Odyne Corp. Provides Business Update and Reports Financial Results for Second Quarter 2007.
Published in: Business Wire
Date: 8/14/2007
Odyne Corporation (OTCBB: ODYC), a leading developer of advanced plug-in hybrid electric vehicle (PHEV) technology for trucks and buses, today provided an update on its business and reported financial results for its second quarter ending June 30, 2007.
Total revenue for the three months ended June 30, 2007 was $299,274, compared to $115,564 for the same period in 2006, representing an increase of 159%. The second quarter revenue represented a sequential increase of over 1,200%. Total revenue for the first half of 2007 was $322,056, compared to $169,224 for the same period in 2006, representing an increase of 90%.
Roger M. Slotkin, Chairman and CEO, commented, “We moved aggressively on several fronts to further strengthen our lead in the PHEV for Class 6, 7 and 8 buses and trucks. Additionally, we have opened up an international sales channel in the hybrid automotive area with our recent strategic supplier agreement to provide battery management system technology for Mexico City’s 2,000 car municipal fleet. This agreement, which is subject to finalizing specifications and pricing, is with Electro Autos Eficaces de Mexico, S.A., a government-supported consortium overseeing the conversion of the first 500 of the 2,000 Nissan Tsurus to electric drive within two years. The agreement could potentially be extended to include the entire car fleet. It is estimated that the total value of the agreement to Odyne for the first 500 vehicles could be between $1.2 and $1.7 million, depending upon the options ordered. In addition, Odyne has been asked to bid on hybridization programs for Mexico City’s bus fleets.”
This past quarter, Odyne delivered two of three systems ordered by Syosset Truck, which is installing them into recycling vehicles for the Town of Oyster Bay, New York. The shipments to Syosset Truck are consistent with Odyne’s intent to become a supplier of systems to vehicle upfitters and OEM’s. Additionally, three vehicles are in various stages of customer acceptance testing including a cutaway style, 24-passenger bus for New York’s Town of North Hempstead, a transit style bus for LIPA, and the world’s cleanest garbage truck, a compressed natural gas (CNG) hybrid for the City of Fresno, California.
DUECO, an aerial lift truck manufacturer, this quarter issued a purchase order for the development and installation of a proprietary PHEV propulsion system optimized for aerial applications into a DUECO aerial truck.
The truck will be exhibited in October at the ICUEE Exposition, one of the largest industry tradeshows which attracts approximately 17,000 industry professionals who can test equipment at the Show. In addition, Odyne has a very active fall tradeshow schedule that will get its products and the Company in front of hundreds of potential customers. These include the Keyspan-LIPA Energy Conference (Aug. 14-15); the Hybrid Truck Users Forum in Seattle (Sept. 19-21); the Alternative Energy Conference in New York; and BusCon, the major bus industry conference (Oct. 1-3).
This quarter, Odyne also received widespread industry recognition as the awareness of its technology and competitive advantage becomes better known. According to Bill Moore, editor of EV World, one of the most respected industry journals, “Odyne…has quickly created a name for itself in the heavy Class 6, 7 and 8 plug-in hybrid vehicle market. In fact, they pretty much own the niche at the moment….” In a major feature in Long Island’s Newsday, an executive from Pacific Gas & Electric noted, “The advantage I think Odyne brings to the market is a plug-in hybrid powertrain that is scalable.”
Lastly, alternative energy advocate, Congressman Steve Israel (D-NY) announced House passage of additional Clean Cities funding at a recent event. The Greater Long Island Clean Cities Coalition (GLICCC) approved funding projects at both Long Beach and West Hempstead, Long Island to install PHEV drive systems into some of their garbage trucks. Once contracts are in place between the towns and GLICCC, Odyne expects to receive orders for the PHEV systems.
Other financial results include an operating loss for the three months that ended June 30, 2007 of $1,081,780, compared to an operating loss of $281,767 for the same period last year. Operating loss for the six months ended June 30, 2007 was $2,125,084, compared to an operating loss of $497,864 for the same period last year. The increased operating loss was due to reduced gross profit related to sales mix, increased R&D spending and increased G&A costs. Net loss attributable to common stockholders for the three months ended June 30, 2007 was $1,066,093, or $.05 per share, compared to a net loss of $291,907, or $.02 per share, for the same period in 2006. Net loss attributable to common stockholders for the six months ended June 30, 2007 was $2,082,503, or $.11 per share, compared to a net loss of $516,656, or $.04 per share, for the same period in 2006. Results for the first half of 2006 reflect Odyne’s operation as a private company.
The financial results described above are included in our quarterly report on Form 10-QSB filed today. Readers should refer to the Form 10-QSB for a discussion of the Company’s liquidity issues and its need for additional financing to conduct its operations.
About Odyne Corporation
Odyne Corporation is a clean technology company that develops and manufactures propulsion systems for advanced Plug-in Hybrid Electric Vehicles (PHEV), specifically medium and heavy-duty trucks and buses. The company has developed a proprietary system combining electric power conversion, power control and energy storage technology, with standard electric motors, storage batteries and other off the shelf components to create a lower fuel cost, lower operation and maintenance cost, substantially lower emission and quieter vehicle. Odyne’s PHEV systems are series configuration hybrids with significant advantages over the parallel architecture used in hybrid passenger cars. Odyne’s stock is quoted on the OTC Bulletin Board under the symbol ODYC. Visit www.odyne.com for more information.
Forward-Looking Statements
This news release contains certain “forward-looking statements,” related to the business of Odyne which can be identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, regulatory actions or delays, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the U.S. Securities and Exchange Commission. Odyne is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.