Toronto, Ontario Electrovaya Inc. (TSX: EFL) today announced financial results for the first quarter of fiscal 2006. All figures are in US dollars.
HighlightsFor the quarter ending March 31, 2006:
Three and Six Months Ending March 31, 2006
Total Revenue. For the three month period ended March 31, 2006, total revenue decreased by 27.5% to $0.9 million from $1.2 million for the quarter ended March 31, 2005. For the six month period ended March 31, 2006, total revenue declined by 45.9% or $1.2 million from $2.7 million to $1.4 million primarily due to lower consumer electronics revenue.
Direct Manufacturing Costs. For the quarter ended March 31, 2006, direct manufacturing costs decreased by 20.9% or $226,000 to $854,000 from $1,080,000 for the quarter ended March 31, 2005. For the six months ending March 31, 2006, direct manufacturing costs decreased by 41.8% or $1.1 million to $1.5 million from $2.5 million for the quarter ended March 31, 2005. This was primarily a result of lower material costs related to lower sales and lower manufacturing labour costs as more time was spent on research and development activities.
Research and Development Expenses. Research and development expenses, net of investment tax credits, increased by $491,000 or 85.2% to $1,067,000 for the quarter ended March 31, 2006 from $576,000 for the same three month period in 2005 due primarily to an increase in labor & material expenses as certain manufacturing resources were diverted to research and development activities on the electric vehicle program and specialty battery projects. During the three month period ended March 31, 2006, the Company received$508,000 of cash contributions from Technology Partnerships Canada (TPC), compared to NIL during the three months ended March 31, 2005. Compared to the six month period ending March 31, 2005, research and development expenses increased by $520,000 or 50.2% from $1.0 million to $1.6 million during the six month period ending March 31, 2006.
Sales & marketing. For the quarters ended March 31, 2006 and 2005, sales and marketing expenses were $139,000 and $322,000 respectively. Compared to the six month period ending March 31, 2005, sales and marketing expenses decreased by $283,000 or 47.5% from $0.6 million to $0.3 million during the six month period ending March 31, 2006 primarily due to decreased salaries, warranty costs and trade show attendance costs compared to the same quarter in the prior year.General and administrative.
General and administrative expenses decreased by 11.7% or $67,000 to $524,000 for the quarter ended March 31, 2006 compared to $591,000 for the same period in the prior year. Compared to the six month period ending March 31, 2005, general and administration expenses decreased by $191,000 or 15.3% from $1.2 million to $1.1 million during the six month period ending March 31, 2006. The decrease primarily reflects a decrease in salaries as some of these resources assisted with research and development activities during the quarter.
Excluding the non-cash impact of the capital assets write-down, quarterly net losses improved from $2,360,000 to $1,442,000, or by $918,000 or 38.9%, compared to the same
quarter in the prior year.
The loss per share for the quarter was $0.08, compared to $0.03 for the quarter ending December 31, 2005.
About Electrovaya Inc.
Electrovaya (TSX:EFL) is a world leader in the field of portable power solutions with its award-winning, patented Lithium Ion SuperPolymer(R) battery technology. Its goal is to become the leading provider of tablet PCs, the premier supplier of portable power for aerospace and wireless sectors, and the principal technology champion in the development of alternative energy applications including UPS, stand-by power 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 about the 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