Business
Electrovaya Reports Q2 FY2022 Results
Revenue Increases by 47%; Purchase Orders Increases to Over $25 Million TORONTO, ON / AC...
About this update from Electrovaya Inc.
[{"type":"text","content":"Electrovaya Reports Q2 FY2022 ResultsRevenue Increases by 47%; Purchase Orders Increases to Over $25 MillionTORONTO, ON / ACCESSWIRE / May 10, 2022 / Electrovaya Inc. (\"Electrovaya\" or the \"Company\") (TSX:EFL)(OTCQB:EFLVF), a lithium-ion battery manufacturer with differentiated intellectual property that allows heightened safety and improved longevity, today reported its financial results for the fiscal second quarter ended March 31, 2022 (\"Q2 FY2022\"). All dollar amounts are in U.S. dollars unless otherwise noted.Financial Highlights:Revenue for Q2 FY2022 was $4.3 million (C$5.4 million), compared to $2.9 million (C$3.7 million) in the fiscal second quarter ended March 31, 2021 (\"Q2 FY2021\"), an increase of 47%. On a sequential basis, revenue in Q2 FY2022 increased more than three-fold compared to $1.3 million (C$1.6 million) in the fiscal first quarter.Sales anticipated to grow rapidly in the second half of the 2022 fiscal year (\"FY 2022) as production ramps up to meet existing demand. Purchase orders in hand exceed $25 million (C$31.5 million).The gross margin for Q2 FY2022 was 25%, compared to 32% for Q2 FY2021. The decrease was due to a number of factors, including: inflationary pressures on material costs, increased shipping and logistics costs, and foreign exchange movements. The Company has taken steps to reduce inflationary pressures such ordering key components necessary for 2022 deliveries thus locking in current prices and avoiding further component price increases. The Company's products also had a recent price increase and is targeting gross margins near 30%.Business Highlights:In January 2022, the Company announced approximately $6 million of orders through its OEM sales channel for a single e-commerce end user. The end user will deploy the batteries in Materials Handling Electric Vehicles in two new distribution centers in the United States. In April 2022, the company announced further purchase orders valued at approximately $10.6 million, including a blanket purchase order from its OEM sales partner valued at more than $9.4 million, and other purchase orders worth approximately $1.2 million.In May 2022, Electrovaya's credit facility was increased from C$11 million to C$14 million. The increase supports working capital requirements in order to accelerate production to meet current sales demand. As consid...