ZAP reported first quarter revenue of $2.9 million, an increase of 141% over sales from the first quarter of 2005 due primarily to the recent sales of Smart Cars Americanized for ZAP, as well as electric vehicles and consumer items. The month of March saw $2 million in sales for various models of the Smart car, which ZAP has priced in the $25,000 range.
The results marked the largest quarterly increase in revenue since ZAP merged with Voltage Vehicles and launched its automotive marketing and distribution business plan in 2002.
Net loss for the quarter ended March 31, 2006 was $2.8 million as compared to a net loss of $1.6 million for the period ended March 31, 2005. The increase was primarily due to higher consulting and professional fees, as well as stock-based compensation expenses due to the adoption of SFAS 123R.
The increase in sales for the quarter reflects the initial sales and distribution of the Smart Car to ZAP authorized dealers nationwide. Our dealers say they are selling the cars as fast as they can get them and we are excited about ZAP’s opportunity to be a leader for micro-cars. We look forward to the rapid ramp up to fulfill the demand, which now includes the roll-out last week of our new XEBRA electric car.—Steve Schneider, ZAP CEO
ZAP has scheduled for production a new and improved line of electric scooters: the ZAPPY3 Pro and the ZAPPY3-EZ. In addition, the ZAP BUZZZ all-terrain vehicle and the ZAP MUD-E trail bike have been added to the electric vehicle production line.