ZBB Energy Corp. reported revenues of $1,645,291 and $3,724,069 for the three and nine months ended March 31, 2012, respectively, representing increases of $1,439,320 and $3,283,417, or 699% and 745%, compared to the corresponding fiscal 2011 periods. Net loss on the basis of accounting principles generally accepted in the United States (GAAP) was $3.47 million or $0.09 per share and $7.88 million or $0.23 per share in the three and nine months ended March 31, 2012, respectively, compared to $2.9 million and $6.7 million, or $0.12 and $0.33 per share in the three and nine months ended March 31, 2011, respectively.
Revenues of $1,645,291 for the three months ended March 31, 2012 included product revenue of $929,925 shipped during the quarter and $715,366 of engineering and development revenues related to the Honam collaboration and the major U.S. technology research partnership.
Revenues of $3,724,069 for the nine months ended March 31, 2012 included $2.1 million of revenue from our collaboration agreement with Honam Petrochemical, $200,000 of revenue from our U.S. strategic development partner and product revenues of $1,396,953. We started shipping ZBB EnerSystems™ in February 2012, we acquired Tier Electronics in January 2011 and we commenced our collaboration agreement with Honam in April 2011.
The company’s cash balance at the end of the quarter was $906,765. The company’s current cash balance as of the date of this earnings release is $2 million. Current backlog exceeds $6.2 million, including product backlog of $5.6 million and engineering contract backlog of $600,000. After booking record shipments in Q3, product backlog has increased by $200,000 since the company’s last earnings call.
The company closed a $2.4 million convertible debt financing on May 2, 2012. This financing provides the company with necessary working capital to fund increasing production through FY 2012. During the fourth quarter of FY 2012, the company expects to raise an incremental $10 million in a public stock offering. In connection with this financing, on May 7, 2012 we sent a notice to Socius CG II, Ltd. terminating our financing agreement.
"Our record revenue in the third fiscal quarter was driven by the inaugural shipments of our new flagship products," said Eric Apfelbach, ZBB Energy’s President and CEO. "The unique capabilities of our products continue to receive market validation, as demonstrated by our recent contract win to supply intelligent power management and storage for the SPIDERS microgrid program, a major U.S. Department of Defense energy security initiative that involves multiple government agencies, state governments and public utilities.
"It is clear from what we see in our target markets and the industry forecasts that we are at the beginning of a huge growth phase in the global energy storage market. ZBB has positioned itself in the top growth markets in the world with the most compelling products. We have also structured our supply chain and production facilities to support a continued ramp up in sales and meet our targets for increasing gross margins and achieving EBITDA breakeven."
"As we look ahead to the end of this current quarter and into fiscal 2013," Apfelbach continued, "we expect revenue to continue to increase quarterly, fueled by increased design wins in our target segments that have repeat order potential. In addition, we expect to gain even more leverage in our sales channel through our current and future industry and JV partners. As of the close of the third fiscal quarter, our sales pipeline was estimated at over $30 million."
