Toronto, Ontario –Electrovaya Inc. (TSX: EFL) today announced financial results for the third quarter of fiscal 2006. All figures are in US dollars.
Highlights
For the quarter ending June 30, 2006:ßRevenue increased by $147,000 or 17.2% from $855,000 to $1,002,000 compared to the quarter ending March 31, 2006.ßRevenue decreased by 8.6%or$94,000 to $1,002,000from $1,096,000 for the quarter ended June 30, 2005.ßLoss from operations, before interest, taxes, foreign exchange and amortization increased by $559,000 or 74.0% to $1,314,000 compared to $755,000 in the same quarter in the prior year.ßCash & investments were $10.3 million as at June 30, 2006, compared to $12.2 million as at September 30, 2005 and $10.4 million as at March 31, 2006.ßDuring the quarter, there was a gain on the sale of an investment of $887,000 (June 30, 2005 – NIL)
Three and NineMonths Ending June 30, 2006
Total Revenue. For the three month period ended June 30, 2006, total revenue decreased by 8.6% to $1.0 million from $1.1 million for the quarter ended June 30, 2005. For the nine month period ended June 30, 2006, total revenue declined by 35.0% or $1.3 million from $3.8 million to $2.4 million primarily due to lower consumer electronics revenue.
Direct Manufacturing Costs. For the quarter ended June 30, 2006, direct manufacturing costs increased by 11.1% or $94,000 to $944,000 from $850,000 for the quarterended June 30, 2005 For the nine months ending June 30, 2006, direct manufacturing costs decreased by 28.6% or $969,000 to $2.4 million from $3.4 million for the quarter ended June 30, 2005. This was primarily a result of lower material costs related to lower sales and lower manufacturing labor 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 $21,000 or 2.6% to $818,000 for the quarter ended June 30, 2006 from $797,000 for the same three month period in 2005 due primarily to an increase in labor & material and subcontract expenses. During the three month period ended June 30, 2006, the Company received $197,000 of cash contributions from Technology Partnerships Canada (TPC), compared to $407,000 during the three months ended June 30, 2005.Compared to the nine month period ending June 30, 2005, research and development expenses increased by $541,000 or 29.5% from $1.8 million to $2.4 million during the nine month period ending June 30, 2006. The Company attempts to redeploy resources wherever possible if these resources are not required for manufacturing activities, resulting in increased labor and material expenses compared to the same period the prior year.
Sales & marketing. For the quarters ended June 30, 2006 and 2005, sales and marketing expenses were $166,000 and $276,000 respectively.Compared to the nine month period ending June 30, 2005, sales and marketing expenses decreased by $393,000 or 45.1% from $872,000 to $479,000 during the nine month period ending June 30, 2006 due to lower salaries and benefits, advertising and trade show attendance expenses.General and administrative.
General and administrative expenses increased by 74.6% or $250,000 to $585,000 for the quarter ended June 30, 2006 compared to $335,000 for the same period in the prior year. The increase primarily reflects an increase in salaries and benefits and an increase in the provision for bad debts. Compared to the nine month period ending June 30, 2005, general and administration expenses of $1.6 million remained relatively unchanged.The loss per share for the quarter was $0.01, compared to $0.02 for the quarter ending June 30, 2005.
About Electrovaya Inc.
Electrovaya (TSX: EFL) is a developer and manufacturer of portable power solutions with its proprietary Lithium Ion SuperPolymer® 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. The Company’s shares trade on the Toronto Stock Exchange under the symbol EFL. For more information on Electrovaya and its products, please visit www.electrovaya.com.
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