NEW CASTLE, Pa., Aug. 15, 2012 /PRNewswire/ -- Axion Power International, Inc. (OTC QB: AXPW), the developer of advanced lead�-carbon PbC® batteries and energy storage systems, today announced results for its second quarter and six months ended June 30, 2012.
Net product sales increased to $ 2.8 million in 2012 from $1.7 million in 2011. Net product sales increased in 2012 compared to 2011 primarily due to the sale of specialty lead-acid batteries to a single customer who will sell these batteries under their brand, as well as carry the cost of inventory and provide the raw materials for production of these batteries.
Net loss for 2012 was $ 1.9 million or $0.02 per basic and diluted share compared to $1.3 million or $0.02 per basic and diluted share in 2011.
For the first six months of 2012 compared to the same period in 2011, excluding the cash inflow of approximately $8.6 million in net proceeds from our sale of common stock in the first quarter of 2012, our net cash flow for 2012 was negative $ 4.3 million compared to a negative $6.2 million in 2011, a reduction in cash burn of $1.8 million or 30 %. The latter significant reduction in net cash burn is in alignment with our plans for 2012 to improve our liquidity while continuing to focus on those activities critical to initial commercialization of our PbC technology.
Some highlights of the second quarter of 2012 include:
Subsequent to the end of our second quarter on June 30, the following events occurred:
Chairman & CEO Thomas Granville commented, "While we continue to work very closely with historical strategic partners such as Norfolk Southern and the automotive vehicle manufacturers, we are also working with new strategic partners for automotive applications and new strategic partners for our cube applications such as Viridity and Rosewater Energy. The residential energy HUB will be marketed by Rosewater and we are very excited to be providing a mini cube product for the high end custom home market. Clean conditioned power is an important element for the highly sophisticated home entertainment and security systems that have become an important component of the high end home market. The Residential HUB system is about the size of a side-by-side refrigerator, and will offer a range of options to a homeowner that just isn't available elsewhere."
Granville continued, "Put simply, the Residential HUB will condition power to provide a perfect sine wave pattern that is ideal for high end entertainment options such as sophisticated sound systems and ultra-large screen televisions. The 'HUB' can also accept and clean power from a wide variety of sources: solar panels, wind generation, the grid, and even diesel generators � and convert it to the perfectly conditioned AC power that best suits today's sophisticated home control systems."
Granville concluded, "We believe we have a winner and we are looking forward to the Indianapolis CEDIA EXPO 2012, and the first opportunity for people to see this product up-close and personal."
Conference Call / Webcast
Tomorrow, August 16 at 11:00 am ET (8 am Pacific) a conference call will be held to review the AXPW second quarter 2012 results. Interested parties should call 877-317-6789 (domestic) or 412-317-6789 (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. Access to the webcast will be available for 90 days.
For those who are unavailable to listen to the live broadcast, a replay will be available for one week and can be accessed by dialing 877-344-7529 (domestic) and 412-317-0088 (international) and using conference number 10016934.
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 utilizing Axion's proprietary carbon electrodes. 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
Charles Trego, CFO
�FINANCIAL TABLES FOLLOW�
AXION POWER INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(A Development Stage Company)
June 30, 2012
December 31, 2011
Cash and cash equivalents
Total current assets
Property & equipment, net
Other receivables � long term
LIABILITIES AND STOCKHOLDERS' EQUITY
Other current liabilities
Total current liabilities
Convertible preferred stock-12,500,000 shares authorized
Common stock-200,000,000 shares authorized $0.0001 par value
113,233,762 shares issued & outstanding (85,503,302 in 2011)
Additional paid in capital
Deficit accumulated during development stage
Cumulative foreign currency translation adjustment
Total stockholders' equity
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY