Zapworld.Com (ZAP, Sebastopol, CA) announced financial results for the three months ended September 30, 2000. Record revenues of $3,948,000 were recorded
for the third quarter of fiscal 2000 compared to $1,767,000 in the prior year, an increase of $2,181,000 or 123 percent.
For the same period, net loss shrunk to $54,000, compared with a loss of $323,000 in the third quarter of 1999. Sales for the nine months ended September 30, 2000 were $8,128,000 compared with $4,444,000 in the nine months ended September 30, 1999, an increase of $3,684,000 or 83 percent.
The increase in sales for ZAP in 2000 over the same period in 1999 was largely due to increased demand for the company's products worldwide. ZAP improved its production flow and output to meet the greater demand for its products. Introduction of the new non-motorized Kick scooter and acquisition of the electric sea scooter company generated increased revenues.
According the ZAP President John Dabels, for the quarter ended September 30, 2000, expenses related to the acquisition of Aquatic Propulsion Technologies, maker of the Sea Scooter, as well as amortization of costs from previous acquisitions of companies and technologies totaled approximately $290,000, exceeding profit from direct operations of approximately $200,000. Operating profit associated with operations resulted primarily from increased production of Zappy, the company's main product. Third quarter production for the Zappy was up 105 percent over last year.
“We are extremely pleased with the increase in production and the resulting contribution to earnings," said Dabels. “The company intends to take the same approach to increasing production of our Sea Scooters."
ZAP CEO Gary Starr commented, “The improved third quarter results show our plans to build a sustainable electric vehicle company are beginning to gain positive momentum. Revenues for the third quarter are exceeding our earlier projections, and due to our partners in Asia, our cost of materials has decreased. Also, due to our preferred stock offerings, ZAP is in a strong cash position. ZAP's production in the fourth quarter is anticipated to increase as we enter the busy holiday season."
