VALENCE TECHNOLOGY REPORTS 2ND QUARTER RESULTS
VALENCE TECHNOLOGY REPORTS 2ND QUARTER RESULTS SAN JOSE, Calif., Nov. 2 /PRNewswire/ -- Valence Technology, Inc.
(NASDAQ-NMS: VLNC), a research and development company in advanced rechargeable battery technologies, today announced the results of its second quarter ended Sept. 27, 1992.
The company reported a net loss of $1,309,826, or 10 cents per share, for the second quarter of fiscal 1993, compared with a loss of $1,061,013, or 13 cents per share, for the same period a year ago. Revenues in the second quarter of 1993 amounted to $1,500,000; the company had no revenues in the second quarter of fiscal 1992. Revenues in each quarter reflect preset amounts paid for achieving development milestones in the company's strategic partnering agreement with Delco Remy, a division of General Motors Corp. For the first six months of fiscal 1993, the company reported a net loss of $1,950,000, or 16 cents per share. This compares with net income of $496,468, or 5 cents per share, for the same period in fiscal 1992. Revenues in the first half of fiscal 1993 were $3,000,000 versus $2,500,000 for the comparable period in 1992. Management Comments According to Christine Russell, vice president and chief financial officer, "The positive year-to-date earnings reported for Valence at Sept. 30, 1991 were an issue of timing rather than operations. A large portion of the revenues received from Delco fell to our bottom line because significant R&D expenses had not yet been incurred." The company's research and development expenses increased to $3,300,000 in the first half of fiscal 1993, up from $866,000 during the same period in fiscal 1992. The increase was primarily the result of direct costs associated with battery development and prototype production. Financing Activities On Oct. 5, 1992, the company filed with the Securities and Exchange Commission (SEC) a registration statement for 4,000,000 shares of common stock. Montgomery Securities will manage the offering. The company is offering 3,230,000 shares and certain selling stockholders are offering 770,000 shares. The company and the selling stockholders are also offering 150,000 and 450,000 shares, respectively, for the underwriters' overallotment. A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the Securities Act of any such state. A copy of the preliminary prospectus may be obtained from Richard A. Smith,
Syndicate Manager, Montgomery Securities, 600 Montgomery Street, San Francisco, CA 94111, (415) 627-2100.
Profile Valence Technology, Inc. is engaged in research and development to produce advanced rechargeable batteries based on lithium and polymer technologies. The company believes that its lithium polymer batteries, when commercially introduced, will offer superior performance characteristics -- such as longer operating life, reduced size and weight, and significantly improved recharge characteristics -- to those batteries currently in commercial use. Valence Technology believes that its lithium polymer batteries offer the greatest applications in a number of electronic consumer products, such as portable computers, cellular telephones, camcorders and hand-held tools, as well as automotive applications, including electric vehicles. Valence is traded on the NASDAQ National Market System under the symbol VLNC. NOTE: To receive the latest information about Valence via FAX, at no cost, dial 1-800-PRO-INFO, code 137. -0- 11/2/92 /CONTACT: Lev Dawson, Chairman, Chief Executive Officer of Valence Technology, 408-365-6125; or Gary Strong or Nick Farina of the Financial Relations Board, 312-266-7800, for Valence Technology/ (VLNC) CO: Valence Technology ST: California IN: SU: ERN
SB -- NY067 -- 1674 11/02/92 14:19 EST
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|Date:||Nov 2, 1992|
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