Valence Technology Reports Fiscal 2008 Fourth Quarter & Year-End Financial Results
Valence Technology, Inc. reported financial results for its fiscal 2008 fourth quarter and year ended March 31, 2008. For the fourth quarter of fiscal 2008, the company reported total revenue of $7.8 million compared to $4.8 million for the same period last year.
According to the company, the increased revenues were mainly due to new orders shipped to The Tanfield Group PLC’s Smith Electric Vehicle division during the quarter. Gross margin of $0.7 million was said to have improved mainly due to increased sales volume and manufacturing efficiencies realized. Overall operating expenses were relatively flat for the quarter. The company reported a net loss available to common shareholders of $4.6 million or $0.04 per share, compared to a net loss of $6.0 million or $0.05 per share, for the fiscal 2007 fourth quarter.
For the fiscal year ended March 31, 2008, revenue was $20.8 million compared to $16.7 million for the same period last year. The company states that the growth in revenue was due primarily to increased orders from Segway, Inc. and new orders from Tanfield. As a result of increased revenues, manufacturing efficiencies and a favorable inventory reserve adjustment, gross margin improved to 8.8% for the year. Operating expenses declined by approximately $0.4 million due to what is described as continued cost control efforts during the year. Net loss available to common shareholders improved to $19.6 million or $0.18 per share, compared to $22.4 million or $0.22 per share for the fiscal year ended March 31, 2007.
"The company finished fiscal 2008 with improved financial performance," said Robert L. Kanode, President and Chief Executive Officer of Valence. "We expect to see continued revenue growth in fiscal year 2009 as our customer base and manufacturing capacity expand. Efforts to reduce global dependence on fossil fuels and carbon emissions are at the forefront of our daily news and Valence provides an alternative energy solution. Our lithium phosphate energy systems offer safety, reliability, no heavy metals, and cost effective pricing to enable long life applications."
