ENER1 Reports First Quarter Results for 2010

May 10, 2010 by Jeff Shepard

ENER1, Inc. announced financial results for its first quarter ended March 31, 2010. Net sales were $11 million in the first quarter of 2010 compared to net sales of $8.2 million in the prior year first quarter. Net loss was $15.3 million in the first quarter of 2010 compared to $7.3 million in the 2009 first quarter. Basic and diluted net loss per share were $.12 and $.13 in the first quarter of 2010 compared to $.06 and $.08 in the first quarter of 2009. Weighted diluted shares outstanding were 125 million in the first quarter of 2010 compared to 113.5 million in the prior year quarter.

"This has been a productive quarter with EnerDel rapidly scaling up production at its three Indiana facilities to launch commercial production for THINK, the first fully homologated battery electric vehicle available for purchase today," commented Ener1 Chairman and CEO Charles Gassenheimer. "The completion of this substantial milestone positions EnerDel as among the first lithium-ion battery companies in the world producing automotive grade, high volume lithium-ion batteries, for which it will recognize revenues in the second quarter. With the Production Parts Approval Process in place on April 29, EnerDel has entered an acceleration phase to ramp up to 900 packs per month, a run-rate at which EnerDel expects to be EBITDA break-even."

"EnerDel continues to focus on building collaborative relationships with manufacturers of innovative electric vehicle platforms to produce industry-leading standards of quality and safety," continued Gassenheimer. "With today’s announcement, EnerDel has been named as the exclusive battery supplier for the Volvo C30 Pure Electric Vehicle, set for production in 2011 and mass release in 2013. We are truly excited about the C30 program, believing it to be a leapfrog product to a second generation electric vehicle design, currently undergoing the most rigorous set of crash-testing and safety systems in the industry."

"Volvo Cars is pleased to confirm EnerDel as the exclusive supplier of the C30 Pure Electric Vehicle after a successful development phase," commented President of Special Vehicles for Volvo Cars Lennart Stegland. "Our relationship with EnerDel is more than just a supply agreement; it is a true partnership, founded on the quality and safety of the EnerDel technology and chemistry and the excellent collaboration between the teams."

"There are many challenges to commercializing electric vehicle platforms, and EnerDel prides itself as being among the early leaders in the industry, delivering commercial product today," continued Gassenheimer. "We continue to collaborate closely with our customers over the life of the program to overcome technical hurdles, to deliver the highest quality performance and reliability standards in our product offerings and manufacturing systems. Our reputation in the industry has opened doors to new partnerships and strategic ventures, that we intend to leverage to gain access to new markets and new opportunities."