Highlights – Fiscal Third Quarter 2011
* Revenue increased 234% to $13.8 million, compared to $4.1 million in the third quarter of fiscal 2010.
* Gross margin increased to 20%, up from 12% in the year-ago quarter.
* Operating loss narrowed to $1.2 million, compared to a loss of $4.3 million in the year-ago quarter.
* Net loss available to common shareholders decreased to $2.0 million, or $0.01 per share, compared to a loss of $5.6 million, or $0.04 per share in the year-ago quarter.
* On a sequential basis, the Company experienced a 9% growth in revenue while its gross margins remained essentially flat at 20% compared to the second quarter of fiscal 2011.
Highlights – Fiscal Nine Months of 2011 Compared to Same Period of 2010
* Revenue increased 163% to $32.0 million, compared to $12.2 million.
* Gross margin increased to 20%, up from 13%.
* Operating loss narrowed to $7.5 million, compared to a loss of $13.6 million.
* Net loss available to common shareholders decreased to $10.3 million, or $0.07 per share, compared to a loss of $18.1 million, or $0.14 per share.
Executive Commentary
“Valence again posted considerable top and bottom line improvements during the third quarter. These improvements were due to increased sales to customers such as Smith Electric, Segway, and Howard Medical. The commercial fleet sector remains a strong component of our business, but we also continue to experience increased sales in the marine, industrial, and healthcare sectors. Regardless of market segment, we believe the power and safety of our patented lithium magnesium phosphate combined with years of on-the-road fleet experience offers Valence customers performance and reliability they can trust,” commented president and chief executive officer Robert L. Kanode.
Business Outlook
Valence expects fiscal fourth quarter revenue to be in the range of $13 million to $15 million. In addition, Valence expects full year fiscal revenue to be in the range of $45 million to $47 million compared to fiscal 2010 revenue of $16.1 million (a year over year increase of up to 192%).
Conference Call and Webcast:
Valence Technology will conduct a conference call today at 3:30 p.m. CT (4:30 p.m. ET) to discuss its third quarter fiscal year 2011 financial results. Interested parties may participate in the call by dialing (877) 375-1350 (international callers dial (253) 237-1153). No passcode is required. The conference call will also be webcast live and can be accessed by visiting Valence’s web site at www.valence.com and clicking on the following links: Investor Relations – Events & Presentations. To access the webcast, please go to this web site approximately fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. A replay of the webcast will be available on the company’s Web site at www.valence.com. A telephonic replay will also be available from 6:30 p.m. CT on February 2, 2011, through 6:30 p.m. CT on February 28, 2011. To access the replay, please dial (800) 642-1687 and enter conference passcode 35178882. Callers outside the United States and Canada can access the replay by dialing (706) 645-9291 and entering the conference passcode mentioned above.
About Valence Technology, Inc. is a global leader in the development and manufacture of safe, long-life lithium iron magnesium phosphate advanced energy storage solutions and integrated command and control logic. Headquartered in Austin, Texas, Valence enables and powers some of the world’s most innovative and environmentally friendly applications, ranging from commercial electric vehicles to industrial and marine equipment.
Valence Technology today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. In addition to the corporate headquarters in Texas, Valence Technology has its Research & Development Center in Nevada, its Europe/Asia Pacific Sales office in Northern Ireland, and global fulfillment centers in North America and Europe. Valence Technology is traded on the NASDAQ Capital Market under the ticker symbol "VLNC."
