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Posted: March 12, 2008
Ener1 Reports Year-End 2007 Results and Business Outlook for 2008
(Nanowerk News) ENER1, a leader in automotive energy storage, today reported results for the year ended December 31, 2007 and discussed the business outlook for 2008.
Summary results for fiscal year 2007 include:
Year-end cash and equivalents of $25 million;
$43 million increase in stockholders equity, with a year-end
shareholders deficit of $(7) million;
$37 million reduction in debt and redeemable convertible preferred
stock at year end, with less than $4 million in principal of our senior
secured debentures outstanding as of today;
For the first time since 2002, our independent auditor issued an
unqualified report on our financial statements.
Highlights of the company's outlook for 2008 include:
Placed an order for a large-format coating machine and related
equipment for our Indianapolis plant with capacity to produce over
1.0 million HEV battery cells per month;
If our EV battery prototypes are accepted by Think Global, we are
scheduled to commence volume production under our contract by year-end;
Our goal is to receive awards in 2008 to have our battery systems
designed into two additional car models;
Plan to achieve 1 kW of power for our EnerFuel division
high-temperature fuel cell stack program.
Commenting on the company's progress in 2007, Ener1 Chairman Charles Gassenheimer said: "We now have customer-funded programs in each of the three verticals of the electric drive train -- HEV, PHEV, and EV. And we are preparing for volume production of battery packs at EnerDel in Indianapolis under our supply agreement with Think Global, as well as for possible HEV contracts from other automakers. Deliveries under the Think contract are expected to commence in December 2008. We plan to make $12 million of new equipment expenditures in 2008. That number may increase as we get further visibility on customer purchase orders for our products."
Previously, industry expectations for the introduction of lithium-ion batteries into HEVs targeted 2010. However, developments at last week's Geneva Auto Show may be the first indication of acceleration in this process. Daimler, General Motors, and Chrysler all announced plans to start using lithium-ion battery systems, with Daimler announcing the earliest expected adaptation -- a 2009 Mercedes sedan.
Recent supply problems with respect to nickel-metal hydride batteries combined with the large number of scheduled hybrid vehicle introductions in 2009 and 2010 have heightened industry attention on a supply-demand imbalance that is developing for the lithium-ion battery. We believe that worldwide, there is little lithium automotive battery manufacturing capacity. Our EnerDel plant in Indianapolis, with planned capacity to produce 300,000 HEV battery packs a year, is the only U.S. manufacturing facility for automotive lithium-ion battery systems.
As exciting a year as 2007 has been for Ener1 and the industry at large, we expect that 2008 will represent an even bigger step forward. We believe that the safety and power of our HEV batteries will enable Ener1 to advance its leadership position among the manufacturers of lithium-ion battery systems globally.
About Ener1, Inc.
Ener1, Inc. OTCBB: ENEI is an alternative energy technology company that is developing 1) lithium ion batteries for hybrid electric vehicles (HEV) at its 80.5% owned EnerDel subsidiary, 2) commercial fuel cell products through its EnerFuel subsidiary, and 3) nanotechnology-based materials and manufacturing processes for batteries and other applications at its NanoEner subsidiary. For more information, visit http://www.ener1.com or call 954-556- 4020.