NEW CASTLE, Pa., May 17 /PRNewswire-FirstCall/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced PbC® batteries, today announced financial results for its quarter ended March 31, 2010.
Net sales for the 2010 first quarter were $0.5 million with a net loss of $1.4 million or $0.02 per share, compared to net sales of $0.3 million with a net loss of $ 1.1 million or $0.04 per share during the first quarter of 2009. Of the improvement in net sales for the first quarter of 2010 as compared to the same period in 2009, service sales to a strategic partner accounted for 75% of the increase while product sales of our traditional lead acid batteries to existing customers accounted for the remaining 25% increase.
Loss before income taxes, excluding non-cash items, was $1.7 million in the first quarter of 2010, with no change as compared to the same period in 2009. The increase in gross profit was offset by higher non-cash operating expenses for the first quarter of 2010 compared to the same period in 2009.
At March 31, 2010 cash, net of debt, was $20.5 million. Total assets were $27.4 million and total stockholders' equity was $23.2 million.
"Our core technology and our PbC batteries continue to demonstrate their capabilities in a variety of important applications," said Axion Power CEO Thomas Granville. "Our strategic partners include Exide Technologies, one of the largest battery suppliers in the world with a significant presence in transportation globally. But whether it's the micro or mild hybrid vehicle market, mass transportation, off-grid storage of renewable energy, grid balancing or buffering, remote power sourcing or military applications, we believe our PbC technology will prove to be a low-cost, fully recyclable energy storage technology. Currently, we are exploring the development of solar power storage systems, solar powered electrical charging stations and new products for 'Smart Grid' systems, with potentially large, global markets and with important strategic partners.
"We made excellent progress in 2009 and in 2010 we are continuing to work with some very large potential customers in testing and pilot programs, and our goal is to be able to launch some noteworthy contracts this year, as well as to advance the phased testing of our PbC technology with Exide and others. In the first quarter, we began a process to strengthen our team that is ongoing. Our $26 million private placement at the end of 2009 has allowed us to improve our management team, increase our overall talent pool and reward existing team members, as well as make strides with our products and processes. So far we are very pleased with the results," Granville concluded.
Company accomplishments in the first quarter of 2010 include:
Subsequent to the end of the 1st quarter:
Conference Call / Webcast
Today at 11:00 am ET (8 a.m. Pacific) a conference call will be held to review the AXPW results. Interested parties should call 877-485-3104 (domestic) or 201-689-8579 (international), to access the call. You may also access this call via the Internet by visiting the company's website at www.axionpower.com and clicking on the Investors link.
For those who are unavailable to listen to the live broadcast, a replay will be available for 7 days and can be accessed by dialing 877-660-6853 (domestic) and 201-612-7415 (international) and using passcode 350405 and account number #356.
About Axion Power International Inc
Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.
For more information, visit www.axionpower.com
Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.
Axion Power International, Inc.
Thomas Granville, CEO
(724) 654 9300
Allen & Caron Inc
Rudy Barrio (Investors)
Len Hall (Media)
�FINANCIAL TABLES FOLLOW�
AXION POWER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(A Development Stage Company)
Three Months Ended
Cost of sales
Research & development
Selling, general & administrative
Interest expense - related party
Impairment of assets
Derivative revaluation (income)
Mega C Trust share augmentation
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Loss before income taxes
Less preferred stock dividends and beneficial conversion feature
Net loss applicable to common shareholders
Basic and diluted net loss per share
Weighted average common shares outstanding
AXION POWER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(A Development Stage Company)
March 31, 2010
December 31, 2009
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Property & equipment, net
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