Azure Dynamics Reports Revenue Tripled, Slightly Higher Loss
The Oak Park hybrid and electric truck powertrain developer Azure Dynamics Corp. (OTC: AZDDF) Wednesday reported a threefold increase in revenue for the the quarter ended Dec. 31.
Revenue for the quarter rose to $13.4 million from $4.4 million a year earlier.
For the full year, revenue rose 133 percent to $21.9 million from $9.4 million a year earlier, as the company moves out of startup mode and into production mode.
The company sold 381 units in the fourth quarter, up 14 percent from 178 a year earlier, and 832 units for the year, up 148 percent from 335 in 2009.
For the fourth quarter, the loss was $10.8 million or 2 cents a share, vs. a loss of $8 million or 2 cents a share in the fourth quarter of 2009. For 2010, the loss was $28.1 million or 5 cents a share, vs. a loss of $27.8 million or 7 cents a share in 2009.
"We are very pleased with our record fourth quarter and full year revenues, which met our expectations despite a sluggish, but improving commercial truck market," said Scott Harrison, CEO of Azure Dynamics. "During the fourth quarter, we shipped a record 381 vehicles, including 30 Transit Connect Electric vehicles, which were more than our entire 2009 vehicles shipments of 335 units and demonstrates the strength of our business model. We are winning with new and repeat customers and showing it with significant revenue growth -- growth that we expect to be even more dramatic in 2011."
As of Dec. 31, the company's cash and cash equivalents totaled $11.8 million and working capital totaled $9.6 million. Additionally, in October, 2010, the company obtained a $4 million credit facility to provide an additional source to help fund working capital requirements.
Subsequent to year-end, on Feb. 8, the company closed on the sale of 61 million common shares which resulted in $20.1 million of gross proceeds to fund its ongoing product development and commercialization efforts as well as general corporate purposes.
"With our stronger balance sheet and the added financial flexibility, we believe Azure is well positioned to capitalize on the increasing demand for our products and on the opportunities to integrate our technology onto additional market leading commercial vehicles," Harrison said. "Additionally, with the threat of continued higher fuel prices, the growing concern for the environment and continued government incentive programs, Azure's outlook is promising."
The global light and medium duty commercial truck markets are expected to continue their gradual recovery during 2011. The Transit Connect Electric has been successfully introduced in North America and in Europe with the manufacturing launch scheduled for April and June, respectively. Based on the company's current backlog and future order expectations, 2011 revenues are expected to be in a range of $52 million to $68 million. The company expects 2011 results to be significantly stronger in the second half of the year due to the launch of Transit Connect Electric, as well as the first and second quarters being typically the slowest due to the seasonality of order flow. Unit volume for 2011 is expected to be in the range of 1,300 to 1,500 units, consisting of approximately 700 to 800 Balance Hybrid Electric drive-trains and LEEP systems and 600 to 700 Force Drive Electric drive-trains for the Transit Connect Electric.
More at www.azuredynamics.com.
