News

Raser Reports Revenue Growth for 2005

April 16, 2006 by Jeff Shepard

Raser Technologies, Inc. reported revenue growth from $30,000 for the year ended 2004 to approximately $0.3 million for the year ended 2005. The increase in revenue is directly reflective of two government grants for development of Raser Symetron™-enhanced solutions. Raser recorded a net loss applicable to common shareholders of approximately $14.6 million or $0.29 per fully diluted share in 2005 compared with a net loss applicable to common shareholders of approximately $11.3 million, or $0.24 per fully diluted share, in 2004.

The 2005 loss represents increased investments in research and development, and higher administrative costs including fees paid to investment bankers. As of December 31, 2005, Raser had approximately $18.4 million in cash, restricted cash and short-term investments, and no long-term debt.

"Fiscal 2005 was an important year for Raser as we continued to gain traction in a number of industry segments with Raser Symetron," said Chief Executive Officer Brent M. Cook. "We have made meaningful forward strides during 2005 and into 2006 to capture the value of the Symetron portfolio of technologies and bring it to our target markets of transportation, industrial and power generation applications. We anticipate completing the testing phase with two customers during the first half of 2006 and then progressing toward the licensing phase. Our management team believes that by continuing these efforts, we will address specific market needs and deliver value to Raser shareholders."

During 2005, Raser completed the first phase of a grant from the U.S. Army to design an Integrated Starter Alternator (ISA) in sizes appropriate for military vehicles. Raser anticipates additional funding decisions to be made during the first half of 2006. The Army development program was one of two ISA projects Raser is undertaking for customers in the transportation market.

Raser is also engaged in test evaluations of the Symetron technology for industrial applications. Raser management believes that the completion of the Amp Resources acquisition will accelerate the power generation market's adoption of Raser's technology by bundling Amp's heat transfer technology with Symetron to form an effective combination for geothermal and waste heat applications.

In addition to these ISA opportunities, Raser is actively promoting the development of Symetron technology in hybrid-electric vehicles. During 2005, Raser co-founded the Plug-In Hybrid Development Consortium, (the "Consortium") focusing on Plug-in Hybrid Electric Vehicles (PHEV). The Consortium is intended to close the gap between automotive vehicle designers and automotive technology suppliers to accelerate development and introduction of a commercially viable PHEV.