NEW YORK, May 16, 2011 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries as well as a manufacturer of electric vehicles, today announced financial results for the quarter ended March 31, 2011.
The Company had revenue of $28,641,735 for the three months ended March 31, 2011, an increase of $9,092,718 or 46.5%, compared to $19,549,017 for the three months ended March 31 2010. The increase in revenues was primarily due to the contribution of revenues from:
- Electric Vehicles Manufactured by Wuxi ZQ. Wuxi ZQ revenues of $12,743,153 for the three months ended March 31, 2011 represented an increase of $3,646,503 compared to revenues during the three months ended March 31, 2010.
- Batteries Manufactured in the new Shenzhen Facilities. The Company acquired the assets of Shenzhen ZQ in January, 2011. The first quarter revenue attributable to the new Shenzhen operations was $4,348,181.
- Batteries Manufactured in Harbin. Revenues of $11,550,402 from the Company's Harbin-based battery operations for the three months end of March 31, 2011 represented an increase of $1,098,035 compared to $10,452,367 in revenue for the three months ended March 31 2010.
At March 31, 2011 the Company had a backlog of $60,192,583 for delivery through the next 6 months, including a battery backlog of approximately $49,434,363.
Although revenue increased by 47%, the cost of goods sold increased by 69%, resulting in a reduction in gross margin from 49% in the first quarter of 2010 to 41% in the first quarter of 2011. The primary reason for the decrease was the low margin achieved on sales of small capacity batteries manufactured in the new Shenzhen facility. Although management believes that it will be able to improve the profitability of the Shenzhen operations, gross margins for the remainder of 2011 are likely to remain lower than in 2010 due to the inclusion of the Shenzhen sales.
Operating income increased by 40% quarter-to-quarter, reaching $9,803,127 in the first quarter of 2011. Other income (expense) contributed an additional $9,110,629, primarily due to the reduction in the fair value of the Company's outstanding stock purchase warrants that occurred when the stock price fell suddenly at the end of the quarter. The net income for the first quarter of 2011, therefore, was $16,969,206, an increase of 126% from the first quarter of 2010.
Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, said: "We are pleased by the strong financial results achieved in the first quarter of 2011. Our capacity for continued growth is evident in our balance sheet. Even after acquiring both the Shenzhen manufacturing operations and the industrial park in Dongguan during the quarter, we still had $114,036,493 in working capital at the end of the quarter, including $86,449,459 in cash. With a solid backlog and an ever-expanding market presence, we look forward to positive results in the coming months."
Mr. Fu continued: "The strong financial results achieved in the first quarter are particularly heartening, as our Company is currently under assault from short-sellers and strike suits. Even as we were completing our quarterly financial report, on May 5, 2011 yet another "report" regarding ABAT was circulated by two acknowledged short-sellers whose sole objective is to manipulate and depress the price of ABAT shares for personal financial gain. These and other similar "reports" are premised on gross inaccuracies and distortion of facts, information derived from unidentified "investigators" and "customers," and unsubstantiated rumor and innuendo. ABAT has previously responded to these unfounded attacks, will not dignify them with further response, and will vigorously defend itself in the securities class actions premised on these baseless publications."
In addition, Mr. Fu said that he wishes to express his thanks and admiration to the staff and shareholders of ABAT for their continued support of the Company and its future plans, noting that with the addition of our new Shenzhen facility and upon completion of our Dongguan City facilities, we will be well positioned for future growth.
About Advanced Battery Technologies, Inc.
Advanced Battery Technologies, Inc. (Nasdaq:ABAT), founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric vehicles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. Early in 2009, the Company acquired Wuxi Angell Autocycle Co. Ltd., an electric vehicle manufacturer, and renamed it Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ"). The Company has a New York office, with its executive offices and manufacturing facilities in China.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.