Inverpower Controls Reports Second-Quarter 2001 Results
Inverpower Controls Ltd. (Canada) reported on the company's operating results for the second quarter of fiscal 2001, ending January 28, 2001. Inverpower recorded revenue of $2.1 million for the quarter, compared to $2.0 million for the same quarter in the prior year. Excluding revenue generating by the JME product line, which Inverpower divested in fiscal 2000, comparative prior year revenue was $1.6 million. Corresponding with the revenue, the company's orders backlog at the end of the second quarter was approximately $1.8 million.
Research and development in the second quarter of 2001 escalated to $0.5 million, a $0.2 million growth over the first quarter of 2001. Second-quarter earnings before depreciation, amortization, accretion, interest and income taxes was a loss of $1.0 million, comparable to the results of the same period in the previous year, despite the 65-percent increase in research and development expenditures. Inverpower netted a loss of $1.6 million for the second quarter, or $0.19 per share, compared to the prior year's net loss of $1.2 million, or $0.15 per share.
As previously disclosed, the company has been receiving funding from its existing investor group in support of its alternative energy activities. Although Inverpower accrues interest on these financing arrangements, the company's debt-holders have agreed to defer payment and, as such, neither the quarter's interest expense of $0.3 million nor $0.1 million of convertible debenture option accretion had a cash impact on the second-quarter results.