ISE Limited Announces Unaudited Fourth Quarter and Full Year 2009 Financial Results
ISE Limited, a developer, manufacturer and distributor of heavy duty hybrid-electric drive systems, provided a summary of fourth quarter and fiscal year ended December 31, 2009 financial results.
Revenue increased to $18.4 million in Q4 2009, an increase of 185% from $6.5 million in Q4 2008, due primarily to recognition of revenue from zero-emission (fuel cell) hybrid systems that carry a higher average selling price than gasoline hybrid systems. Gross profit, excluding the $3.3 million charge for retrofit costs, was approximately $1.3 million in Q4 2009, compared to a gross loss of $624,000 in Q4 2008. Operating expenses were $4.0 million in Q4 2009, compared to $3.5 million in Q4 2008. R&D was $1.2 million in Q4 2009, compared to $948,000 in Q4 2008, reflecting increased investment in energy storage and power electronics. Net loss from operations was $6.0 million in Q4 2009, and excluding the $3.3 million charge for retrofit costs, it would have been $2.7 million in Q4 2009, compared to $4.1 million in Q4 2008.
Revenue, including the aforementioned zero-emission hybrid systems, was $44.4 million in FY 2009, compared to $19.4 million in FY 2008. Gross loss was $1 million in FY 2009, representing an approximate 560 basis point improvement in gross margin percentage, compared to a gross loss of $10.9 million in FY 2008. Excluding the $3.3 million charge for retrofit costs in Q4 2009, gross profit would have been approximately $2.3 million in FY 2009, representing a gross margin percentage improvement of more than 600 basis points over FY 2008. Operating expenses were $14.5 million in FY 2009, compared to $13.8 million in FY 2008. R&D was $5.1 million in FY 2009, compared to $2.3 million in FY 2008, reflecting increased investment in energy storage and power electronics. Net loss from operations was $15.5 million in FY 2009, and excluding the $3.3 million charge for retrofit costs, it would have been $12.2 million in FY 2009, compared to $24.7 million in FY 2008.
"Our significant revenue growth and gross margin improvement for the full year 2009 demonstrates our strengthening reputation as a leading developer, manufacturer and distributor of heavy duty hybrid-electric drive systems, in particular providing hybrid-electric and all-electric/zero emission technologies to transit agencies throughout North America," stated Rick Sander, CEO and President of ISE. "On February 23, 2010, we completed our initial public offering and began trading on the Toronto Stock Exchange. We continue to invest in our core technology of energy storage, power electronics and controls software to maintain our leadership position in hybrid-electric and all-electric/zero emission drive systems. We are also focused on our long-term strategy for growth, which is to pursue promising areas such as the energy storage market."
"ISE’s public listing comes at a time when the company is experiencing strong growth, as evidenced by the 128% increase in revenue and over 560 basis point improvement in gross margin from 2008 to 2009," stated David Morash, CFO and Treasurer of ISE. "We are excited to be the first U.S.-based, venture capital backed, clean-technology company listed on Toronto Stock Exchange. We believe it demonstrates not only the confidence behind our technology, but also the strength of the management team to execute on our strategy to provide value to the company and its shareholders."
