Valence Technology Reports Increased Revenue for Third Quarter

February 12, 2006 by Jeff Shepard

Valence Technology Inc., provider of Saphion® technology for large-format lithium-ion rechargeable batteries, has reported results for the quarter ended Dec. 31.

Highlights for the third quarter of fiscal year 2006 include:

— Quarterly revenue of $4.8 million, an 89 percent increase over the same quarter of fiscal year 2005.

— Improved gross margin as a percentage of sales by 45 percent over third quarter of fiscal 2005.

— Reduced operating expenses by 43 percent from the same quarter a year ago (excluding special expense and income adjustments).

— Large-format battery systems sales represented 59 percent of the sales mix, compared to 10 percent in the same quarter of fiscal 2005.

— The number of customers grew by 12 percent over second quarter of fiscal 2006.

ChunTai Guo has been promoted to president of Asia/Pacific Operations. Dr. Guo joined Valence two months ago as a vice president. He has expertise in fundamental lithium-ion chemistry, processes, applications and manufacturing. He also brings experience in general management, cost control systems, supply chain management, systems development and quality control. Dr. Guo most recently served as general manager and chief technology officer at TCL Hyperpower Battery Inc., the second-largest laminate lithium-ion battery company in China.