Amerigon Reports First Quarter Results.IRWINDALE, Calif.--(AutomotiveWire)--May 5, 1998--Amerigon Inc. (Nasdaq: ARGNA) Tuesday Tuesday: see week. announced results for its first quarter ended March 31, 1998. For the first quarter, the net loss was $1.86 million, or a loss per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of 19 cents, compared with a net loss of $1.94 million, or a loss per diluted share of 25 cents in the prior year's first quarter. Revenue for this year's first quarter declined to $84,000, when compared with last year's first quarter revenue of $384,000, principally due to the completion of several development and prototype contracts last year. As previously disclosed, the company no longer intends to pursue such development contracts and is currently focusing on further developing and commercializing its Climate Control Seat (CCS (1) (Common Channel Signaling) A communications system in which one channel is used for signaling and different channels are used for voice/data transmission. Signaling System 7 (SS7) is a CCS system, also known as CCS7. See SS7. ) and Amerigon Radar Technology (ART). CCS is an active temperature control system that both heats and cools motor vehicle seats and ART is an advanced radar-based sensing system that gives a vehicle driver an extended field of view during maneuvering situations. Amerigon President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Rick Weisbart commented: "We took a number of important steps towards the eventual commercialization of our CCS product technology during this year's first quarter. "In January January: see month. , we manufactured the first CCS systems for Mark III Mark III can refer to:
"From January 31 through February 4, Mark III demonstrated CCS at the National Automobile Dealers Association (NADA) convention in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded where it received excellent reviews and was selected as one of the `10 Cool Things at NADA' by Automotive News, a leading automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. trade publication." Amerigon will begin to recognize revenue from shipments to Mark III in this year's second quarter. "While we expect the revenue from Mark III to be modest, growing slowly throughout the next several quarters," Weisbart added, "the relationship with Mark III is strategically very important to us. It represents the achievement of an important early milestone in our program to establish a number of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and relationships in the automotive industry. "In addition, it will give consumers an opportunity to experience the added comfort of motor vehicles equipped with the CCS system and, over time, we believe it should help create demand for the product on a broader scale." During the first quarter, the company also increased the number of manufacturers that have been shipped prototype CCS systems to over 39, which includes most major automotive companies. "We are also encouraged with the progress being made with ART," Weisbart said. "Earlier this month we began a joint research project with the New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). State Highway and Transportation Department and Research Bureau to test ART for New Mexico's Highway Maintenance and Construction Departments. Four vehicles are now equipped with ART and are currently being field-tested in New Mexico. "This relationship provides us with the opportunity to demonstrate the effectiveness of ART in reducing backup accidents." Research and development expenses increased substantially during this year's first quarter, when compared with the first quarter of 1997, due to greater investment by the company in R&D activities related to the CCS and ART products. When compared with last year's first quarter, Selling, General and Administrative expenses also increased during the first quarter of 1998. This was due primarily to fewer SG&A expenses being allocated to development contracts and more costs being incurred for the expanded marketing and sales activities associated with CCS. The company's balance sheet at March 31, 1998 shows a current ratio of 7.9:1; total assets of $8.6 million; working capital of $6.7 million; cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $6.2 million; and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $7.6 million. Founded in 1991, Amerigon is a development stage company for high technology products in the commercial automotive market. The company is based in Irwindale. -0- Certain matters discussed in this release, including the company continuing to allocate To reserve a resource such as memory or disk. See memory allocation. funds toward development and sales and marketing, consumer demand for its products, expected revenue and revenue growth, expense levels and expected losses for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, and actual results may be different. Such risks and uncertainties include the acceptance and performance of the company's products, the company's ability to develop new products successfully and the ability to obtain new sources of financing. Also refer to the company's Securities and Exchange Commission reports, including but not limited to the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 1997 and the Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1998. -0-
Amerigon Inc.
Statements of Operations
(in thousands, except per share data)
(Unaudited)
From
April 23, 1991
Three Months Ended (inception)
March 31, to March 31,
1997 1998 1998
Revenues:
Development contracts and
related grants $ 384 $ 84 $ 17,294
Grants 12 -- 6,183
Total Revenue $ 396 $ 84 $ 23,477
Costs and Expenses:
Direct development contract
and related grant costs 869 -- 20,904
Direct grant costs 28 -- 4,757
Research and development 256 1,024 11,883
Selling, general and
administrative, including
reimbursable expenses 794 1,013 19,271
Total Costs and Expenses 1,947 2,037 56,815
Operating Loss (1,551) (1,953) (33,338)
Interest income 67 96 1,139
Interest expense (117) -- (282)
Gain on disposal of assets -- -- 2,363
Net loss before
extraordinary item $(1,601) $ (1,857) $(30,118)
Extraordinary loss from
extinguishment
of indebtedness (340) -- (340)
Net loss $(1,941) $ (1,857) $(30,458)
Basic and diluted net loss
per share before
extraordinary item $ (0.25) $ (0.19)
Basic and diluted net
loss per share $ (0.30) $ (0.19)
Weighted average number
of shares outstanding 6,488 9,550
CONTACT: Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. & Caron Inc. Damon Wright (investors) Owen Daley (media) 714/252-8440 |
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