,000 in the same quarter in the prior year. Cash & investments were $11.4 million as at December 31, 2005, compared to $12.2 million as at September 30, 2005 and $13.5 million as at December 31, 2004
Three Months Ending December 31, 2005
For the three month period ended December 31, 2005, total revenue decreased by 60.5% to $0.6 million from $1.5 million for the quarter ended December 31, 2004. The decrease intotal revenue primarily resulted from a reduction in aerospace revenue.
Revenue less Direct Manufacturing Costs was a loss of $39,000 for the three months ended December 31, 2005, compared to a profit of $24,000 or 1.61% of revenue for the three months ended December 31, 2004.
Research and development expenses, net of investment tax credits, increased by $27,000 or5.9% to $488,000 for the quarter ended December 31, 2005 from $461,000 for the same three month period in 2004 due primarily to an increase in material utilization and consulting fees. During the three month period ended December 31, 2005, the Company received $219,000 of cash contributions from Technology Partnerships Canada (TPC), compared to $312,000 received during the three months ended December 31, 2004.
For the quarters ended December 31, 2005 and 2004, sales and marketing expenses were $174,000 and $274,000 respectively. The $100,000 decrease was primarily due to decreased salaries, advertising and trade show costs compared to the same quarter in the prior year.
General and administrative expenses decreased by $123,000 to $534,000 for the quarter ended December 31, 2005 compared to $657,000 for the same period in the prior year. Thedecrease primarily reflects a decrease in salaries and consulting fees.
Quarterly net losses improved from $1,952,000 to $1,193,000, or by $759,000 or 38.9%, compared to the same quarter in the prior year due to lower operating costs and reduced amortization expense.
The loss per share for the quarter was $0.02, compared to $0.03 for the quarter ending December 31, 2004.
About Electrovaya Inc. Electrovaya (TSX: EFL) is a developer and manufacturer of portable power solutions with its proprietary Lithium Ion SuperPolymer(R) battery technology. Its goal is to become the preferred provider of Tablet PCs, portable power for aerospace and wireless sectors, and the developer of alternative energy applications including UPS, stand-by power, plug-in hybrids and zero-emission vehicles. For more information on Electrovaya and its products, please visit www.electrovaya.com The Company’s shares trade on the Toronto Stock Exchange under the symbol EFL.
For more information aboutthe Company and its products, please visit our website at www.electrovaya.com.
For more information, please contact:
P. Hart,
Chief Financial Officer
Electrovaya Inc.
tel: 905-855-4636
email: plhart@electrovaya.com