Business
Electrovaya Reports Q1 FY2020 Financial Results
Continued progress in cost reductions and scaling to meet customer demand TORONTO, ON / ...
About this update from Electrovaya Inc.
[{"type":"text","content":"Electrovaya Reports Q1 FY2020 Financial ResultsContinued progress in cost reductions and scaling to meet customer demandTORONTO, ON / ACCESSWIRE / February 14, 2020 / Electrovaya Inc. (\"Electrovaya\" or the \"Company\") (TSX:EFL)(OTCQB:EFLVF), a lithium ion battery manufacturer with industry-leading performance and substantial intellectual property, today reported its financial results for the fiscal first quarter ended December 31, 2019 (\"Q1 FY2020\"). All dollar amounts are in U.S. dollars unless otherwise noted.Financial Highlights:Revenue in Q1 FY2020 was $0.9 million (C$1.2 million), compared to $2.0 million (C$2.6 million) for the fiscal first quarter ended December 31, 2018 (\"Q1 FY2019\"). The decrease in Q1 FY2020 was due in part to the Company relocating its manufacturing and other operations during the quarter as well as the need for additional working capital, which has now been secured.Gross profit for Q1 FY2020 was $0.3 million (C$0.4 million), or 37% of revenue, compared to gross profit of $0.7 million (C$0.9 million), or 37% of revenue, for Q1 FY2019.The Company continued initiatives to contain costs while pursuing revenue growth opportunities. Operating expenses were reduced to $2.1 million (C$2.8 million) in Q1 FY2020 from $2.5 million (C$3.3 million) in Q1 FY2019. Excluding interest and stock-based compensation, the remaining overhead expenses were reduced from $1.8 million (C$2.4 million) in Q1 FY2019 to $1.2 million (C$1.6 million) in Q1 FY2020, a reduction of 38%.Net loss in Q1 FY2020 was $1.9 million (C$2.5 million), compared to a net profit of $2.8 million (C$3.7 million) for Q1 FY2019. The net profit in Q1 FY2019 was primarily attributable to a gain on the sale of the Company's former head office building.Business Highlights and Outlook:The Company's order backlog exceeds $12 million (C$16 million) due to strong customer demand. The planned ramp-up of battery deliveries in the fiscal second quarter ending March 31, 2020 will be somewhat delayed due to the ongoing disruption of the global supply chain because of the coronavirus. Deliveries will extend into the fiscal third quarter ending June 30, 2020, barring unforeseen circumstances.In Q1 FY2020, Electrovaya moved its corporate head office and manufacturing operations to 6688 Kitimat Road in Mississauga, Ontario. The new location comprises approximate...