Evercel, Inc., Reports 2000 Fourth Quarter and Year End Results
DANBURY, Conn., Jan. 29 /PRNewswire/ -- Evercel, Inc. (Nasdaq: EVRC), a developer and manufacturer of advanced rechargeable batteries, reported revenue for 2000 of $200,000 and a net loss to common shareholders of $12.0 million or $1.80 loss per basic and diluted share. Revenues for 2000 decreased $9,000 as compared to 1999. Net loss to common shareholders increased $6.1 million compared to 1999, an increase of $.59 per basic and diluted loss per share.
For the quarter ended December 31, 2000, the net loss to common shareholders was $4.1 million ($.56 per basic and diluted share) compared to a loss of $2.4 million ($.41 per basic and diluted share) for the fourth quarter of 1999.
Revenues for 2000 represent mostly sales of product samples. Operating costs and expenses increased $6.2 million over 1999 as a result of increased personnel costs and other expenses related to the commercialization of Evercel's nickel-zinc battery, additional costs of being a publicly traded company and new manufacturing facility expenses. Increased interest income of $490,000 is due to interest income on short-term investments, primarily on net proceeds of $15.9 million from a public offering in May 2000. Increased license fee income of $572,000 resulted from a license fee on the Nan Ya License Agreement paid in 2000.
"The past year was a year of substantial investment in and accomplishment toward reaching our goal of providing a totally new type of rechargeable battery technology to consumers in the U.S. and abroad," said Robert L. Kanode, president and CEO of Evercel. "Our results reflect our aggressive drive to begin manufacturing and selling our products in quantity. Looking forward, we are confident that these efforts will yield the desired results as we build on our strong manufacturing foundation."
During 2000, the company achieved several milestones that position it for growth in 2001.
-- New product launch
In July, Evercel announced the launch of its Evertroll trolling motor battery and charger system for use in the marine industry. Response to the Evertroll's long life and advanced features was positive, as measured by advanced orders placed through http://www.evertroll.com and through a toll- free order number. The battery is also being made available through top catalogs including Cabela's and BassPro. Several fishing professionals have successfully run the Evertroll during practice and competition in 2000, producing championship results.
Also in July, the company announced that it was moving into a new facility in Newport News, Virginia. Since that time, a new production line has been completed and is now manufacturing and shipping the company's Evertroll trolling motor batteries.
-- European and Asian scooter initiatives
Electric scooters and bicycles represent important entry markets for Evercel's batteries in Europe and the Far East. To that end, the company took steps toward delivering its rechargeable nickel-zinc batteries to these markets. In Europe, the company teamed with Oxygen, S.p.A. and Eurosolare, the solar energy division of the ENI Group of Italy, to develop a series of solar powered electric vehicle maintenance and charging stations in key areas of major cities in Italy for use with Evercel's nickel-zinc batteries and traditional batteries.
In Asia, the company received an order for scooter batteries from the Flying Electric Motor Co., Ltd. Incentives from the government of Taiwan have been announced that favor the high-performance characteristics of Evercel batteries and should help to lower the cost-barrier for consumers.
-- Capital Financing
Despite extremely difficult market conditions, Evercel raised $15.9 million through a public offering in May 2000 that provided capital to help expand manufacturing in the U.S. and in China. The company recently announced its intention to obtain additional equity financing to further strengthen its ability to execute its commercialization strategy.
Evercel, Inc., (http://www.evercel.com) is a leading manufacturer of high-performance, environmentally friendly and cost-effective nickel-zinc rechargeable batteries for a wide range of applications, including scooters, trolling motors for boats, electric bicycles, electric vehicles, lawn mowers, electric wheelchairs and golf carts. The Company, based in Danbury, Connecticut, operates manufacturing facilities in Newport News, Virginia, and in Xiamen, China. In China, the Company operates as Xiamen Three Circles-ERC Battery Corp., Ltd., a joint venture.
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