Valence Reports Record Revenue for Second Quarter FY 2007; Saphion II Prototypes by Year End
9 November 2006
Valence Technology, providers of Saphion lithium-ion phosphate rechargeable batteries, reported record revenue for the second quarter of fiscal year 2007 (ending 30 Sept.) of $6.4 million, an increase of 15.5% over the second quarter of fiscal 2006, and an increase of 101.3% over first quarter of fiscal 2007.
The substantial increase in revenue is a result of the small-format N-Charge system orders that were scheduled to ship in the first quarter but were postponed due to the Company’s UL recertification process. Large-format systems represented 69.0% of total revenue for the second quarter, up from 63% from the second quarter of fiscal 2006.
The company reported a net loss available to common stockholders of $4.8 million, compared to a net loss available to common stockholders of $8.1 million in the second quarter of fiscal 2006, and a net loss of $5.7 million, in the first quarter of fiscal 2007.
I am pleased with our cost reduction programs and enhanced manufacturing processes, as well as the momentum we are experiencing for our large-format Saphion batteries. We will remain focused on cost control, quality processes and products, improved productivity and higher revenue, while diligently working to bring the Company to profitability.
Battery technology improvements are slow processes because of the technologically intense and complex issues involved in developing battery chemistry. The market changes slowly from legacy technology to new technology. Valence is continuing development of its Saphion II technology. This represents the next uptick in energy density for Valence over the Saphion I technology...It will take time before it is ready for production. Prototypes for manufacturing will begin before calendar year end.—Dr. James R. Akridge, President and CEO
Saphion I (iron phosphate) technology has some room to grow in energy density mainly through improvements in assembly processes and in coating and binding technology. Saphion II offers an uptick in voltage to 3.6V compared to the 3.2V of Saphion I technology.
Saphion II also offers additional capacity mainly due to “how we squeeze out the remaining capacity over and above the voltage advantage by cell design and binding and those types of factors,” according to Akridge.
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