C&D Technologies Announces Fourth Quarter & Fiscal 2008 Full Year Results

C&D Technologies, Inc. announced financial results for the fiscal 2008 fourth quarter and full year ended January 31, 2008. Results for the quarter and all comparative financial data reflect the presentation of the Power Electronics Division ("PED") and Motive Power Division ("Motive") as discontinued operations. With these changes C&D’s continuing operations are solely comprised of results from the Standby Power Division.

For the quarter, the company reported a consolidated net loss of $10.3 million or $0.40 per diluted share compared to a net loss of $14.3 million or $0.55 per diluted share in the prior year’s fourth quarter. Net loss from continuing operations was $6.2 million or $0.24 per diluted share during the quarter, compared to $11.7 million or $0.45 per diluted share in the fourth quarter of fiscal 2007. Net loss from discontinued operations was $4.1 million or $0.16 per diluted share, compared to $2.6 million or $0.10 per share in the fourth quarter of fiscal 2007. Fourth quarter revenues for continuing operations were $94.5 million, up 23.1% compared to $76.8 million in the prior year’s fourth quarter and up approximately 3.5% sequentially from the third quarter of fiscal 2008.

Dr. Jeffrey A. Graves, President and CEO said, "In the fourth quarter we continued gaining momentum with both solid top line growth and significant progress in our cost reduction efforts consistent with our most important strategic initiatives. Standby Power, now our sole operation, posted strong revenues and its fifth consecutive quarterly revenue increase. For the quarter, while price increases implemented to compensate for the escalation in the cost of lead accounted for the majority of the revenue increase, we continued to be pleased with the volume strength given the general economic environment. These revenue trends continue to be driven by strong underlying fundamental strength in enterprise data center construction, expansion of the cable TV fiber-to-the-home infrastructure, telecom industry growth along with end of year buying, and continued moderate strengthening in the utility industry. With the divestiture of our other businesses now behind us, we are able to concentrate our full energies and focus on our strong Standby Power business and to leverage the growth of that business through additional cost reductions and efficiency improvements."

In the fourth quarter, loss from discontinued operations was $4.1 million or $0.16 per diluted share. These results reflect the operations of the Motive Power Division during the manufacturing transition period that lasted through the end of December, as well as additional impairment charges of approximately $1.5 million recognized in the quarter. The sale of both the Motive Power and Power Electronics Divisions are now complete.

For the year, the company reported a consolidated net loss of $18.5 million or $0.72 per diluted share compared to a net loss of $42.7 million or $1.67 per diluted share in the fiscal 2007. Net loss from continuing operations was $2.2 million or $0.09 per diluted share during for the current year, compared to $13.9 million or $0.54 per diluted share in fiscal 2007. Net loss from discontinued operations was $16.4 million or $0.63 per diluted share, compared to $28.8 million or $1.13 per share in fiscal 2007. Fiscal 2007 annual financial results included a $15.2 million gain on sale related to disposition of the company’s former manufacturing facility in Shanghai, China. Revenues for fiscal 2008 were $346.1 million, up 20.5% compared to $287.2 million in the prior year. Approximately 70% of the increase was due to pricing actions, with the balance attributable to volume growth.