Energy Research Corp. Reports Third Quarter Results.DANBURY, Conn.--(BUSINESS WIRE)--Aug. 21, 1997--Energy Research Corporation (AMEX AMEX See: American Stock Exchange :ERC (database) ERC - An extended entity-relationship model. ) today reported that revenue for the third quarter ended July 31, 1997, was $6.4 million, compared with $7.4 million in the same period a year ago. Net income was $195,000, or $0.05 per share, compared to $122,000, or $0.03 per share. The increase in earnings was due primarily to an increase in license income. The decrease in revenues for the third quarter was planned and was due primarily to the completion of the two-megawatt Direct Fuel Cell Power Plant project in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. . For the nine months ended July 31, net revenues were $18.2 million compared with $22.2 million for the same period a year ago. Net income was $346,000, or $0.08 per share, compared with $307,000, or $0.08 per share. The decrease in revenue for the nine month period was also primarily due to decreased billings associated with the California power plant project. Mr. Jerry D. Leitman, president and chief executive officer of ERC commented, "this is the 21st consecutive quarter of profitability since becoming a public company while maintaining multimillion dollar research, development and demonstration programs and constructing of an advanced fuel cell manufacturing facility". The Company is presently engaged in developing its commercial direct fuel cell module which consists of four 300 kW fuel cell stacks (1.2 MW). A 400 kW balance of plant test facility, the world's largest has been constructed at ERC and is currently being tested by the Company. In addition, the Company is constructing the first commercial size stack for installation in this facility. The module design is progressing and a 1.2MW simulator (1) Software that enables the execution of an application written for a different computer environment. Same as emulator. (2) Software that models the interactions of hypothetical or real-world objects or business processes. is also being designed and construction is expected to begin this year at the Company's Danbury site. The Company is currently pursuing the possibility of using the balance of plant equipment at the Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. site to build a second demonstration power plant with the new modules under development. The existing stacks from the Santa Clara Demonstration Project are being subjected to a comprehensive post test analysis which is expected to provide useful design information for the new modules. The Company recently received an additional $2 million add-on to its existing contract with DOE, raising the present contract funding level to $86 million. The funding was provided to DOE by the Defense Advance Research Project Agency, and will be used in the construction and test of the megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt sized simulator. Funding of all DOE projects is subject
to yearly congressional appropriations.In the battery area, the Company has signed a secrecy secrecy see confidentiality. and test agreement with a major German car manufacturer to provide its nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. zinc battery for testing for potential use in electric/ hybrid electric vehicles A hybrid electric vehicle (HEV) is a vehicle which combines a conventional propulsion system with an on-board rechargeable energy storage system (RESS) to achieve better fuel economy than a conventional vehicle without being hampered by range from a charging unit like an (EV/HEV) with the results to be made available to the European EUCAR EUCAR European Council for Automotive R & D EUCAR European Car Manufacturers EUCAR European Council for Automotive Research and Development Consortium. Additionally, the Company is negotiating with another German electric vehicle manufacturer relative to the use of the Company's battery. The Company expects to test its battery in an electric vehicle scheduled to be provided by that German company in the U.S. in the first quarter of 1998 and then transfer the electric vehicle to Germany for further road testing. There can be no assurance these tests will proceed successfully, if at all or in a timely fashion as they are subject to many design and integration technical issues. The Company has also begun pursuing EV/HEV battery opportunities in Asia. Energy Research Corporation, located in Danbury and Torrington, Connecticut Torrington is the largest city in Litchfield County, Connecticut and the northwestern Connecticut region. It is also the core city of the largest micropolitan area in the United States. , is an internationally recognized leader in the field of electrochemical electrochemical /elec·tro·chem·i·cal/ (-kem´i-k'l) pertaining to interaction or interconversion of chemical and electrical energies. e·lec·tro·chem·i·cal adj. technology for electric power generation. ERC is developing its Direct Fuel Cells and batteries in cooperation with government, electric utility and major international industrial organizations. -0- This release contains 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. regarding the Company's development efforts that are based on current expectations that involve a number of risks and uncertainties. These statements are made under the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The factors that could cause actual results to differ materially include the following: interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. or cancellation of existing contracts or license agreements; and uncertainties associated with government budget processes; uncertainties associated with development projects; and the risks described in 10-KSB and 10-Q filings with the Securities and Exchange Commission. -0-
RESULTS OF OPERATIONS
(In thousands, except per share data)
unaudited
THREE MONTHS ENDED JULY 31,
1997 1996
Revenues $ 6,448 $ 7,412
License fee income, net $ 207 $ 89
Net income before income
taxes $ 285 $ 193
Net income $ 195 $ 122
Earnings per share $ .05 $ .03
Weighted average common
and common equivalent
shares outstanding 4,203,193 4,146,020
-0-
NINE MONTHS ENDED JULY 31,
1997 1996
Revenues $ 18,203 $ 22,194
License fee income, net $ 441 $ 267
Net income before income
taxes $ 562 $ 483
Net Income $ 346 $ 307
Earnings Per Share $ .08 $ .08
Weighted average common
and common equivalent
shares outstanding 4,204,893 4,053,282
-0-
BALANCE SHEET
(In thousands)
ASSETS
July 31, October 31,
1997 1996
Current Assets $ 10,024 $ 12,913
Property, plant & equipment,
net 8,247 7,245
Other assets 3,097 3,382
Total assets $ 21,368 $ 23,540
-0-
LIABILITIES AND STOCKHOLDERS EQUITY
July 31, October 31,
1997 1996
Current liabilities $ 3,652 $ 4,826
Other long-term debt 2,921 4,363
Other long-term liabilities 264 289
Stockholders' equity 14,531 14,062
Total liabilities and
Stockholders' equity $ 21,368 $ 23,540
CONTACT: Energy Research Corporation, Danbury Peter Voyentzie, 203/792-1460 e-mail: moreinfo@ercc.com |
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