UQM Technologies announced that the quarter (Q2) that ended June 30, 2014 brought a drop of revenues by almost 50% from $1.9 million in 2013 to just $1.0 million this year.
This didn't help income. In fact there is net loss of $1.3 million.
Eric R. Ridenour, UQM Technologies President and Chief Executive Officer stated:
“While quarterly revenue was impacted by the delayed start of the 2014 California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project as well as the timing of customer orders, we continued to make significant progress on our strategic initiatives. The addition of new customers in a variety of important geographies, particularly China, is broadening our reach. We now have more total customers than we have ever had who are designing our industry-leading products into their next-generation vehicles. Together with key manufacturing certifications, we believe the strategic components are coming together for long-term success.”
Well, if there is a lot of customers, then we should expect better results from here on out.
Poor UQM still must handle probably hundreds of PowerPhase Pro systems produced for CODA over 2 years ago, which are worth more than revenues for the whole 2014 fiscal year (at least on paper).
If company does not find a way to quickly sell all those drivetrains, then there should be a lot of discounted stuff available in the near term. We are curious in what vehicles CODA's hearts will beat.
We carry a large inventory balance originally acquired for CODA and may not be able to sell this inventory.
"At June 30, 2014, we had aged inventory of $7.9 million of PowerPhase Pro ® systems on our books originally acquired for now-bankrupt CODA. We believe the PowerPhase Pro ® system is right sized for many medium-duty truck, marine, passenger vehicle and stationary power applications, and this inventory is now for sale to other customers. While we believe that there continues to be a strong market for these products, a change in market conditions or technology advancements could make this inventory obsolete , or the actual realizable value upon sale of this inventory to be substantially less than its book value , causing a material adverse effect on our results of operations. "