Electrovaya Announces Q2 2010 Financial Results

Electrovaya Inc. 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.

"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."