VLNC BAD EARNINGS REPORTED!!!!!!!
Valence Technology Reports Fiscal 2007 Fourth Quarter and Year-End Financial Results
Last Update: 1:21 PM ET Jun 13, 2007
AUSTIN, Texas, Jun 13, 2007 (BUSINESS WIRE) -- Valence Technology, Inc. (VLNC : Valence Technology Inc
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1:15pm 06/13/2007
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VLNC1.22, +0.03, +2.5%) , a leader in the development of safe Lithium Phosphate Cathode Materials and Intelligent Lithium Phosphate Packs, today reported financial results for its fiscal fourth quarter and year ended March 31, 2007.
Highlights for fiscal 2007 include the following:
-- Realized a positive 2 percent gross margin versus negative 48 percent in fiscal 2006; this is the Company's first annual positive manufacturing gross margin
-- Reduced operating expenses by $2.9 million or 15 percent
-- Decreased operating loss by $11.4 million or 41 percent
-- Launched U-Charge(R) Generation 2 product line
-- Large-format battery systems sales represented 76 percent of the sales mix, compared to 56 percent for the prior year
-- Trial systems launched with approximately 80 corporations.
"I believe we are well positioned to gain market share with our family of lithium phosphate products. Our advanced lithium phosphate products offer twice the run-time and a significantly lower total cost of ownership than many of today's lead-acid products. We are entering a new area of commercial expansion. The key to our success will be applying our technology to targeted new and rapidly emerging markets," said Robert L. Kanode, president and chief executive officer of Valence Technology.
Financial Results
For the fourth quarter of fiscal 2007, the company reported revenue of $4.8 million, up 39 percent from $3.5 million for the fourth quarter of fiscal 2006. The company reported a net loss of $6.0 million, or $0.05 per basic and diluted share, compared to loss of $9.6 million, or $0.11 per basic and diluted share, for the fourth quarter of fiscal 2006.
Revenues for fiscal year 2007 were $16.7 million, down 3 percent from $17.2 million in fiscal 2006. The company reported a net loss of $22.4 million for fiscal 2007, or $0.22 per basic and diluted share, compared to net loss of $32.9 million or $0.37 per basic and diluted share for fiscal 2006. Operating expenses were $16.5 million, down 15 percent from $19.4 million for fiscal 2006. Gross margin as a percentage of revenue was positive 2 percent for fiscal 2007 and negative 48 percent for fiscal 2006.
Fiscal 2007 Financial Results Conference Call and Webcast
The Valence management team will host a conference call and live webcast to discuss fiscal 2007 financial results beginning at 3:00 p.m. CDT on Wednesday, June 13, 2007. To participate in the conference call, dial 800-819-9193 and enter the conference identification number: 4875787. A telephonic replay will be available from 5:00 p.m. CDT on June 13, 2007 through 11:59 a.m. CDT on June 19, 2007. To access the replay, please dial 719-457-0820 and enter the following identification number 4875787.
