Medis Technologies Reports First Quarter Results
Medis Technologies Ltd. reported financial results for the first quarter ended March 31, 2007. For the quarter ended March 31, 2007, the net loss attributable to common stockholders was $9,335,000, or $.27 per share, based on 34,934,411 weighted average shares, compared to a net loss attributable to common stockholders of $5,896,000, or $.21 per share, based on 28,229,241 weighted average shares for the quarter ended March 31, 2006. The net loss attributable to common stockholders for the quarter ended March 31, 2007 was impacted by non-cash expenses related to stock options accounted for in accordance with SFAS 123(R), "Share Based Payment" of approximately $1,657,000 and a dividend on our Series A preferred stock of approximately $1,001,000. During the period, the company continued to move forward in preparation for high volume production of its fuel cell Power Pack.
Commenting on the report, Robert K. Lifton, Chairman & CEO of Medis Technologies, stated: "The increase in net cash used in operating activities to approximately $6.9 million for the quarter ended March 31, 2007 reflects increased research and development costs relating to preparing our 24/7 Power Pack for high volume production, such as product testing, quality control, raw materials, cost reduction and other R&D activities, together with increased selling, marketing, general and administrative costs, as we position ourselves for high volume production. The first step in that program is to complete moving the automated line constructed by Ismeca in Switzerland to Celestica’s facilities in Galway, Ireland. The first of three zones making up the automated line has already landed in Ireland and is being re-assembled; a second zone is scheduled to be shipped there next week; and we expect the final zone to arrive in early June. June 28th is the day we have set for invited customers, suppliers and others to see the full line in place in Celestica’s facilities. At that time, the fuel line is also expected to be operational, although we expect that the packaging line will still take a few additional weeks to become fully operational. Once the automated line is fully re-assembled in Ireland, it must undergo a process of qualification, optimization, and re-listing for Underwriters Laboratories, which is expected to take much less time than the original listing process. Phasing in production will follow, with the aim of insuring quality and maximizing yield. After completion of these preparatory activities, we plan to start building production, by adding more volume each month, until we reach the line’s full capability of 1.5 million Power Packs per month."