Valence Technology Reports Third Quarter Financial Results 2007
Valence Technology Inc. reported results for the three-month period ending December 31, 2006. The company reported revenues of $2.3 million, compared to $6.4 million in the previous quarter and $4.8 million for the third fiscal quarter of 2006. The substantial decrease in revenue is due to a rescheduled shipment of Segway battery packs and a temporary shortage of key components. The company expects to recognize revenue from this particular order by the end of fiscal 2007.
Net loss for the third quarter of fiscal 2007 was $6.0 million or ($0.06) per share, compared to a net loss of $4.8 million or ($0.05) per share for the previous quarter, and a net loss of $7.1 million or ($0.08) per share for the third fiscal quarter of 2006. Large-format battery systems sales represented 62% of the sales mix, compared to 59.0% in the same quarter of fiscal year 2006.
"While quarterly results are disappointing, I am pleased with the substantial progress the company has made to decrease overhead, lower material costs, improve yields, and reduce scrap as a result of powder manufacturing process improvements," said Dr. James R. Akridge, President and CEO of Valence Technology. "We persistently identify and implement strategic measures to ensure better results; these efforts will ultimately drive growth in revenue."
The revenue forecast for the fourth quarter of fiscal 2007 will be in the range of $4.0 to $6.0 million. Some of the expected increase in revenue is a result of Segway orders that were scheduled to ship in the third quarter, but were postponed to the fourth quarter.
