Valence Technology Reports Third Quarter & Nine Month Fiscal 2008 Financial Results

Valence Technology, Inc. reported financial results for its fiscal third quarter and nine months ended December 31, 2007.

For the third quarter of fiscal 2008, the company reported total revenue of $3.4 million compared with $2.3 million for the same period last year. While revenues increased by $1.1 million due to additional sales of large format batteries, the overall increase was less than expected in order to implement a component change. Gross margin was negative but improved in the current quarter mainly due to increased sales revenue. The company reported a net loss available to common shareholders of $5.7 million, or $0.05 per share, compared to a net loss of $6.0 million, or $0.06 per share, for the third quarter last year.

For the nine month period ended December 31, 2007, revenue was $13.0 million compared with $11.9 million for the same period last year. Gross margin improved to 9% due to increased revenue and reductions made to the inventory reserve. Operating expenses declined by approximately $0.5 million or about 4% as part of the company’s continued efforts to control costs. Net loss available to common shareholders improved to $15.0 million, or $0.13 per share compared with $16.4 million, or $0.17 per share for the nine month period ended December 31, 2006.

"Our year-to-date performance has improved compared to the same period last year," said Robert L. Kanode, President and Chief Executive Officer. "And, given our outlook for the current fiscal quarter, we expect to have year-over-year revenue growth. Over 100 corporations and government entities are evaluating our lithium phosphate technology for use in a wide variety of applications. We expect our recently announced Epoch battery system to enable a new generation of demanding applications such as electric vehicles, plug-in hybrids, back-up power, and other applications that require safety, long life, and reliability."