Dr. Buiel will discuss how Axion’s lead carbon PbC Technology™ overcomes many of the barriers facing conventional lead acid AGM batteries, thus opening the doors to several potential markets for Axion’s PbC® batteries.
Axion Power is positioned to become a leading provider of low-cost batteries for hybrid electric vehicles, particularly those classed as "micro" and "mild" hybrids. This is in addition to Axion’s energy storage solutions for the even larger markets that encompass power quality, grid balancing, peak shaving, and the storage of energy from off-grid renewable sources of energy such as wind and solar. Axion also continues to pursue various military applications in keeping with their DoD contract and with other military opportunities.
More information about the conference can be found at: www.advancedautobat.com
Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion’s new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced PbC® batteries, announced financial results for its quarter ended March 31, 2010.
Net sales for the 2010 first quarter were $0.5 million with a net loss of $1.4 million or $0.02 per share, compared to net sales of $0.3 million with a net loss of $ 1.1 million or $0.04 per share during the first quarter of 2009. Of the improvement in net sales for the first quarter of 2010 as compared to the same period in 2009, service sales to a strategic partner accounted for 75% of the increase while product sales of our traditional lead acid batteries to existing customers accounted for the remaining 25% increase.
Loss before income taxes, excluding non-cash items, was $1.7 million in the first quarter of 2010, with no change as compared to the same period in 2009. The increase in gross profit was offset by higher non-cash operating expenses for the first quarter of 2010 compared to the same period in 2009.
At March 31, 2010 cash, net of debt, was $20.5 million. Total assets were $27.4 million and total stockholders’ equity was $23.2 million.
"Our core technology and our PbC batteries continue to demonstrate their capabilities in a variety of important applications," said Axion Power CEO Thomas Granville. "Our strategic partners include Exide Technologies, one of the largest battery suppliers in the world with a significant presence in transportation globally. But whether it’s the micro or mild hybrid vehicle market, mass transportation, off-grid storage of renewable energy, grid balancing or buffering, remote power sourcing or military applications, we believe our PbC technology will prove to be a low-cost, fully recyclable energy storage technology. Currently, we are exploring the development of solar power storage systems, solar powered electrical charging stations and new products for ‘Smart Grid’ systems, with potentially large, global markets and with important strategic partners.
"We made excellent progress in 2009 and in 2010 we are continuing to work with some very large potential customers in testing and pilot programs, and our goal is to be able to launch some noteworthy contracts this year, as well as to advance the phased testing of our PbC technology with Exide and others. In the first quarter, we began a process to strengthen our team that is ongoing. Our $26 million private placement at the end of 2009 has allowed us to improve our management team, increase our overall talent pool and reward existing team members, as well as make strides with our products and processes. So far we are very pleased with the results," Granville concluded.
Company accomplishments in the first quarter of 2010 include:
* Award of a $300,000 Pennsylvania CFA state grant in February 2010, to develop a renewable solar energy storage system based on our proprietary PbC PowerCube(TM) battery technology to be used within a "Smart Grid" system.
* In accordance with our business plan and with a portion of the proceeds of our $26 million common stock offering in late December 2009, we engaged a well known design and fabrication company to supply 2 new stations to our first prototype carbon electrode production line and to design a second-generation version of the current manufacturing line. Work continues on schedule on both projects.
* Award in January 2009 of an $800,000 first-year grant from the Pennsylvania Alternative Fuels Incentive Grant program as part of the Commonwealth’s overall effort to invest in businesses that are creating important and innovative clean energy and bio-fuels technologies. Award proceeds will be used to demonstrate the advantages the Axion proprietary PbC battery technology provides in a variety of electric vehicle types including: hybrids (HEVs); "plug-ins" (PHEVs) used in commuter, delivery and other vehicles; and in EV’s and converted (from combustion engine operation) EV’s. Work on this project continued in the first quarter and we anticipate completion of the project in the second quarter of 2010.
Subsequent to the end of the 1st quarter:
* We received the final contract documents and began work on federal contract number N00014-10-C-0094 for the development of new lightweight, high-powered PbC batteries for use in vehicles operated by the U.S. Marine Corps. This contract awards $1,004,747 to us in billings for this project. We expect to be able to complete and bill at least 90% of this contract in 2010.
* On April 21 2010, it was announced that our $3,000,000 proposal for the second phase of the ONR Navy and Marine Corps project was recommended for approval, and advanced to final sub-committee hearings, by Pennsylvania’s two U.S. Senators and a Congressman from nearby Ohio.
* In April, we brought three new executives to Axion. Charles Trego is our new Chief Financial Officer and comes to us with more than 25 years of CFO experience with both public and private companies. Philip Baker was appointed to a new position at Axion, Chief Operating Officer, and previously held similar positions with large manufacturing companies including lead acid battery manufacturing. Jack Shindle was appointed Vice President of Manufacturing Engineering. Jack held similar positions in the fuel cell industry where he was responsible for commissioning automated manufacturing equipment. We are also well into the process of strengthening our team by extending the contracts of existing team members.
Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes.
It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers.
Axion’s future goal, after filling their plant’s lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.
