ZBB Energy Reports Q3 Commercial Revenue More Than Doubled From the Prior Year
ZBB Energy Corporation announced its financial results for its fiscal third quarter ended March 31, 2013. Financial results for the fiscal third quarter ended March 31, 2013 as compared to the third quarter ended March 31, 2012 included: Commercial product sales increased 117% to $2,019,191 from $929,925. Product sales gross profit of $257,429 compared to $177,595. Gross margin on product sales of 13%, compared to 19% (gross margin on product sales was 7% and 18%, respectively in the first and second quarters of fiscal 2013). Total revenues, including engineering and development revenue, increased 29% from $1,645,291 to $2,119,191. Net loss decreased to $2,824,313 compared to $3,472,885. The decrease in net loss is due primarily to the increase in revenue, gross profit and cost cutting measures instituted by the company. Loss per share declined to ($0.04) from ($0.09).
"We continued to meet our plan objectives of year-over-year increases in revenues," said Eric C. Apfelbach, President and CEO. "Our shipments continue to expand our application and global market experience in key growth segments. This knowledge base is a powerful tool as we seek to expand our lead in the flow battery market. We believe that the timing of both bookings and revenue recognition will continue to be lumpy over the next few quarters as these new applications and markets continue to mature. Our progress in penetrating key segments and global markets positions us well to secure the near term investment capital or other funding we require from strategic partners or other investors."
Highlights for the nine month period ending March 31, 2013 included: Revenues increased 80% to $6,690,519 from $3,724,069. Total costs and expenses increased 30% to $15,208,760 from $11,736,075. Net loss increased 12% to $8,790,559 from $7,878,643. Loss per share declined to ($0.11) from ($0.23).
As of May 13, 2013, the Company's backlog was $5.0 million compared to backlog of $6.1 million on February 13, 2013. ZBB ended the third quarter of fiscal year 2013 with total assets of $16.0 million, including $2.6 million in cash and $1.1 million in accounts receivable. Anticipated collections in the fiscal fourth quarter associated with current backlog and current accounts receivable are anticipated to be approximately $2.5 million. The current rate of cash consumed by operating expenses and inventory purchases to support the current backlog is approximately $1.4 million per month.
The Company is aggressively pursuing additional sales orders and other sources of funding, including expansion of contract engineering and development programs through strategic partners. In addition, the Company is holding a special shareholder meeting on June 28, 2013 to seek shareholder approval to remove the NYSE MKT limitations on the use of the Aspire $10 million funding instrument. The Company views this facility as critically important to provide necessary liquidity while it seeks strategic financing. A preliminary proxy statement is being filed today with the SEC. The Company has sufficient capital to fund operations through the fourth quarter of fiscal 2013.
During the third quarter, total revenues increased to $2,119,191 from $1,645,291 in the prior year. Third quarter product sales increased to $2,019,191 from $929,925 in the prior year, due to successful commercialization and continued sales growth of the Company's ZBB EnerSystemâ„¢ platform and power electronics, including hybrid vehicle control systems. There were $100,000 in engineering and development revenues, as compared to $715,366 in the prior year.
Total expenses from operations for the third quarter were $4,895,303 compared with $5,195,479 in the prior year. The decrease in expenses was primarily related to an increase in the cost of product sales offset by decreases in other expenses as follows: $1,009,432 increase in costs of product sales was due to the increase in commercial product sales; $455,296 decrease in the cost of engineering and development sales was due to decreased activities related to engineering and development agreements; and $780,504 decrease in advanced engineering and development expenses due to a shift from engineering contracts to product development, product efficiency improvement and cost reduction activities for the Company's ZBB EnerStoreâ„¢ and ZBB EnerSectionâ„¢ products. Advanced engineering and development materials expense decreased by $1.1 million from last year.
