Ener1 Reports First-Quarter Results for 2011

NEW YORK, May 10, 2011 /PRNewswire/ -- Ener1, Inc. (NASDAQ: HEV), a leading manufacturer of lithium-ion energy storage systems for transportation, utility grid and industrial applications, today announced financial results for the first fiscal quarter of 2011 ending March 31, 2011.  

"We believe our first-quarter results represent another step forward in building a profitable business," said Ener1 Chairman and CEO Charles Gassenheimer.  "We took definitive steps on the path toward achieving our goal of being EBITDA positive.  More importantly, we have laid a strong foundation within our grid energy storage business, and we anticipate rapid revenue growth in the second half of 2011.  We are also seeing positive revenue growth from our industrial small pack business, and we have repositioned our transportation business to attack the medium- and heavy-duty markets.  In addition, we expect our joint venture with Wanxiang to come on-line in the second half of 2011 adding to our growth trajectory this year." 

Total consolidated revenue for the quarter was $23.1 million, an increase of 110% over the first quarter of 2010.  Consolidated gross profit margin improved to 24%, compared to 10% in the year-ago quarter.  Due primarily to an impairment charge, the company reported a net loss of $84.7 million, or diluted net loss per share of $0.51 for the quarter.  The impairment charge represents a $69.4 million increase in net loss, which represents a one-time $59.4 million impairment recorded during the first quarter to write down the company's investment in Think Holdings and a $13.9 million loss on financial instruments, which is primarily attributable to the impaired value of the investment.  The impairment charge and loss on financial instruments totaled $73.3 million, or $0.44 per diluted share, for the three months ending March 31, 2011.  This compares to a net loss of $15.3 million, or diluted net loss per share of $0.13, during the same period last year.  

First quarter highlights included:

• Final testing began on two grid energy storage units for the Russian Federal Grid Company to be shipped in the next few weeks;
• Completion of delivery of nine batteries to Hyundai Heavy Industries by Ener1's transportation group to power all-electric transit buses in Seoul and securing of an order for ten additional systems to be delivered in the third quarter;
• An increase in revenue by 12% and improved gross margin percentage of 22% over the same quarter last year by our small pack business, which provides lithium-ion battery solutions to companies like Motorola;
• A new president, Chris Cowger, formerly vice president and general manager of AMD's global consumer software and peripherals division.

"As the market for lithium-ion-based energy storage systems unfolds, Ener1 will continue to differentiate itself through its prismatic-based, high-energy product suite," Gassenheimer said.  "We believe we have taken the right steps to position ourselves – including adopting the right strategy, management team, products and technology – to deliver value to our shareholders."

The company will host a management conference call this afternoon at 5:00 p.m. ET to discuss the quarter's results. A live webcast will be available on the company's website at http://www.ener1.com/?q=content/ener1-events.  Alternatively, participants within the U.S. can dial 888.713.4217; participants from outside the U.S. can call 617.213.4869.  The participant access code is 82861405.

A replay of the webcast and transcript of the conference call will be available on the Ener1 investor information page at http://www.ener1.com/?q=content/ener1-investor-information. Alternatively, the audio replay of the conference call will be available until May 17, 2011.  To access the replay, dial 888.286.8010 from within the United States, or 617.801.6888 from outside the United States.  The access code is 46045665.

About Ener1, Inc.

Ener1, Inc. is a publicly traded (Nasdaq: HEV) energy technology company that develops compact, lithium-ion-powered battery solutions for the transportation, utility grid storage and industrial markets. Headquartered in New York City, the company has more than 700 employees with manufacturing locations in the United States and Korea. Ener1 also develops commercial fuel cell products, nanotechnology-based materials and manufacturing processes.

Safe Harbor Statement

Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

SOURCE Ener1, Inc.

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