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Electrovaya Announces Q2 2010 Financial Results
Monday May 17, 6:00 am ET

Revenue Up 60% Versus Year Ago Quarter

Announced Major Clients and Projects in Electric Vehicles and Utility Scale Energy Storage

TORONTO, ONTARIO--(Marketwire - 05/17/10) - Electrovaya Inc. (TSX:EFL - News) today announced financial results for the second quarter of fiscal 2010 ended March 31, 2010. All figures are in US dollars.

Second Quarter Fiscal 2010 Financial Highlights

 

--  Revenue totaled $1,071,000, and increased by nearly 60% compared to
$675,000 in the same quarter of the prior year.

--  Net operating loss from operations, before interest, taxes, foreign
exchange and amortization, totaled $946,000 in the second quarter
compared to $249,000 in the same quarter of the prior year, with the
three months ending March 31, 2010. $0.4 million of this operating loss
is due to: non-cash stock option expense of $0.3 million and $0.1
million of one-time legal and software expenses.

--  Cash and cash equivalents were $3.4 million at March 31, 2010, down from
$5.2 million at December 31, 2009, due primarily to $1.3 million owing
from the Chrysler RAM PHEV and other programs and capital expenditures
of approximately $0.22 million. The Company has no debt and it owns its
15-acre land and its 156,000 square feet building, free and clear.

Business Highlights

 

--  In February 2010, Electrovaya was named as the energy storage partner
for a major $7.5 million initiative, addressing the rapidly growing and
evolving utility scale energy market. The project is led by CEATI and
will include multiple utilities.

--  In March 2010, former Chrysler CEO, Thomas W. LaSorda, joined
Electrovaya's Board of Directors and was appointed as Special Advisor to
Electrovaya's CEO, Dr. Sankar DasGupta.

--  In March 2010, Electrovaya announced that it was chosen by Chrysler
Group LLC as the battery supplier for its Ram truck plug-in hybrid
electric vehicle (PHEV) program. The RAM truck is one of Chrysler's best
selling vehicles and is the 2010 Truck of the Year. Electrovaya has
begun supplying complete battery packs for the RAM, which includes
Electrovaya's proprietary Lithium Ion SuperPolymer® cells manufactured
uniquely with its award winning clean manufacturing (NMP-free) process.
The battery packs are complete with cells, battery management system,
power electronics, thermal management, and mechanical packaging.

--  Also in March, it was announced that the U.S. Department of Energy is
supporting Chrysler with a grant of up to $48 million for its RAM PHEV
program with Electrovaya as its Lithium Ion Battery supplier.

"We achieved a number of significant milestones during the second quarter, capped by our announcement of Chrysler Group's decision to choose Electrovaya as its battery supplier for their Ram PHEV program, an important validation of our technology and our unique and zero-emission, NMP-free manufacturing process," commented Dr. Sankar DasGupta, Electrovaya CEO. "In addition, we are pleased to welcome Tom LaSorda to our team and look forward to benefiting from his industry knowledge and experience to help us capitalize on the tremendous opportunities in front of us in the electric vehicle market."

"In the very important and fast growing area of Utility Scale Energy Storage, we have been selected as the energy storage partner for large battery systems, where our large format Lithium Ion SuperPolymer® battery is ideally suited for mega watt hour level electricity storage applications," continued Dr. DasGupta. "This initiative increases our addressable market beyond the electric vehicle market, and illustrates how our technology and zero-emission manufacturing process is uniquely beneficial to the large scale utility and energy storage customers. Across the globe there is an urgent need to move electricity from off-peak to peak hours. Twinning a large battery with wind and solar renewable energy generation enables delivery of reliable green energy to users at peak times," concluded Dr. DasGupta.

Summary of Financial Results

 

---------------------------------------------------------------------------
In thousands of US $ except per share               3 months ended March 31
amounts                                              2010             2009
---------------------------------------------------------------------------
Revenue                                            $ 1,071          $   675
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Loss from operations before interest,
taxes, foreign exchange and
amortization. $0.4 million of this
operating loss for Q2, 2010, is due to:
non-cash stock option expense of $0.3
million, a $0.1 million of one-time
legal and software expenses.                      $   946          $   249
---------------------------------------------------------------------------
Loss for the period                                $ 1,243          $   237
---------------------------------------------------------------------------
Loss per share                                     $  0.02          $  0.01
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Cash & investments                                 $ 3,434          $ 3,447
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The Company's complete Fiscal 2010 Second Quarter and Annual Financial Statements and Management Discussion and Analysis are available at www.sedar.com or on the Company's website at www.electrovaya.com.