Valence Technology Reports 2006 4Q and Year-End Financial Results

Valence Technology, Inc. reported financial results for its fiscal fourth quarter and year ended March 31, 2006.

Revenues for fiscal year 2006 were $17.2 million, up 61.4% from $10.7 million in fiscal year 2005. The company reported a net loss for fiscal year 2006 of $32.9 million, or $0.37 per basic and diluted share, compared to $32.2 million or $0.40 per basic and diluted share for fiscal year 2005. Operating expenses were $19.4 million, down 12.1% from $22.1 million for fiscal year 2005. Gross margin loss as a percentage of revenue was 47.9% for fiscal 2006 and 53.2% for fiscal 2005. Excluding $3.8 million cost for production scrap, gross margin would have been negative 25.8% for fiscal year 2006.

For the fourth quarter of fiscal 2006, the company reported revenue of $3.5 million, up 46.7% from $2.4 million for the fourth quarter of fiscal 2005. The company reported a net loss of $9.6 million, or $0.11 per basic and diluted share, compared to $9.2 million, or $0.11 per basic and diluted share, for the fourth quarter of fiscal 2005.

Jim Akridge, President and Chief Executive Officer, stated, "Valence is executing on a strategy to grow revenues in multiple markets with new products while also reducing costs in all areas. We are entering fiscal year 2007 with a strong management team, a focus on our four strategic priorities, and an increase in market momentum."