Advanced Battery Technologies Announces First Quarter 2010 Financial Results
Advanced Battery Technologies, Inc. announced financial results for the first Quarter ending March 31, 2010.
The company had total revenues of $19.5 million for the three months ended March 31, 2010, an increase of $8.9 million or 82.9%, compared to $10.7 million for the three months ended March 31, 2009. The increase in revenues was primarily due to the contribution of sales from the electric vehicle business, which the Company acquired on May 4, 2009. Sales of electric vehicles for the three months ended March 31, 2010 totaled $9.1 million. Sales of batteries to Wuxi ZQ are included in the company’s 2009 financial results and excluded from our 2010 financial results, since the company acquired ownership of Wuxi ZQ in May 2009. During the quarter ended March 31, 2009 the company recorded $0.2 million in revenue attributable to sales to Wuxi ZQ.
During the three months ended March 31, 2010, gross profit was $9.6 million, an increase of 91.0% year-over year. Gross margin in the first quarter of 2010 was 49.2%, compared to 47.1% a year ago. The increase in gross margin is primarily attributable to the 52.0% margin achieved in sales of medium capacity batteries, which produced only 42.8% margin in the same period of 2009.
Operating income in the first quarter of 2010 was $7.0 million, an increase of 69.2% year-over-year, from $4.1 million in the prior year’s period.
Pre-tax income of $8.3 million in the first quarter of 2010, including a gain of $1.2 million from change in fair value of warrants, represents an increase of $3.6 million from the same period of 2009. After taxes of $0.7 million accrued in the three months ended March 31, 2010, the Company’s net income increased 85.1% to $7.5 million, or $0.11 per diluted share, from $4.1 million, or $0.07 per diluted share, in the same period of 2009.
Zhiguo Fu, CEO of ABAT, stated, "The increase in the portion of our revenue attributable to medium and large capacity batteries and electric vehicles has been beneficial to our overall business. The margins that we are able to achieve in selling larger capacity batteries are significantly greater than the margins we achieve in selling smaller capacity batteries, due primarily to the relative amount of competition in the different markets. We also show significant progress in our newly acquired electric vehicle business, which generated more sales to domestic and overseas customers in the first quarter and enhanced our top-line and bottom-line growth."