Azure Dynamics Loss Grows As Revenue Falls
The Oak Park hybrid and electric truck power train developer Azure Dynamics Corp. (OTC: AZDDF) reported a third quarter loss of $6.4 million or 1 cent a share, worse than a loss of $5.7 million or 1 cent a share in the third quarter of 2009.
Revenue for the quarter was $1.8 million, down from $3.2 million in the same quarter a year earlier.
For the nine months, the loss was $17.4 million or 3 cents a share, vs. a loss of $19.8 million or 5 cents a share in the first nine months of 2009. Revenue for the nine months was $8.5 million, up from $5 million in the first nine months of 2009.
"Although revenues for the quarter were at the lower-end of our expectations, we continue to expect sales on the Balance Hybrid Electric product for 2010 to hit our targets," said Scott T. Harrison, Azure Dynamics CEO. "Sales were impacted by the transition to the Johnson Controls-Saft battery pack to ensure the Balance Hybrid Electric product included the latest lithium-ion technology as well as the other engineering updates aimed at improving reliability, durability and efficiency. This new battery pack was the single largest contributor to our previously stated -- and now implemented -- product cost reduction plan for the Balance Hybrid Electric, which will strengthen gross margins going forward. We are now well positioned to achieve record revenues in the fourth quarter led by our substantially lower cost Balance Hybrid Electric product."
Harrison also said the electric version of the Ford Transit Connect small commercial van, with drive train by Azure, continues toward its scheduled April 2011 launch.
"Since announcing the Transit Connect Electric LEAD customer program in March, 2010, six of the 10 LEAD customers in North America have placed orders totaling more than 90 units, in line with our initial expectations for the 10 LEAD customers," Harrison said. "We expect the remaining four LEAD customers to place orders during the fourth quarter. In addition, the product was successfully introduced to the European market with a well publicized appearance at the Hanover, Germany auto show. The European launch is expected to occur in second quarter of 2011."
In October, 2010, the Company obtained a $4 million credit facility to provide an additional source to help fund working capital requirements.
The company's financial statements and a complete management's discussion and analysis is available at www.azuredynamics.com. The Web site will also host a replay of a conference call discussing the results.
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